In these times of economic uncertainty, many advertisers are asking themselves; ‘Should I decrease my online advertising budget?’ This question has been asked from Wall Street to Main Street.
Simply chopping your ad budget is not the solution. Remember that by reducing your budget, you also are limiting the amount of visitors to your site. In addition, as your competition reduces their budget, you also have the opportunity to get a less expensive cost per click, due to a reduction in competition.
An article on B2BAdvertising quoted Charles Brower, former BBDO president, who says, ‘Instead of waiting for business to return to normal, you should be cashing in on the opportunity your overly cautious competitors are creating for you … the fact that your competitors are pulling back can make your advertising dollars look and act even bigger. There are few things as detrimental as a lapse in advertising. It costs much more to get advertising momentum up than it costs to keep it going. Once you let momentum die, you must start almost from scratch again.’
Having an online presence is even more crucial especially during time of a recession; shoppers are trying to locate the best deal to not only save money, but also gasoline. Sales and reward programs will greatly impact the amount of sales you receive. GrooveCommerce.com also suggests that advertisers offer free shipping options to increase revenue.
While trimming the fat and reducing your ad budget may seem like a good temporary solution, it will only cause more work in the future. Remember, fewer eyes to your website, means fewer sales.