If the decline in the advertising industry is anything to go by, it would be easy to suggest that for most small businesses and recently company formations, the first thing to be cut during a recession is marketing spend. However, a recent survey by the Small Business Advisory board suggests that while marketing spend decreased significantly in the past year , many small businesses plan to take advantage of decreasing media rates and increase their spend to gain a greater share of voice.
This survey of more than 3,000 managing directors revealed that over 48% have allocated more budget to marketing as their strategies switch from surviving the recession to growing in it.
Kate Johnston, marketing director of media planning and buying specialists ‘Buy Media’, says:
“Ultimately, these results confirmed our experience over the last quarter; businesses are no longer panicking as much about the future and their attitudes toward marketing have begun to change. Instead of wondering if they will survive the next few months they have begun to look at the long term future of their company. Some of our clients have even experienced marked growth during the downturn and are beginning to see the recession as a platform for growth.”