Blockchain businesses, as well cryptocurrency and digital asset owners, have lost a lot of money in the last few weeks thanks to a vicious bear market that has seen bitcoin prices drop below $3,400 for the first time in more than a year. As a result, companies are looking to cut costs, and the marketing and advertising budget is often first on the chopping block.
But that's exactly the wrong business decision.
A recession or similar period of financial uncertainty in an industry is actually the perfect time to devise and implement an advertising strategy. According to a McGraw-Hill Research study of how U.S. businesses behaved during recessions from 1980-1985, companies that kept up with advertising during the 1981-1982 recession grew by 256 percent by 1985 compared to their competitors who either lowered or stopped their advertising spend.
There are a few simple reasons why advertising during a recession pays off, the most obvious being that if most or all of your competition chooses not to advertise, your product will dominate the marketing landscape. With the dizzying array of blockchain and crypto-related products and services that have blossomed in the last several years, an opportunity to stand out like this is rare.
According to the International Journal of Business and Social Science:
An economic downturn is an opportunity to win market share from your competitors. By watching how customers are reacting to a recession and paying close attention to your target market, you can act quickly with changes in the product/service price and positioning as perceived needs of the customers change.
And, while individual customers may spend less during rougher economic times, good advertisements coupled with fewer competing ads can widen the customer base enormously.
The broad tactics for a successful advertising campaign – well-designed content aimed accurately to the target audience – don’t change in correlation with the economy. However, with the drop in the total cryptocurrency market capitalization, companies that start a campaign even as their competitors drop their own efforts will see an even bigger return on their investment down the road than they would in a sunnier economic climate.
Smart executives will seize the opportunity to further expand their customer base and instill brand loyalty that will outlast any recession by hiring an advertising firm specialized in the blockchain industry, such as LGO Launch, to manage their campaign.
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