The glass is half full

recession cartoon

I know it may surprise some of you to learn that The Genius is actually a relentless optimist. Critical as I may sometimes be, the truth is I have a natural tendency to look for the positive in people and situations. It’s just not as entertaining to write about the nice stuff. Sorry.

Given my optimistic nature, it’s been rather annoying to watch tv, read magazines, or even make small talk with my neighbors lately—because everyone has their panties jammed waaaaaaay up their @#$*! as a result of “the current economic situation” [insert melodramatic music here].

Listen, people. I understand that the sh*t has hit the proverbial fan. I’m not denying the facts. We all had one big over-indulgent party together, and now we’re suffering from one MASSIVE hangover. But it doesn’t do us any good to dwell, now does it? Does complaining all day about how much your head aches make things better?

Genius that I am, I’m fairly certain that “this too shall pass” and in the meantime, we best not PANIC. Which is why I took the time out of my very busy and extremely important schedule to throw together a little bit of thinking aptly titled “The Glass is Half Full.” Lest you dismiss it as yet another martini-induced rant, I assure you, it’s got real data. Naturally, it has a few curse words. And most definitely, it offers some fresh perspective.

I hope you’ll enjoy it, and… if you’re so inclined, perhaps you’ll even pass it on. Because just about everyone could use a bit o’ good news.

Recession? What recession?

Recently, my pal @MarketerBlog drew my attention to this post which suggested that brands that INCREASE their marketing/ad spending during a recession stand to gain a SUBSTANTIAL competitive advantage.

Skeptical? Of course you are. Still—take a moment to consider these tasty data points (from Innovating through a Recession by Professor Andrew J. Razeghi at the Kellogg School of Management at Northwestern University):

  • Increasing advertising spending during economic expansion often yields no improvement in market share, because 80% of your competitors are also increasing their spending.
  • Businesses that maintained or increased their advertising spend during recession averaged higher sales growth during the following three years
  • Within four years, the businesses that maintained or increased their advertising spend during that recession experienced a 256% growth in sales over those that had cut back on advertising
  • A decade later, aggressive recession advertisers increased market share 2½ times the average for all businesses during the post-recession

Surprised? You shouldn’t be. It’s your basic, “Buy Low, Sell High!” strategy. Nothing new here. The problem aint that we don’t know better… it’s that we’re too busy behaving like lemmings to do what we know is right.

Hell, even the guys at The Economist are preaching a “spend more on advertising” strategy. Granted, they might just be hurting for sales… Still, they make some pretty compelling points in this well-designed, cleverly-executed pitch (worth a read, I promise):

My take-away message? Getting through this ‘recession thang’ is a bit like driving through a blizzard. When you hit a patch of ice, instinctively, you want to turn your wheels AWAY from the direction of the skid. DON’T. Even though your knuckles are turning white and every cell in your body is screaming “TURN AWAY!!!!! AWAYYYYYYY, YOU IDIOT!!!!!!!!!!!!”

Turn IN to the skid—or kiss your sweet, scared ass goodbye.