Filed under: General
TVLowCost…Recession provides the perfect opportunity for Advertising to do its job.
An interesting article circulating which makes the case for advertising in tougher times. By offering the UK’s Best Value all-in TV Package at £200k complete, TVLowCost offers Clients a serious Competitive Advantage.
Recessions are different from other economic periods and need to be looked at differently to benefit businesses. There are two focuses when looking at marketing and advertising in a recession:
- Increasing Short- and Long-Term Profits.
- Increasing Market Share.
If you focus this way, you’ll be better off in almost every case both during and after the recession. Recessions clearly reward the aggressive advertiser and penalize the timid one.
Increasing Short and Long Term Sales and Profits.
In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies covering 16 different Industries from 1980-1985. Results showed that B2B co’s that maintained or increased their ad spends during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased it. By 1985, sales of companies that were aggressive recession advertisers had risen 256% over those that didn’t keep up their advertising.
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Comparison of Sales & Ad Expenditures |
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In analysis of the 1990-91 recession, Penton Research Services, Coopers & Lybrand, in conjunction with Business Science International, found that better performing businesses focused on a strong marketing programme enabling them to solidify their customer base, take business away from less aggressive competitors, and position themselves for future growth during the recovery.
Increasing Market Share.
A recessionary market can provide an opportunity for businesses to build a greater share of market through aggressive advertising. This according to The Strategic Planning Institute of Cambridge, MA. Correspondingly, businesses that reduce media expenditures suffer loss of market share. It was demonstrated that aggressive businesses can accomplish these gains through greater expenditures without reducing short-term profitability.
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Comparison of Net Income & Ad Expenditures |
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Advertising can skillfully reposition a product to take advantage of new buying concerns, give an advertiser a stable image in a chaotic environment, and give an advertiser the chance to dominate the advertising media.
Conclusion
A series of six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that advertising aggressively during recessions not only increases sales but increases profits. This fact has held true for all post-World War II recessions studied by American Business Press starting in 1949.
One major B2B advertiser summed it up best. “When times are good, you should advertise. When times are bad, you must advertise.”
Filed under: General
“We try harder”, AVIS famous campaign is a perfect example of what we try to do every day in the different countries where our TVLowCost network is established. Convincing advertisers that, at last, TV advertising is affordable for their brands, and that what they heard from “high cost” advertising agencies is not true anymore. (more…)
Filed under: General
When a company decides to “accelerate”, it must, one day or another, communicate on television. No big success can “escape” investing on TV advertising. Television advertising has a long record of efficiency. All the big brands we know in any category built their business by a strong presence on the TV screens.
But, television advertising is not as simple as some other forms of brand communication. It can generate high investments and create BIG successes or BIG failures… Because the costs involved tend to rapidly become heavy for the company.
This is why we believe that advertisers should be very careful about the choice of their advertising partner when they want to invest on television advertising.
Let us do an analogy. When you have, let’s imagine, a “heart problem”, do you tend to visit your family doctor or the cardiologist? Well, of course, when it is a serious health issue, you will logically go to the SPECIALIST…
We believe that for any brand, going on TV is a very important decision; it will “change” the size and image of the company. Going on television, the “KING OF MEDIAS”, necessitates a very careful approach of it in order to be successful. And today, one will also add another dimension: it has to cost the minimum money possible, because times are tough and every marketing manager or general manager has to spend money very carefully!
This is why we strongly believe that a 100% SPECIALIST “TV advertising agency” such as TVLowCost is the RIGHT ANSWER for clients willing to go on TV and willing to save money!
Except in USA, where the size of the market is so different, in the vast majority of the countries where TVLowCost is established, the “regular” advertising agencies only shoot a few commercials per year. The Top Ten will shoot 30 or 40 per year.
Let us take an example, when at TVLowCost in Paris; we have shot 150 commercials in 2007 and will probably achieve 170 this year. In the last 3 years and a half TVLowCost has shot 420 TV commercials. Very few agencies in our markets can compete with those numbers.
So when you are looking for an agency to bring you efficiently on TV and to help you saving a lot of money, why not giving our local TVLowCost agency a phone call?
In health issues as well as TV advertising, a specialist will always give you better advice than a “generalist”!
