Archive for the ‘Advertising’ Category
Advertising In A Recession – A Lesson In History
There’s been a lot of realtors that have fallen on tough times like everyone else. Many of them haven’t survived this climate, while others have thrived.
When people tell me that they are waiting for commission checks and deals to close and they cannot afford marketing, my response is “you can’t afford NOT to market your realty.” If you want to grow, you need to get your message out. It’s like gas in your car – without it, it won’t run.
In fact, I think it is even more imperative during recessionary periods to promote your business than in the good times. This is because with fewer dollars to go around, prospects are more selective in who they do business with. Advertising in a recession pays more dividends because you can separate your real estate business from the rest of the pack.
We can learn from history.
Not everyone went under during the depression. David Chase wrote a brilliant article about economic history during the depression, and how some businesses accelled. He cited three corporations that are still here today because they chose to amp up their marketing budget during this devestating time, while others cut back and fell into the ash heeps of failed businesses. For example,
Procter & Gamble: To this day, P&G embraces the philosophy of not reducing advertising budgets during times of recession.
Chevrolet: During the 1920s, Fords were outselling Chevrolets by 10 to 1.
Camel Cigarettes: In 1920, Camel was the top-selling tobacco products
The companies above had products across the spectrum from essential consumables to deferrable purchases to non-essential products. ”Procter and Gamble represents essential consumables, Chevrolet represents deferrable purchases, and Camel represents non-essential products. As you can see, the so-called hierarchy of necessity and want was sidestepped by those who had the marketing chutzpah to ignore such distinctions,” Chase wrote.These companies were in for the long-haul and they took marketing actions to ensure longevity. Today, they are alive and well.
American Business Media states that history has shown that businesses that have steadily continued or increased their advertising efforts during times of economic hardship experienced an overall spike in growth, at the expense of their competition.
What to say about direct mail? Is it here to say, or will it fall to the wayside as social media becomes more and more popular? Direct mail is here to stay. One thing you can say about direct mail is that it is measurable. David Chase put the nail on the head when he pointed out that when budget cuts are hacked, the advertising media with the least ability to measure ROI will lose revenue to measurable marketing channels.
In fact, Invest Bank Cowen and Company found in their research that spending on direct mail actually grew during all of the recessions since 1950.
During tought times, will you survive?… or will your realty thrive?
At Homestead Data, we provide early, accurate and exclusive pre foreclosure data to real estate professionals. For fast counts and expert consultation, call us at 607-785-8158 or visit www.preforeclosuredata.net. Like this post? Follow us on Twitter @shortsaledata.