Don’t worry about daily dips in the markets, invest in advertising.

This year was the third largest daily drop for the Dow in absolute terms of points. Apart from the fact that the Dow is a questionable index anyway, here is the reason why the movement of the points is less worrisome than you might think.

The trend of rising markets over time

Keep in mind that, like economic growth and inflation, most stock markets tend to rise over time if you look at longer-term charts that span years or decades. Yes, a market correction can take a few years, or even a decade, when the market is not reaching new highs, but in general it is not surprising that the markets are at their highest level, such as the Gross Domestic Product (GDP ) or the Price Index is also likely to be at its highest level in most cases.

For example, if you have a child and grow in height 0.01% every day, literally, every day of your childhood, a headline can read that today they have shown the greatest increase in height of a day. That would be true, but it would not be news, they are only basic mathematics and, in a sense, the fall of today’s Dow point is also not really news.

The critical thing here is that it is not because something terribly unusual is happening, but we are taking a fairly standard percentage of a growing number and turning it into a wall that hides our product. A 3% drop in one day is quite unremarkable for the stock market, although we may not be accustomed after some unusually quiet periods, even as recently as last year.

The double-edged sword of liquidity

In the same way that you do not care about the value of your home or your car on a daily basis, you should not worry too much about the daily fluctuations of the stock market when buying advertising space. The benefit of liquidity is that you can always access your investments and buy or sell when necessary. The challenge of liquidity is that you can always access your investments and buy or sell when you really shouldn’t be. This is one of the reasons why the average investor can perform better than the market in general when investing in advertising.

For this reason we must turn the crisis into an opportunity, investing in our brand and if in any case it is absolutely necessary to cut our advertising budget, we must do so strategically by choosing the marketing tools and both traditional and digital media that have greater impact on our audience. Creativity has a fundamental task in times of crisis, generating novel strategies.



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