CEPACLaw.com by Rene Perras – When it comes to advertising, the current state of the economy is reminiscent of other economic downturns over the last few decades.
As the economy heads south, the typical knee jerk-reaction by many marketers is to reduce their advertising budgets. Interestingly, in contrast to this reaction, when business is booming there are advertisers that also tend to hold back.
Most retail and service industry marketers face the paradox of having to reduce advertising in times of economic slowdowns. Data from prior recessions indicate that this may be the worst time to cut back advertising, and in fact, presents an opportunity to gain new clients, build brand equity and overtake competitors who have cut their advertising.
When times get tough, cutting back advertising for personal injury attorneys and law firms is strictly an emotional rather than a rational response based solely on the perception of doom and gloom. It is counter intuitive to the risk-taking psyche that is required to practice personal injury law.
Personal injury attorneys that work exclusively on a contingent fee basis are at no greater risk during an economic downturn than they are every single day they practice law. In fact, the business model for personal injury law firms is based on calculated risk. Additionally, many in-house counsels are predicting an increase in personal injury and labor law litigation in the coming year, as often occurs when personal finances are stretched and people are laid off in increasing numbers.
At the core of the decision to continue, increase or decrease your legal advertising is the question of whether you view your law firm’s advertising as an investment or an expense. During a downturn we often cut expenses, but should still invest in our future.
Economic slowdowns offer an especially ripe investment opportunity for need-driven products and services organizations to increase their top-of-mind awareness and acquire new clients. Most consumers will reduce their personal spending on those goods or services that they want, but will not forego those that they need. Personal injury law is strictly a need-driven business.
Personal injury law firms that take advantage of the emotional reactions of their competitors, who cut back on their advertising, and continue to keep their law firm’s name in front of prospective clients when they need them the most, will ultimately be the winners during a recession and well beyond.Press Release Contact Information: Rene Perras