Ads: More Bang For Your Buck!

Good News: Ad spending is flat according to Competitive Media Reporting (www.cmr.com). While advertising grew by double-digits early last year, it grew by only 6 percent in 4th quarter.

That good?! Sure. While recession-phobics are slashing ad budgets, smart marketers are gaining market share by sustaining -- even increasing ad spending. Sound crazy? Here's why it's smart: If your competitors advertise less it gives your ads more impact. You'll be the first brand a buyer thinks of because he sees your name more. Competitor's sales reps will have to work harder generating leads and closing sales. (I document this in my January 19th tip.) One client told me when they stopped advertising once for a few months, someone started rumors that they'd gone under!

By way of example, let me tell you the story of my adman idol: Leo Burnett. Leo started his ad agency on August 5, 1935 -- in the depths of the great depression. People called him crazy. But, he retorted "There's nowhere I can go but up!" Actually, ad agencies boomed during the depression. Why? Advertising reduced sales costs. Companies that advertised stayed alive --and many prospered in the midst of economic turmoil. Today, Leo Burnett Advertising is one of the most successful agencies in the world.

I'm not worried about another great depression. In fact, an accountant friend tells me the average US recession lasts about 11 months. So, I advise clients to jump on this short window of opportunity to turbo-charge their advertising and branding. But, do it now, before the pendulum swings back.

- Phil Sasso