2019 has been an outstanding year for the US economy and businesses of all sizes. Gross domestic product (GDP) is up, personal income is up, consumer confidence is high, and interest rates have stayed low. Most US businesses have been happy to revel in the glory of a “Goldilocks” economy – a rare time when our economy has been just right!
But before we all go laughing our collective way to the bank, know that Uncle Sam will be looking for a taste of that pie. And you might be getting slammed with some real income tax increases if you’ve done well this year.
- One way to lower your taxable income (and use it for business growth) is to maximize your business income deductions, with increased spending on advertising.
Whether you’re a marketing director, advertising agency, or just a Mom & Pop shop, December is the perfect time to move forward with some serious advertising purchases.
Why is December a Great Time to Buy Advertising?
- Advertising is a write-off, and you’ll need it this year!
Talk to your tax professional about the specifics, but generally speaking, any advertising you do will be a write-off. To take those valuable deductions in 2019, most companies will need to spend those dollars by December 31.
- Sales reps are eager! (So are their bosses.)
As the fourth quarter comes to a close, some sales reps are looking to meet monthly, quarterly, and annual goals. December is a slow month for advertising sales reps because:
- Many businesses feel their ad budgets have been spent for the year, so there is little new business.
- Decision-makers leave on holiday or become harder to reach.
Sales reps are left struggling to find those last few sales to earn their bonuses. December is a PERFECT time to ask for a bulk discount or other special prices. Those reps and their superiors will do what it takes to get your ad buy! If we were in the real estate business, we would call it a “buyers market.”
Sales managers, supervisors, and corporate notables are also looking to end the year with a bang. So get aggressive and ask for a big campaign guaranteed at December’s price. It never hurts to try!
- Use it or lose it.
Some organizations are planning their ad buys for next year, right now. If you haven’t spent your ad budget to the last penny, you’ll be getting less to work with next year. Go ahead and call your favorite advertising sales rep on December 23, they’ll love you for it!
- Many companies offer special ad prices.
Again, in a rush to meet those numbers goals, most advertising media will offer special holiday pricing. Take advantage of them! You’ll get more bang for your buck, and it might be the last time you can get ads at these rates. Some companies will increase their pricing come the new year.
- Most newspapers raise their rates every January, like clockwork.
- Advertising makes a lasting impression this time of year.
Schools close for holidays, employees take vacation time, and families gather together. There’s a reason you notice more automobile advertising on television this time of year…people are spending more time at home and at social outings than during the rest of the year. Careers and education are set aside, leaving more time and energy to be receptive to advertising.
But even if you visit our blog for marketing inspiration, we know you’ll rock through your 2019 income taxes because you’ve maximized your advertising write-offs, and positioned yourself well in the market for next year.