Amazon’s earnings grew by 28% in 2009. The technology company continued to innovate with new products throughout the slumping economy, most notably with brand new Kindle goods that helped to grow market share. As a result, from the minds of consumers, Amazon became an innovative company by introducing a lower cost alternative to cash-strapped customers.
Another approach used by advertisers is altering the ad message and using short term price incentives to coordinate with the economic climate with consumers that are trying to get a great deal. Some advertisers will offer interest-free loans, coupons or special promotions to boost sales and market share. After the economy bounces back, routine pricing can reunite. For some advertisers that don’t provide cost incentives, they could alter the advertisement message into being pricey but worth it. Another innovative strategy is pointing out the value the brand provides.
Although the natural tendency for advertisers is to cut back on advertising during uncertain times, some of the largest brands (Pizza Hut, Taco Bell, Kellogg’s) that maintain their ad budget or alter their messaging can get a long-lasting boost in earnings and market share shares Brad Adgate.