Should You Keep Marketing and Advertising Under Current Conditions?
Aug 21, 2020
Well I wish I could give you an unbiased position but that’s a little difficult given our line of business. But yes, you should.
Since I am not an expert on this subject I did some online research and will report that. Here’s some highlights of what I found. After that I have listed links to a few articles you may find helpful.
What are the possible repercussions of eliminating your marketing?
In 2008, Millward Brown shared evidence that 60% of the brands that went ‘dark’ during an economic downturn (no TV ad spend for 6 months) saw ‘. Brands that cut their ad budget at a higher rate relative to their competitors were at a greater risk of share loss. A 2001 analysis from Malik PIMS showed that an increase in spend on marketing and R&D was associated with business success during downturns. It estimates that brands who go dark to save costs will see a 39% reduction in brand awareness and delay recovery after Coronavirus.
Here's an interesting story about reducing your marketing during a downturn:
In the 1920’s, Post was the category leader in the ready-to-eat cereal category. During the Great Depression, Post cut back significantly its advertising budget and rival Kellogg’s doubled its advertising spend, investing heavily in radio and introducing a new cereal called Rice Krispies, featuring “Snap,” “Crackle” and “Pop.” Kellogg’s profits grew by 30% and the company became the category leader, a position it has maintained for decades.
And here is a summary of some of what you will find in the articles below:
· Instead of decreasing your budget you should reprioritize it.
· Improve your online presence, particularly with social media.
· Create helpful content for your industry.
· Some of your competitors are ramping up their ad and marketing spend.
· There is less competition now so your message is more effective, if done properly.
· Focus on building relationships instead of selling products.
Here are some helpful articles:
Canadian Marketing Association
I hope you find some of this information helpful in planning your marketing efforts during these challenging but opportunistic times! To quote Winston Churchill:
Next time we will look at some strategies for advertising and marketing in a downturn.