Marketing in Tough Times
As we near the latter stages of the year, we find ourselves in a challenged economy. One which is being fuelled by a number of factors including increasing high cost of living, sluggish income growth and low consumer confidence.
While there are encouraging signs on the horizon, the reality right now is harsh. Consumer spending is down on last year, as people look to tighten belts as uncertainty lingers.
However, it is more important now to maintain a strong share of voice—remind consumers that you are still around, and that you are still a brand of legitimate existence. We have evidence that advertisers, who at least maintain a strong presence in market, benefit from strong market share gains and long-term profitability. We have the brands and media channels to help you get through this. Endure the storm with us, and come out the back of it in a much stronger place.
“Stopping advertising to save money is like stopping your watch to save time" Henry Ford
Maintaining a strong presence in turbulent times can position your business in a much stronger place when the market recovers. Data from the Analytic Partners’ “ROI Genome” project, looking at the last recession, shows that it is very important to maintain or even increase marketing budgets during times of financial pressure. Brands who retained a strong market presence tended to bounce out of recessions much stronger than their competitors.
Advertisers who maintained or grew their advertising budgets in recession:
54% improved ROI for those who maintained spend
60% Improved ROI for those who increased marketing spend
52% sustained ROI growth over 2 years
+17% Incremental sales for those who increased media spend
This is a great time to grow your share of voice. But, what is Share of Voice?
Share of Voice (SOV) is a measure of your advertising share compared to competitors—it’s your brand visibility.
In normal times, to increase your SOV, you would need to increase your advertising spend.
However, in tough times, many brands cut their advertising spend—effectively removing themselves from the front of mind awareness of their consumers.
This presents a big opportunity to grow your SOV by maintaining your advertising spend. Your brand would remain visible, while those who stopped or reduced their advertising would lose front of mind awareness
To read more insights on Marketing in Tough times click here to speak to you one of our team!
Source: Analytics Partners ROI Genome Project