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Reduced Advertising in Bad Economy Sends Sinking Message to Customers

by David Williams - May 13, 2009


Categories: Cutting Advertising in a Recession, marketing, advertising, internet marketing, advertisement, spending, recession, sales marketing, marketing online, advertising agencies, advertise, marketing advertising, business marketing, marketing plan, advertising agency, marketing strategy, web marketing, marketing research, marketing services.


Does it really pay to advertise during a recession? A Special Report by Ad-ology reveals how cutting advertising during slow economic times actually harms the consumer's perception of your business.


In fact, according to Ad-Ology's special report “Advertising’s Impact in a Soft Economy,”  nearly 50% [over 48%] of American adults believe that a lack of advertising during a recession indicates the business must be struggling. Likewise, the majority of U.S. adults believe that those businesses that continue to advertise are being competitive and are committed to doing business.


Surprised by these Findings? - We shouldn't be!


In October of 2008 I expressed that a slow economy is not the time to trim advertising spending. See Continue your marketing efforts in the October 2008 issue of SmallBizNews titled: Succeeding in a Struggling Economy


Other Key Findings:



Advertising appears to play a key role in consumers’ view of how a business is doing, and by not advertising, businesses may be sending a warning signal to current and potential customers.


40% of consumers use coupons more now than a year ago.


Most consumers are as willing or more willing to pay more for ‘healthy’ or ‘organic’ products than they were a year ago.


A ‘deeply discounted price’ was the number-one factor that would make consumers more likely to purchase a big-ticket item (+$1,000).


TV, newspaper, direct mail, and Internet top local media from which consumers saw/heard an ad within the last 30 days that led them to take action.


Store Web sites ranked second only to search engines as the way consumers research products and shop online.

Small Business owners need to be Teachable in Slow Economic Times


Okay, so I tooted my horn for stating these things before there was quantifiable data to support my statements. Small High Five and now we we move on...

You've read the news.

You've seen the data.

Now, what are you going to do to help your business grow in this economy?


Seriously, this is not a rhetorical question; the consumers - YOUR POTENTIAL CUSTOMERS are trying to teach you the ways to improve your perception and increase your bottom line.

Are you teachable?

Are you adaptable?

Are you taking proactive steps to achieve sustainable growth?

If not, what is holding you back?


As for me, I am preoccupied with accomplishing those tasks in front of me right now. While I count it a great blessing to be busy in this economy ~ I also recognize the urgency to maintain and strive to improve my marketing efforts if I hope to be busy 3 months from now.


If you are like most small business owners ~ you too are extremely focused on those things that require your immediate attention and consume your energies. How many times do you go home at the end of the day knowing you were very busy but wondering just how fruitful those efforts will seem a week from now.


Remember the cliché "Work Smarter - not Harder?" This is where the rubber meets the road. Each and every one of us needs to take inventory of our to do lists and see what we can delegate as compared to doing it ourselves.


Do you really need to be at the sales counter?

Do you really need to be the one to assist that specific customer?


If so, why? Haven't you hired good peole and invested time, money & training into your staff? Empower them! Give them ownership and trust them to seek your assistance when necessary and take a small portion of your day to invest in the future of your business.

All the best,
Dave Williams

David Williams offers affordable; marketing, advertising, internet marketing, advertisement, sales marketing, marketing online, advertising, business marketing, marketing plans, advertising agency, marketing strategy, web marketing and marketing research services.


Be sure to check out previous issues of SmallBizNews for other Internet Marketing ideas as well. We invite your ideas, comments and suggestions.




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