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As advertising goes, so goes the business. When economic hard times get tough, small business owners, as well as large corporations, go into their advertising budgets, hatchet in hand. Cutting back advertising campaigns is simple and quick, saving the business huge amounts of cash. This can be very dangerous for you. What you think seems like prudence by cutting advertising spending can eventually endanger your business's future. The untruth of the bottom line. The usual justification for individuals cutting advertising cost is to protect their bottom line. However, studies have shown that the businesses that cut their advertising campaigns realize no greater short-term returns on investment than their competitors who do not. More significally, the business that remains strong in advertising actually gain from their "prudent" competitors..securing an advantage that may never be made up. Ultimately, your market position shows up on the bottom line as well as your cash flow. Invisibility can be fatal! If your business
sharply "hacks away" it's advertising spending, it's presence on line can suffer what is known as memory decay. Often with amazing speed. Worse, if your competitors remain aggressive in their advertising techniques, your business can not only lose market share, but "mind" share as well. And so the vicious cycle begins.
Where will you spend hard times? You must understand the concept of staying the course on advertising spending. The lessons are clear:
Presented in Association with SiteSell and Wayne Lockwood.
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