The Power of Advertising During Economic Downturn
“Stop advertising to save money is like stopping watch to save time”- Henry Ford
In a world full of competition, nearly everyone has been in a crisis situation at least once in their life. There have been indicators for some time now that a recession is imminent. However, our instincts may tell us, “when times are tough, cut cost,” as opposed to what we ought to do. The evidence, however, is vast, corroborating, and goes back nearly a hundred years. Brands that continue to advertise during an economic regression will outperform their competitors in the long run. As Henry Ford once said, “Stop advertising to save money is like stopping watch to save time.” It is confirmed that many of our natural tendencies often override our logical brains. But one piece of advice offered by experts in any field is always the same; Stay calm, the most important thing is not to panic when facing any crisis.
The brand, which invested in building a share of voice during the unexpected time, reported much better profit growth in the following years. As some brands choose to avoid spending on advertising, it has become easier for other brands to invest in and share the profits in voice sharing. Advertisers who ignore this information are likely to retract their ads, prioritizing short-term savings over long-term value as they always do. With less competition in the market, advertisers don’t have to buy a lot to maintain their SOV. In the current scenario, investing in media share can help brands drive long-term success.
Do not take this information from me, take from A study obtained by the Institute for Practitioners in Advertising claims that brands maintained their share of the voice at or above market share during a regression; the increase in long-term profitability is likely to outweigh the short-term decline. Also, if you reduce your advertising, you will ultimately lose the SOV, which you will have to make it up later. This means your brand will catch up and, as it is always more difficult and expensive to build than to maintain. In the end, you will spend more in the long run as this will only add to the initial short-term financial gain.
Remember one thing, you’ve worked hard and spent time and money building your brand, so this is not the time to let it go!
When advertising, brands have to follow their audiences especially in this tough time. Brands should strongly consider location-based solutions which allowing them to engage with geographically relevant placements and messages that will be able to target relevant audiences. With more and more people returning to the streets every week and more markets opening up, it’s the right time for brands to emerge and welcome consumers back. During such a downturn, the brands that remain active in the market will win and outperform competitors. In addition, when consumers hear from a brand even during a crisis, they identify with the purpose of the brand and will ultimately increase trust and loyalty for the brand itself.
It’s time for you to show up!!!
