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COPYWRITER'S ROUNDTABLE #998
June 21, 2022
How to Make Bank,
Even In Hard Times
"These are the best of times," wrote Chuck Dickens, at the start of one of his books. Clearly, at the time, he wasn't holding bitcoin. Or recovering from Covid. Or monkeypox.
Because the best of times, these ain't. Soaring gas prices. Soaring food prices. Crashing stocks. Rising recession fears. War and pestilence. Shrinking potato chip bags. We've got it all.
Or rather, it's got us.
In what might feel like a death grip.
But fear not, Cupcake... because I've got some good news.
First the obvious: tough times don't last forever.
And second, this: At least you'll have reading material for your backyard bunker.
How so?
Well, I just went digging in the archives of this very letter -- which, by the way, is close to serving up its 1,000th issue -- and it turns out, surprise, we've gritted our teeth through tough times together before.
In light of that, I figured it might be fun to trot out what I found.
The following bit first shows up in the CR back on October 16, 2001.
Let me know how you think it holds up...
We're headed for recession….
Technically, we're not there yet. But if there was any doubt after the stock market crashed… layoffs started… and businesses started closing… well, there's not so much doubt now.
It's a New World. A New Order.
And many marketers and ad writers are running scared. But is it time to lie down on a steam vent and give up? Or is there money to be made? Take a look at the lessons of history:
* In April 1927, the Harvard Business Review found companies that advertised most during recessions had the biggest sales increases.
* Companies that had higher sales and net income during the recession of 1974-75 didn't touch ad budgets. What's more, they also beat non-advertisers in the two years after the recession ended.
* According to McGraw-Hill, companies that increased ad budgets during the 1981 recession trounced competitors not just during the downturn but for three years following.
* Kellogg pushed their ads through the Great Depression. Post didn't. Guess who dominated the cereal market for the next 50 years. Can you say Corn Flakes?
* Stanley Tools launched its biggest ad campaign during the 1974 recession. Their consumer product division took off. They grew at twice the rate of competitors every year thereafter.
* Chevy pushed car sales in 1975. Ford scaled back by 14%, afraid of higher gasoline prices. Chevy picked up 2% of the auto market. It took Ford five years to regain the lost ground.
* In the recessions of 1949, '54, '58, and '61, companies who cut back ad spending saw their sales and profits fall off. Meanwhile, those who kept their ad budgets higher saw profits increase at a steady pace.
* Consumer spending has increased during every post-WW II recession, according to The American Association of Advertising Agencies.
* Coca Cola increased its worldwide marketing budget by $350 million in 2001. Their net income rose 22%. IBM increased ad budgets by 17% and saw sales rise 8.9%.
How can this be?
Yes, every recession isn't quite the same as the last. This time around, we've got high prices coupled with a potential pullback. Plus, we've got a world emerging from an unprecedented pandemic lockdown.
But here's something that ties those other downcycle periods together with the one that could lie ahead: During recessions, the competition for a prospect's mental real estate tends to settle down.
That is, many competing marketing messages get pulled by hesitant marketers. So there's less noise out there to compete with. At the same time, consumers still need solutions. And they'll buy them.
What's more, while older businesses might know about this rare marketing window that's opening up, there are newer ones that don't. Just think -- businesses that opened after 2008 or so are mostly clueless.
So what to do?
Here are some quick ideas.
Return to values: Now more than ever, emphasize reliability and quality. Hammer hard on the product's core values.
Reward loyalty: Contact repeat customers during crises. They'll be looking for tried and true solutions and might be even more primed to give you the bulk of your sales.
Innovate: Positioning new products might be easier (and less costly) in tough times.
Cut costs: Now might be a good time to negotiate better deals on mailing list prices, printing prices, and more.
Go public: No, not in the stock market. Rather, get your name in the press. Build brand visibility by sponsoring events, stirring the media, etc.
Charge enough: Don't be afraid to charge for good products. Just make a good value argument in your offer copy to justify it. Stress the value of the relationship between seller and customer.
Still seems pretty relevant, don't you think?
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at September 2, 2022 12:13 AM PDT
