Challenging and turbulent times force us to rethink our strategies and adapt to the situation. When the going gets tough, businesses take a hit. The coronavirus crisis, for example, has triggered an unprecedented global shutdown, which has led to an inevitable revenue slowdown. Lower demand for certain products and services is a blow to businesses. The natural instinct is to cut the marketing budget until the crisis blows over.
Hunkering down, however, brings its own problems. If a business drops off the radar it is easily forgotten about in the mind of the consumer, which weakens a brand. Whereas consumer studies show that if you continue to advertise during an economic downturn, it can help a business survive a recession. Here are 5 reasons why recession advertising may help you to retain your market share or even increase it:
If you are smart and creative with ad campaigns during a recession, you have the potential to reach new customers. Highlight what value you offer customers. For example, Proctor & Gamble focused on “value” when advertising Bounty kitchen roll during the 2008 recession with a slogan: “Clean the mess with less”. The product wasn’t cheaper than bargain brands but the ad campaign suggested this “quality” product lasted longer than other kitchen rolls and was value for money, which appealed to customers on a budget.
You can use market weakness to strengthen your brand. If your competitors pull back on marketing and go quiet during a down economy, this is an opportunity to use your advertising “voice” to be heard and attract attention. It’s a good time to take your brand to the next level. At TRCREATIVE, we understand the power and importance of great branding. A strong visual presence attracts attention, never more so than when your competitors take a back seat.
As the global coronavirus crisis took hold, mobile phone firms reported a 30% rise in internet traffic. If people are spending more hours online, it is a good time to launch your digital advertising campaign. Advertising when other businesses do not also sends out a message that you have a strong and stable presence in the market through uncertain times. This increases consumer confidence and attracts more people to your brand.
If other businesses put their marketing campaigns on hold during a recession, it has a knock-on effect. There is less competition on advertising channels, such as Google and Facebook. This means the cost to advertise online is reduced. As a result, you spend less per click on paid marketing campaigns. If you want to make the most of digital marketing opportunities, the team at TRCREATIVE are happy to discuss the best approach.
Tap into the mood of the consumer and show awareness. Use a recession to reinforce business core values, such as integrity and compassion. These values can underpin a positive advertising campaign. For example, carmaker Hyundai adopted this approach during the 2008 recession. Its ad campaign delivered this message: “Now finance or lease any new Hyundai, and if you lose your income in the next year, you can return it with no impact on your credit.” Showing compassion and understanding worked. Hyundai sales jumped 24% the following year. In uncertain economic times, people need to feel reassured and understood. If you can do this as a brand, it reinforces an emotional connection with consumers.
In conclusion, continuing to advertise during a recession is a smart move. Take advantage of lower advertising costs while getting the edge on competitors. The economy will bounce back. When it does, you don’t want to waste a moment in recovery mode. You want your business to be up to speed, experiencing strong sales off the back of successful advertising.
At TRCREATIVE we are here to help you navigate your way through a downturn. Don’t hesitate to call us on 01270 610441 to discuss digital marketing or explore other ways we can help your brand stand out in difficult times.