If finances are strained, keeping a low profile at the height of the recession may not just hurt your business, it may put you out of business.
Josh Sommers, who has taken his advertising agency from zero to sixty during the height of the worst financial market since Wall Street collapsed in 2008, believes bad times require making sure your clients know you”™re alive.
That was the message he brought to Orange County chamber members at a seminar on April 28 at the Hilton Garden Inn in Newburgh. More than 75 chamber members, as well as representatives from the print, television and radio media were there to talk about getting the message out.
“I opened my second office in Goshen in 2008, probably the worst time in recent history to expand a business,” Sommers told his audience. But perseverance, promotion and keeping the company”™s profile on the marketplace kept the momentum for his company going ”“ and growing.
“Despite losing several clients after the market bottomed out, I spent more than $25,000 to continue marketing Focus”™ image,” he said. “We raised our profile in a ”˜soft”™ way and even hired someone solely dedicated to business development. We believed what we were preaching to clients ”“ ”˜keep your name out there.”™”
The marketplace is competitive for advertising dollars, but Sommers said as he watched other companies laying off employees, he was hiring. Targeted marketing is what keeps business in business, he told the audience. Interactive, top quality websites are driving the marketplace today.
Advice for advertising agencies? “Do good things for your clients, but be aware of their marketing budget and target it in the best direction.”
For business? “Put some money behind it and put your best foot forward.”
Some companies”™ names are so well-branded and have such a loyal following, the name alone is enough to inspire a shopper. Sommers ticked off some favorites ”“ Harley-Davidson, BMW, Starbucks, Sony and Rolex. “Reality doesn”™t matter,” Sommers said. “Perception does. Toyota can write all the press releases it wants to about quality, but they are not controlling their own brand right now ”“ it”™s important to be believable. If you are not credible, your representative will be shown the door.”
Sommers used Tiger Woods as a good example of bad crisis management. Unlike David Letterman, who went public with his problems and took control of the situation before it got out of control, Woods let the media control his destiny. “It”™s important to be relevant, elegant and compelling and in charge,” Sommers said.
For businesses looking for maximum exposure without breaking the bank, it”™s important to plan an advertising campaign that is targeted and relevant. “No one has unlimited funds,” he said. “Is the glass half empty or half full? Use your advertising budget like water ”“ put it where it will do the most good.”
Sommers reminded his business audience that “people will gladly take your money, particularly to espouse a good cause. But remember, if you do that, it is supposed to be in support of the philanthropic agency, not self-promotion. Draw the line between philanthropy and advertising.”
While Sommers believes radio and television can provide a compelling story, “newspapers, despite the rhetoric, are not declining. They are here to stay. If you want to target business, look for a business-to-business paper. If it is the general marketplace, use a daily or local community weekly. And if you are going to lay claim to being the best, let a third party say it for you.”
Steady placement, leveraging your proximity to your target and a good advertising agency with the client”™s budget and market is what helps keep juices flowing. And Sommers believes better days are ahead. “Now is the time to market…work on your brand and deliver on your promises,” he said.
“Your advertising agency should be telling you where your best market is.” Sommers advised the business community to pick an agency that knows their market ”“ and spend dollars wisely. He also emphasized the importance of taking part in social media ”“ Facebook, Twitter and LinkedIn ”“acknowledging it may not be for every business, but most can benefit from a social media presence.
Bottom line? In order to stay in business, make sure prospective clients know you are still in business. Sommers said the variety of ways to get a company name out there are endless, but make sure it”™s credible and directed to the right market.
“People are very cautious these days about spending money,” said the advertising agency owner, “but you need to be relevant and keep your name out there.”
Jill Varricchio, owner of Concept Promotions in Newburgh, suggested loyalty programs for customers, following the lead of national retailers. “If you can get closer to your clients or boost the morale of your own employees, give them incentives.”
But some did not feel Facebook or Twitter were appropriate for their own business. “These do not really lend themselves to an organization like ours,” said Janice Valentino, public relations director for Hospice, a non-profit in Newburgh.
“Yes, I believe they are a great benefit depending on your business. We are in a different niche, and I”™m not sure social media is appropriate, but advertising in other forms certainly is to get the message about your organization out.”
