NEWS FLASH: Cost of Facebook ads down by 35%!But should you advertise during a recession?Ad agencies, consultants, and the network say YES, but is that self-interest or truly a case of getting ahead when your competition has stopped advertising?The cost of Facebook traffic is down 30%, since more people are stuck at home and most advertisers have stopped campaigns.But from a ROI-perspective, unless you’re Brandon Hurtado (selling tons of BBQ for pick-up) or Amazon, your stores are shut down, so you can’t sell.
Sure, personal trainers can do online workouts via Zoom, but the travel industry is hard-pressed to make money with their physical assets being closed.Measuring the efficacy of advertising during a recession is so fraught with challenges that it’s nearly impossible.I’ve looked at a dozen studies and they’re all garbage because of confounding factors– mainly because of selection bias.In other words, when a recession hits, the winners get stronger and the losers go out of business.
BOTTOM LINE: if you can afford to advertise for 3 months (even via the dollar a day strategy)– with no revenue– go for it. “Advertising” is now paying to deliver your content, which isn’t necessarily sales material. It could be helpful training or good news you’re sharing.
Think of your advertising as “digital postage”.
Dennis Yu
Dennis Yu is the CEO of Local Service Spotlight, a platform that amplifies the reputations of contractors and local service businesses using the Content Factory process. He is a former search engine engineer who has spent a billion dollars on Google and Facebook ads for Nike, Quiznos, Ashley Furniture, Red Bull, State Farm, and other brands.
Dennis has achieved 25% of his goal of creating a million digital marketing jobs by partnering with universities, professional organizations, and agencies. Through Local Service Spotlight, he teaches the Dollar a Day strategy and Content Factory training to help local service businesses enhance their existing local reputation and make the phone ring.
Dennis coaches young adult agency owners serving plumbers, AC technicians, landscapers, roofers, electricians, and believes there should be a standard in measuring local marketing efforts, much like doctors and plumbers must be certified.