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5 Advertising Secrets That Will Grow Your Company Even in the Worst Economy

It doesn't matter if we're in a recession or in boom times, the name of the game for a winning business is two simple words - market share. The more you have of it, the better your business will do regardless of the economy.

Now that we're in a recession, though, the question is how do you gain market share in a recession? The good news is it's a lot easier than you might think. In fact, tough economic times are the perfect time to expand your market share. In boom times, everyone is spending money to grow. They've got cash to burn, and they're willing to try just about anything to grow their market share. That means the competition for market share is fierce.

Competition for market share falls off dramatically in a recession. When times get tough, conventional wisdom says to cut back on everything - including marketing and advertising. So businesses, especially small businesses, cut back on their advertising. This creates a void that needs to be filled. And the business that fills that need will likely grow substantially - even in hard times.

Better yet, the cost of marketing and advertising usually goes down in tough times. When people cut back on advertising, they still have to attract business. They typically do it by cutting prices. Even businesses that support the marketing and advertising industry get caught up in price reductions. So your costs are much lower.

Professor John Quelch, of Harvard Business School, agrees: "It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at a lower cost than during good economic times."

He's not the only one who has seen it work. Apryl Duncan, a marketing expert, says, "Advertising in a recession is actually a smart business move to grow your business now and for the future."

This brings out another important point. How you handle this recession will determine how well you do when the recession is over. American Business Media explains, "Companies that either maintain or increase their marketing spending during times of economic uncertainty, experience overall growth at the expense of their competition and continue that growth over a three-year period of time after the uncertainty has passed."

Frankly, I've never seen a business that cut its marketing and advertising expenses survive a recession. It's a terrible long-term strategy. It's like going on a diet during a famine.

With that said, it is tough to go against the grain. You have to be courageous. You have to be a lone wolf at times. And you have to spend your advertising and marketing dollars wisely. In a recession, revenue drops. So the money you do have must go a lot further. You have to pick your avenues carefully.

To make the most of your advertising dollars, there are five advertising secrets you must consider to find success:

First, focus on advertising that offers the most impressions for the least amount of money. In other words, when you spend one dollar, how many people will that one dollar allow you to communicate with?

Second, put your money into advertising that communicates with your potential customers over and over again. One-shot wonders, such as space ads in magazines, may work. But they're very expensive. And, once they're gone, you have to spend more money to do it again.

Third, your advertising should be flexible. You never know which message is going to resonate with your customers. Sending out only one message will catch the eye of a few people. But sending out multiple messages will attract substantially more. Direct marketers use tests to determine which message is going to work the best. And then they focus all their efforts on the winner. Wouldn't it be better to use all of those messages? Of course it would. But direct mail is expensive, so they can afford to send out only one.

Fourth, keep your advertising focused on your specific customers. If your business is in downtown Wabash, then you don't want to pay for advertising that reaches people who live two hours away. That's a waste of money. The chances of gaining them as a customer is very slim. But that's what happens when you advertise on TV and radio. Instead of spending money on advertising that doesn't help your business, keep your advertising dollars local. You want to reach the highest number of people with real potential to become customers.

Fifth, have a long-term plan for your advertising. This recession could go on for a couple of years or more. Don't let that depress you. Instead, use it as motivation to plan your advertising for the next two to five years, well after the recession is gone. If you get your plan in place today, once the recession is over, you'll be flying high and able to really grow your business. Everything will be in place for the new growth era. You'll be years ahead of your competition.

The more you can find advertising that fits all five of these criteria, the more likely you are to gain market share and save money. But you're probably wondering what advertising venue can possibly do all of this. Well, there's only one that can do it. And when I tell you want it is, I'm sure it will surprise you.

The advertising tool that fits all five of these criteria and works better than any other form of advertising is none other than an LED moving-message street sign. I know, it sounds crazy. But the U.S. Small Business Administration has done the research for you. And their conclusion proves just how effective an LED street sign is:

"Businesses who added an outdoor LED sign enjoyed typical sales increases of 15%-150%. Not only does an LED display produce a great return on investment, it costs very little compared to other types of advertising. With an LED sign, the average cost to achieve 1,000 impressions (CPT) on consumers as they pass your business is less than 10% of the cost to reach them using any other marketing medium, including TV, radio, or newspaper."

In other words, if you begin using an LED sign to advertise your business, you can reduce your advertising costs to less than 10% of what you are paying for traditional mediums. That fact alone is amazing. Wouldn't it be great to cut your costs by over 90% and not see a drop in sales? I know my clients would love that.

But the LED sign not only cuts your costs by over 90%, it also increases your sales by up to 150%! Here's the proof:

Sonic Restaurants has been installing LED signs across the country. A Sonic Managing Partner reports, "Since my LED sign was installed, my night time business has increased about 20%."

And there are lots of other benefits.

  • With an LED sign, you own the media and you control the content. With traditional advertising, you have to pay each time you run an ad. If you have a change or a new product to promote, you have to wait for the next issue to come out. With an LED display, you're in control. It's very flexible. You can change the message as often as you like. You don't have to wait to advertise your special offers and there is no cost involved to make the change.
  • The U.S. Small Business Administration reports that approximately 85% of a company's customers live or work within 5 miles of the business location. These are the people who are passing by each day. An LED sign allows you to reach 100% of these potential customers. Moving messages capture people's attention. In fact, LED signs often become community landmarks. The owner of Dairy Queen in Nocona, Texas says that "I cannot go anywhere in town that someone does not stop me and make a positive comment about my sign." The bottom line: Everyone who drives by will notice your messages that are advertising and promoting your business.
  • LED signs provide immediate results. LED sign owners report that the signs have an immediate and significant impact on their sales. Warren Croft, owner of Croft Lumber Company in Sayre, PA, purchased an LED sign for his business. The local Sayre Times newspaper did a feature story on the sign. In the article, Mr. Croft told this story: "Five minutes after the sign went up, a customer came in looking for the items we had advertised on the sign. He didn't know we sold the product. He drove by on his way home, saw it on the sign, turned around, and came in and bought it."

But the benefits get even better. Right now, you can put an LED sign in front of your store or church without spending a lot of money up front. Many LED suppliers offer easy lease options. With these lease options, you can experience the immediate benefits of an LED sign without the risk of buying a sign. And the sign actually begins paying for the lease payments as soon as you put it up.

And if you want to buy your sign out right, this is a great time to buy. Many sign makers have their most popular signs on sale. For instance, Signs Plus (www.signsplusleds.com), a national sign company, has some of its signs on sale for 20% off.

If you're looking for the best way to market your business in a recession, look no further than an LED street sign. You easily could see a 15%-150% jump in sales as soon as you put it up. You'll connect with more people on a daily basis than any other form or advertising. Those people will live close to your business and will likely become repeat customers. And once you buy the sign, there's no other investment necessary. What's more, after the recession is over, the sign will continue to work for you. It's not only the most cost-effective means to market your business and gain market share, it's also the most successful.

(Steve Kroening is a freelance writer for Success magazine and is a marketing and advertising consultant for www.signsplusleds.com.)