Marketing in a Recession

Avoid Premium Market Advertising

There are two types of premium market advertising: The one you buy and the one you sell. Right now, both of those markets are going to have to adopt a budget approach to survive. This can work for you as advertising publishers have to compete much harder for advertising dollars. It gives you more room to negotiate better terms and gives you the freedom to experiment with different formats. If you are in a premium market, you are going to have to adapt to tougher times. Some luxury items might sell well for investors looking to profit in other areas, such as gold. However, other areas like designer handbags and clothing are going to be a really tough sell these days. In that case, you'll have to rethink how to present your inventory to the customers you have to continue to be profitable during a time when consumers have less cash to spend.

Negotiate Better Advertising Contracts

Don't be afraid to haggle a bit with someone who is soliciting you for your advertising campaign. Odds are they want your business very much and they might be willing to fudge the price a bit or throw in a few extra features for the price. It certainly doesn't hurt to ask and it can help you determine what advertising works well for you.

One way to negotiate a better deal is to let the advertiser know that you are experimenting with different formats, but you don't want to buy one package over another. Can they throw in a larger size of the ad for the same price as a smaller one for a limited time to see if it works better? In a way, it would be like a free trial; the incentive for the publishers is that if you like it, you will continue with it at the regular rate. If it doesn't perform the way you expect it to perform, you'll not bother purchasing it for the regular price, but the publisher will still have made some money from the initial sale of the smaller-size ad, making the free trial a win-win for both of you.

Selling Premium Products In A Downsized Market

This is probably the toughest advertising assignment you can do within a recession. How are you going to sell designer jeans to people who can barely afford regular jeans? Obviously, you have to downsize the inventory to less expensive options. You might have to phase out advertising the real premium items and offer direct consultations for people with much more to spend. This not only gets you a contact name, but it also starts to create a one-on-one relationship with people who have that kind of money to spend. For the mass market, focus on discounts and engaging customers with value, even in the luxury markets. For instance, gold chains may not be a necessity, but they are certainly an investment in an atmosphere where gold prices are rising every day. Buying gold chains now is a better value than buying them later when gold prices will be higher, meaning that the gold chains will become unaffordable for many at that time.