"I know I waste half the money I spend on advertising, I just don't know which half."
This old statement about not knowing how effective advertising is becomes especially true in a down economy. The good news is that when advertising online you have a much broader audience than typical brick 'n mortar businesses, so reach becomes a large factor. But most importantly, don't shy away from using advertising as a way to grab market share in a down economy. When advertising for affiliate websites especially, it's important to get while the gettings good.
"He who stops advertising to try to save money, could just as easily stop his clock to try to save time."
Going back in time and looking at other down turns in the economy sheds some light on how to maximize your advertising. Tweaks are necessary to maximize that advertising dollar, mainly because buyer mentality changes greatly. Focus shifts from wants to needs and convincing a potential customer that they need your product becomes another trial and error game, like when you first started.
Online advertising can get a lot less expensive during a down economy. History proves that in such economic crunch times that the marginal players, those smaller competitors, etc will be more likely to cut back on their advertising dollars. After all, it's expected that they would be more willing to make cuts there than to consider cutting elsewhere, like employees, or development costs. That's why being affiliate, where you have no actual inventory, can put you in the drivers seat when advertising when an economy is bad.
Buying Patterns Shifting To AlternativesAnother benefit to advertising in a down economy is the fact that buyers will be looking to alternatives to the traditional loyal brand names. Generally this could mean a savings for a buyer who stuck with tried and true, opening up another niche for the affiliate.
As an example, say during a booming economy you are struggling to advertise for an off brand computer. Obviously competing with Dell, HP, and Gateway online can be very difficult because of brand recognition. However, during a bad economy consumers will be looking for alternatives and allows your advertising dollars to push that offbrand and accumulate more sales, not just window shoppers. Consumers will be more likely to purchase that cheaper alternative, thus increasing your conversions.
Focus On The CustomerRetention of buyers will also become more important in a down economy. There will be fewer customers out looking to actually buy, since more will be content with doing with what they have. Make sure that after getting visitors to your site, through online advertising, they know how much you appreciate their business. Even in an affiliate driven website its possible to increase customer retention through memorable advertising methods, so they automatically look for your site next time they need a product.
If the economy gets worse focusing on the customer will become even more important. Repeat business and word of mouth will further add to the value of your advertising dollars. Those with larger budgets could also use advertising as a way to define your companies core values, further increasing the focus on your customer.
ConclusionLastly, always remember, no matter how bad it gets there is always room for opportunity. Be aggressive within your means and strive for growth, looking at every angle and ways to move in on your competitors. Don't be content with the status quo, fortunes are made in bad economies.
