COVID-19 caught us all by surprise. In times of turmoil like this trial lawyers are analyzing every expense. They are trying to cut non-essential spending. As they should be. They are looking for ways to have an immediately impact. They are looking for ways to have the most dramatic impact. Everything is lumped into two buckets: Must have and Must cut. Where should you place your law firm’s marketing budget?
The answer will probably surprise you. Cutting your marketing budget can really hurt you now and long into the future.
All we need to do is look back in history to understand why cutting marketing and advertising dollars during economic downturns is a mistake even though it might feel like the right thing to do. Here are some studies that explain why:
A 2009 McKinsey Study found that during economic downturns companies that make the counterintuitive move to increase marketing expenditures outperform their competitors during the downturn and when the economy recovers. McKinsey also found that the best performing companies increased their marketing budgets compared to their competitors and compared to their normal advertising budgets when time were better.
A recent Forbes article demonstrate that companies that invested in advertising during adverse economic times gain significant market advantages when the economy recovered. Here is one example Forbes cited:
In the 1920s, Post was the market leader in the cereal industry. During the Great Depression Post cut back significantly its advertising budget and rival Kellogg’s doubled its advertising spend, investing heavily in a new cereal called Rice Krispies, featuring “Snap,” “Crackle” and “Pop.” Kellogg’s profits grew by 30% and the company became the market leader, a position it has maintained for decades.
McGraw-Hill Research analyzed 600 companies during the 1981-82 recession found that the companies that maintained or increased their advertising spend had higher revenues during the recession and in the three years that followed these years. The study also found that aggressive advertisers during this period saw an average increase of 256% in revenue by 1985.
History shows us we should not cut our marketing budget. We should maintain or increase our marketing budgets wherever possible.
The cost of advertising drops during recessions but you need some one to guide you to the very best opportunities.
Accelerate Now knows where the best digital marketing opportunities exist for trial lawyers right now. We will show you how to win online for less so you can enjoy long term financial success. And Accelerate Now will create a custom law firm marketing program that is perfect for you and your budget. Schedule a call.
Here’s to you building a strong financial future.
Getting started with Accelerate Now is easy! Simply schedule a call, get up and running quickly, and enjoy long term financial success. Schedule a call.
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