Never take your foot off the pedal, Even if you are going through a recession.
How marketers react to recession in terms of advertising?
Marketers severely cut down on their advertising and media budgets OR rationalize their spends by shifting focus from traditional media & spending more on “accountable” & measurable media like digital and direct marketing / activation programs OR re-evaluate their media mix to seek ways to improve efficiency by moving to a cheaper media pitfalls.
Moving out of a media which effectively reaches the target!
However..Multiple studies confirms that the best strategy in terms of achieving long term ROI is to increase / maintain brand visibility during an economic down turn.
Fact is that brands who cut down spends during recession actually have to spend exponentially more to regain consumer mindshare when market sentiments change. Advertisers who maintained advt during recession continued to grow sales while those who cut flat-lined or lost business.
The least a brand can do if it cannot increase / maintain spend levels it should ensure SOV relative to it’s competing brands. Focus spends on strong high growth / return brands. *
Multiple case studies bear testimony that even if by advertising during a recession period does not necessarily translate into immediate sales…It actually creates a residual equity in the consumer mindspace. This eventually converts into sales and ensures higher growth rate for the brand when consumer sentiments change and spending resumes. The most expensive piece of asset that any brand has to own and maintain…Consumer mindspace and mindshare!
One should change frame of reference…Instead of seeing recession as an adversity one should see it as an opportunity…It helps to focus on their high priority markets during the downturn. It helps to reinforce a brand’s perceived value during recession
During recession, advertised brands appear safer & more aspirational to consumers**
Summing up ....
Maintain SOV relative to competing brands. The key is to track their past media spending pre, during and post recession This will help us identify the prospects for selective targeting Reinforce a brand’s perceived valuePerceived value is closely related to the ratio between a brand’s SOV and SOM. Consumers are more likely to purchase a trusted and known brand. That level of trust is maintained via continued advertising support. Critically, this bond with the consumer is strengthened by advertising during a recession
A recent example of this cadre is Jet Airways, who has come up with a brand TVC featuring SRK in this adverse time for airline industry. When every airline is trying to save each and every penny, Jet Airways came with a brand TVC. The reason could be plenty, to capture the lost market share or to keep the leadership position going or to fight back Kingfisher etc. but the idea is they came up with a campaign during recession or tough time in airline industry.
Summing up ....
Maintain SOV relative to competing brands. The key is to track their past media spending pre, during and post recession This will help us identify the prospects for selective targeting Reinforce a brand’s perceived valuePerceived value is closely related to the ratio between a brand’s SOV and SOM. Consumers are more likely to purchase a trusted and known brand. That level of trust is maintained via continued advertising support. Critically, this bond with the consumer is strengthened by advertising during a recession
A recent example of this cadre is Jet Airways, who has come up with a brand TVC featuring SRK in this adverse time for airline industry. When every airline is trying to save each and every penny, Jet Airways came with a brand TVC. The reason could be plenty, to capture the lost market share or to keep the leadership position going or to fight back Kingfisher etc. but the idea is they came up with a campaign during recession or tough time in airline industry.
* Source: Millward Brown “Marketing During Recession, May 2008
** Source : Paul Dyson, D2D decisions , March’08
Moray Maclennan, Chairman M&C Saatchi Europe, “How to get ahead in recession”, Feb’08
