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Another Great Year at RAB

Okay people, so let's cut to the chase. Everyone is tuning into the news and reading papers and magazines to find out what's really happening with the economy. It even seems like half the questions Dave's been getting on the air begin with, "Because of the economy right now..." So how do you - someone who works in sales - thrive at a time when our nation is afraid the economic sky is falling?

The recent RAB convention in Atlanta had some great answers. Selling Radio in a Challenging Economy, a seminar presented by Mike Mahone and Dave Casper, suggests thinking LONG TERM (Now there's an idea!). In the last century, advertisers who held out and even bumped up their advertising budgets ended up "on top" during and after an economic crisis. Although money might get tight and the country as a whole might seem worried, people aren't going to stop buying. The advertisers that stay focused and continue to brand themselves can expect huge results.

Let's look at a few examples:

Back in the 1930s, Kellogg maintained its advertising during the Great Depression while Post did not. As a result, Kellogg gained domination of the dry cereal market and held onto that domination for half a century. (Casper, 32)
Heavier advertising was also credited for the improved performance of Revlon and Philip Morris during the recessionary years of 1974-75, while sales of Avon Products and Hershey Foods slumped after advertising cuts. (32)
During the 1975 recession, Chevrolet increased their advertising while Ford cut theirs by 14%. In the end, Chevy's market share rose by 2%, and five years later, Ford had not regained its share points. (33)

Obviously, cutting advertising budgets during a recession or economic slump can have major, long-term, negative results. We tell our listeners all the time that choosing the easiest way out is rarely the answer when you find yourself between a rock and a hard place. You have to work hard and look at things with a long-term perspective in mind. And that's exactly what your advertisers need to do starting today. The minute you bail, you start losing brand recognition in the marketplace.

For the full Selling Radio in a Challenging Economy PowerPoint presentation from the RAB conference, go to http://www.rab.com/rabEcon.ppt. This information is fantastic and will revolutionize the way you view advertising and the economy. The RAB is an excellent resource for your staff and has a wealth of tools to begin implementing today!

Works Cited

Casper, Dave and Mike Mahone. (2008, February 13). Selling Radio in a Challenging Economy. Presented at a RAB seminar in Atlanta, Georgia.