Don’t turn off the taps just yet – Kate
The cost of living is rising. You know it. I know it.
From the shrieks heard in the supermarket isles at the price of a Lurpak tub.
Chokes at the petrol station pump, and pet food costs that quite frankly make me consider severing an arm and a leg to suffice.
We all know it.
Brands are suffering and it’s a tough time for both businesses and consumers.
I understand that advertising is often seen as a luxury and it’s often first in the line of fire when cutting costs.
But, don’t turn the taps off on your advertising spend just yet.
Here’s 4 reasons why.
- Reduced Advertising = Reduced Awareness
I don’t mean to be rude, but you’re not that important to people. We all have our own weird
and wonderful lives. People need CONSTANT reminders of your brand, otherwise they will
forget you. You disappear from their lives, they disappear from yours.
- Grow your market share
Many people are cutting back on their advertising, which makes space for lower advertising
costs and therefore more opportunity for growth for the clever buggers like you, who would
never switch off their advertising.
This makes it the perfect time to take advantage of lower costs and use your current budget
to increase your share of voice, brand awareness, lead generations and conversions.
- Build some brand love
Your product or service is the same, but your customer is different.
Use this time to build some brand love. Tell your customers that you know things are tough,
you want to help, you’re on their side.
We’re currently seeing examples of this with Tesco’s clubcard pricing and price match ad
campaigns. Tesco know that consumers are price conscious and tightening their belts, with
the strapline ‘every little helps’ and price match guarantees, shoppers know that Tesco is in
their side and they are getting the best price.
- Reap the benefits in the long term
In case studies going back a century, the story is always the same.
Companies that maintained ad spend, or even increased it, during a recession saw little
advantage during the long, hard months of the squeeze.
As soon as the green shoots of growth appeared, their growth was spectacularly superior
versus competitors that cut back during the recession.
Analytic Partners studied over 700 brands in more than 45 countries and found that most saw an ROI increase during the last recession. Research by McGraw Hill found that companies who maintained or increased their advertising grew by 275% more than companies that held back. According to an MSI report, most UK finance directors suggest that businesses should increase their advertising spending during difficult times.
In times like these, your brand positioning is more important than ever, it’s vital that your message is carefully delivered, reflecting the way that your customers are feeling.
We’ll work with you to strategically craft and advertising campaign to help achieve your
business goals. Get in touch.