As poor economic conditions force large companies to slash advertising budgets – agile start-ups like Juggle.com view now as the time to spend more than ever.
Belleville, IL (PRWEB) November 13, 2009 — When the economy experiences a downturn, it seems natural for companies to cut back on advertising and marketing.
It turns out, a recession may be one of the best times to advertise because evidence shows competition is advertising less even at popular events like the Nationwide NASCAR Series.
A McGraw-Hill advertising study of 600 businesses found companies that maintained or increased their advertising spend during the 1981-82 recession grew sales for three years following the recession an average of 2.5 times that of companies who reduced advertising during the same period.
While many companies are tightening their purse strings, internet start-ups like Juggle.com have been increasing their advertising budgets month over month since the beginning of the downturn. Stephanie Leffler, CEO of Juggle explains that she adheres to Forbes Billionaire Warren Buffet’s guidance on growth during an economic downturn. “Be fearful when others are greedy, and be greedy when others are fearful” quotes Leffler.
The concept appears to be working.
“The economy’s downturn has created an environment where unique, last minute marketing opportunities become available for a fraction of the price. Agile companies capable of making quick decisions can capitalize on opportunities and small businesses have a lot to gain.”
Until the downturn, Juggle kept all marketing dollars online. Leffler explained that offline marketing was expensive and hard to track for the start-up. “In our business offline advertising is hard to justify. Every advertising dollar we spend is monitored for a meaningful return on investment – we had never seriously considered offline advertising because we have not come close to exhausting our online options – we had no reason to move our advertising dollars offline where tracking return on investment is an inexact science at best”.
Leffler’s mentality shifted as a result of the stressed economy. “All of a sudden we were being presented reasonably priced promotional opportunities for events typically reserved for companies with deep pockets,” said Leffler…
An example of Juggles new offline marketing activities include the sponsorship of a Jay Robinson’s NASCAR Racing Team which features drivers Kenny Wallace and Mark Green. Both drivers will compete in Saturday’s NASCAR Nationwide Series race with Mark Green behind the wheel of Juggle’s sponsored #49 car.
While discussing the upcoming race, Leffler added, “We feel fortunate to have the opportunity to sponsor such an exciting race. Events like Phoenix’s Nationwide NASCAR event are a great way to gain exposure among fans of America’s most popular spectator sport.
Saturday’s Nationwide NASCAR Series event will take place on the mile long oval track at the Phoenix International Raceway. The race will be nationally televised on ESPN2 starting at 4:00 PM EST. The race begins at 4:45 PM EST.