The current economic condition has created a very tough time for many dealers. With the United States in a recession and many individual cities going through difficult times, it has become tougher to navigate through advertising and marketing, especially buying media. If we take a look at previous recessions, we see proof that cancelling advertising in the midst of a recession is about the worst thing a marketer can do. We are all looking for ways to cut costs and save money, but one thing to consider is that advertising costs should be considered a “fixed expense” just like the rent or mortgage. This should not change, even in tough economic times.

Dealers who decide to cut or cancel their advertising budget during a recession will see the immediate effect of losing market share to competitors. It has been proven that once market share is lost, it is virtually impossible to get it back. It is very expensive to build back any equity the previous advertising created.

If cutting advertising isn’t the answer, what are dealerships supposed to do to keep their advertising alive while being smart about the expense? The answer is buy media more efficiently. Hire someone familiar with media terms or become familiar with buying media yourself. Start by learning about the efficiency of what you are buying. Efficiency is measured by “cost per point” (CPP) on television and radio. Cost per point is the amount of money it will take to achieve one gross rating point. The lower the cost per point, the more efficient that particular time period, program, or overall station is and the further your ad dollars will go. When buying radio, the best practice is to look at the overall cost per point, per station. If you are undecided and looking at four different stations, but have only enough money to buy two stations, cost per point is a great way to decide.

Two other terms to be familiar with are “reach” and “frequency”. Reach refers to the number of people you are reaching in your specific target demographic. The higher the reach, the more people your message will reach. Broadcast television is considered a great reach medium because an extremely high percentage of people watch TV during a 24-hour period. Frequency refers to the number of times your message is hitting your specific target demographic. About five years ago, the goal when calculating frequency was three, but times have changed and the new goal is to reach a frequency of six. With all the segmentation and alternative media being put in front of consumers, they are being blasted by thousands of messages every day and it takes more times to get that consumer to react. Radio and cable TV are widely considered high frequency mediums.

Economic uncertainty should not destroy your advertising efforts, but it should be a time for opportunity. This is the time to refine the way you purchase your media. Know what your media reps are selling. Make sure you are getting more for your money. Currently there are media deals to be had, as rates are lower than they have been in recent history. Savvy marketers will increase or maintain their advertising budgets in a recession, scooping market share from their competitors and holding onto those shares for years to come.
Lisa Cripe is the media director for Letizis Ad Team. For more information email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or visit www.LVAdTeam.com.

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