You're Awesome!

Resource Center » Why is Advertising So Important During a Recession?

By keeping up a strong advertising campaign during a recession, it is possible for a company to grow even stronger when the economy turns around.

In the time of an economic recession, it seems logical for businesses to decrease spending in any way possible. It makes sense to save money instead of spending money. Cash spent on advertising (including promotional products) is often the first to be cut when there are problems with the economy. However, by continuing to advertise—maybe even more than normal—it is possible for a company to bounce back even stronger than it was before the recession.

It makes good business sense to take a risk in anticipation of better economic times. A recession doesn't last forever! When the economy begins to turn around, businesses that remained aggressive in their marketing techniques will have a clear advantage over their competitors. It is possible to greatly boost company sales over the course of the recession (and the years following) by planning ahead for better times.

When companies begin to cut back on advertising during an economic recession, they become less visible to the public. Many business owners justify this budget cut because they assume that their potential customers do not have the extra money to spend at that point. However, companies that do not reduce their marketing campaigns remain visible to their potential customers during the recession. These companies will be remembered by consumers when they need a particular product or service. When Sally Customer or John Consumer do have money to spend, they will be more likely to buy from the company that has kept up with advertising.

Most consumers will have some money to spend again once the recession passes, and many will want to purchase things that were considered luxuries during those hard times. Companies that were avidly advertising throughout the economic crisis will be the first ones to get customers. The expense of any marketing materials they bought during the recession, such as printed tote bags or personalized can koozies, has the potential to be more than made up by the increase in revenue over normal non-recession sales.  Just remember that consumers will still be noticing advertisements during an economic recession; the companies that advertise the hardest during a recession will reap the most rewards when the economy finally turns around.

Advertising investments can also act as a beacon of hope to employees, customers, and investors. Businesses that cut advertising during a recession are sending a message to the public that they may not be strong enough to weather the difficult financial times. These businesses could be hurt even more when customers and employees look for other places to work and shop. By remaining somewhat aggressive in advertising throughout a recession, a company sends the message that it is dependable and capable. This can be a very comforting thought for customers, investors, and employees!

Article By Jill Tooley
Jill Tooley

Jill has been obsessed with words since her fingers could turn the pages of a book. She’s a hopeless bibliophile who recently purchased a Kindle after almost 6 years of radical opposition, and she loves stumbling upon new music on Pandora. Random interests include (but are not limited to) bookstores, movie memorabilia, and adorable rodents. In addition to managing the QLP blog, Jill also manages the content development team, assists with the company’s social media accounts, and writes like a fiend whenever given the chance. You can connect with Jill on Google+.

Share on FacebookShare on Twitter

Startup Advice

How to Advertise on a Modest Budget
Budget Promos with a Punch
Why is Advertising So Important During a Recession?
Print Advertising is Dead
Why Marketing Dollars Are Always the First to Be Cut in a Difficult Economy
What Makes a Good Logo?
How to Start a Small Screen Printing Business


Quality Logo Products Logo

Quality Logo Products, Inc. is your number one source for stress balls and promotional items.

Quality Logo Products, Inc. · 724 North Highland Avenue · Aurora, Illinois 60506
For assistance, email us at or call 866-312-5646 · Monday - Friday.

Copyright 2003 - 2016 Quality Logo Products, Inc., Registration No. TX7-524-201. All Rights Reserved.

Do you need help? Close Yes, I'd like help
Quality Logo Products, Inc. Need Help? Call 866-312-LOGO (5646)