The Pivotal Research Group, a NYC-based organization that tracks national ad spending across all media, has adjusted downward its anticipated ad-sales growth for 2012. Calling a pronounced uptick in 1Q 2012 a "false dawn" that preceded a market retrenching, it has slashed its forecast ad-spending growth from 2.3 to 1.4%. Predictably, newspapers were the biggest loser, with an 11.3% decline predicted for national papers and an 8.1% percent downturn for local publications. TV and radio are also struggling to achieve market growth.
It’s uncertain to what extent this will impact the sign industry. Its closest cousin that’s tracked on the report, out-of-home (OOH) advertising, is expected to grow 3.3% for the year. The report didn’t indicate a breakdown between static and digital messages. As business owners have grown weary of a weak economic recovery and leery of a double-dip recession, many are reluctant to advertise. This is the time remind them of the late Bruce Barton (a former congressman)’s quote: "In good times, people want to advertise; in bad times, they have to."
This is a golden opportunity to remind would-be customers about the cost-effectiveness of on-premise signage. 3M conducted a fleet-graphic effectiveness study for Cadbury-Schweppes (makers of Snapple, Canada Dry and other foods and beverages) and calculated a cost per thousand impressions (CPM) of $0.48. OOH was next lowest at $3.56; Radio, TV and other mass media were several times higher.
Although such CPM data may not exist for on-premise signs, you need only point to your estimate and remind them a sign is a years-long investment that will probably cost less than a one-time, mass-media ad purchase that will be thrown away or forgotten quickly by most.
Granted, these are challenging times. But, there are still opportunities. Remember that your work provides an extremely valuable service for your customers, and remind them of the branding impact a quality sign provides.