We’re poised to come back strong, and quickly, as the world begins to reopen.
We have a history of thriving in recessionary economic times. We grew 42% in 2002 in the months following the post September 11, 2001 economic meltdown. In 2008 and 2009, in the depths of the Great Recession, we launched 60 separate new markets.
No doubt that times are tough! But as a company, AMP is built for times like this. Our business model fits a recessionary period better than any business model in the media industry. Why is that?
- We sell directive “Moment of Truth” marketing. We sell the last items seen after a consumer decides they’re going to buy something, but before a consumer selects a particular business to buy from. A consumer never types in a business “near me” search merely out of curiosity or for entertainment; nor does a consumer pick up a phone book merely to browse. Those actions are taken by people serious about calling, visiting and spending with someone very shortly, often in the next few seconds. For business owners, this short time when search turns to selection is the “moment of truth.” Most media companies sell advertising to create a need or to create awareness – that’s radio, billboards, direct mail, newspapers, magazines, etc. We sell advertising to direct purchases. That’s an important distinction. In a tough economy, we are benefitted by selling the essential advertising that does not get cut, the advertising that is directive in the ‘moment of truth’ when at the last second search becomes selection. I’m glad I’m not a media company CEO who is trying to sell lead a team selling billboard or radio advertising.
- We’re economically diversified. We sell to new car dealers, but also used car dealers. We sell to new home builders and also to home repair companies. People aren’t going to stop having their hair cut, their cars repaired, their landscaping done. People will need attorneys to settle wills and file divorces; accountants to file taxes, dentists to fill cavities. Some sectors of the economy will continue as though nothing has changed, some will be hard hit, and others will thrive. It’s great to be able to sell to churches and liquor stores, fast food restaurants and fitness centers, insurance companies and funeral homes. We’re benefitted by our economically diverse advertiser base. I’m glad I’m not a CEO of a media company that sells exclusively to new car dealers, or to the commercial construction industry, or to other sectors where financing will dry up and new sales opportunities will be reduced to nearly zero for the next few years.
- We sell our advertising solutions at the lowest rates in the entire industry. We’re a low dollar, high volume advertising sales organization built for selling Main Street America – the butchers, bakers, and candlestick makers. Nobody undercuts us on price. Our whole business is built around working hard to sell and support highly effective and inexpensive advertising solutions that become an essential part of their business. Competitors who built their business models around selling a small number of customers a set of very high priced products are going to hand us market share. I could name the dozens of competitors who adopted that common model, which works well and looks very attractive when the economy is booming. I would certainly not trade seats with their CEOs these days, because our low dollar, high volume model is about to be validated as it was in 2002, 2008, and 2009.