why realtors should not cut ad budget during recession

“When times are good you should advertise.
When times are bad you must advertise.”


1. Your Competition Won’t Advertise

Most real estate agents will cut costs during economic uncertainty. With competitors cutting their ad budgets, there will be less competition advertising. Stand out from the competition and get your name out there.

2. Tailor Your Message and Make More Sales

During a slump in the economy, consumers pull back on their spending reins and are much more careful about how they put their money to work. Take advantage of this. This is your chance to talk openly about costs, rates, and how you can help.  Once this is over, you’ll have gained a whole new client base that won’t go back to the competition. Alternatively, with rates returning to historical record lows, individuals who were on the fence about homebuying may be willing to pull the trigger now.

3. Create a Long-Term Position for Yourself

As you continue to advertise in good times and bad, you have the chance to be the real estate agent that homebuyers spend with now while gaining their future business. When everyone is advertising it’s more difficult to be heard with all the noise. When marketing is scarce, the return on investment is likely to rise.

The Proof

Several studies point out the advantages of maintaining or increasing your ad budget during economic uncertainty. Advertisers that maintained or grew their ad spending increased sales and market share during deflation and afterward.

During the Great Depression, Kellogg’s doubled it’s advertising spend, investing heavily in radio and introducing a new cereal called Rice Krispies. Kellogg’s profits grew by 30% and the company became the new category Leader over Post Consumer Brand, who cut back spending significantly during that time.

Although the natural inclination for advertisers is to cut back on advertising during an economic downturn, those brands that maintain their ad budget and/or change their messaging can experience a long-lasting boost in sales and market share.

The Solution

While other mediums may be struggling through these challenging times, direct mail remains one of the most effective forms of advertising for agents.  Families are currently spending a lot more time at home, and there is no better way to reach these families than through their mailboxes.  If you are looking for a great way to reach your future buyers and sellers, and want to effectively communicate to them, reach out to us today.  The Neighborhood Connection is perfectly positioned through challenging times to effectively connect agents and consumers.

Dani Repasky

Marketing Director

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