No Advertising No Business

Uncategorized May 31, 2021

"When you are out of sight, you are out of business!" 


One of the major effects we have seen mainly with young entrepreneurs and SMEs and organizations with limited or low cash-flow or investments, they stop spending on advertising/marketing when the time is tough.


The first thing an organization does in the process of crisis management is slashing its marketing budget. 


Consider you have certain operational costs to drive your business. To understand this scenario, say you have 125,000 AED monthly total burn which is the bare minimum you need to break even.  

Currently, you are operating at 75k AED because of X or Y factors and you have lost certain business. That means you are losing 45k AED per month as you don't have enough business. 


So you would cut down a few employees, and cut your marketing spend. With this, you are losing less money and can survive with the funds that you have. 


You have seen how the COVID situation started, and how it is still impacting the overall businesses. Will it be really worth it just wait and watch? And how long you can do that?


You will run the organization at a minimum burn rate for 6 months or a year? But what after that? You have already lost the battle being out of sight. 


Cutting on marketing budget might have saved you X dollars a month but you lost the opportunity that could have brought a 3X revenue. On top of that, you have lost that month or quarter or that entire year that could have shown you amazing results. 


Now, consider, instead of cutting down on marketing, you would continue to reach out to people strategically and have a constant stream of revenue coming in. Right advertising can bring you results from month to month, all you need is the right strategy. 


There are two most important things your organization needs to invest in:


1) Strategic Advertising to keep your brand alive and generate constant revenue

2) Innovation & Technology to improve overall Customer Experience. 

"Stopping advertising to save money is like stopping your watch to save time!" - Henry Ford. 

Keep a balance, improve your top of the funnel with creative advertising and bottom of the funnel with innovation & technology.


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