Bravery in a Crisis….No Time to ‘Go Dark’
Understandably, during a crisis, marketing budgets tend to be reduced, or even slashed completely. A recent WARC article references an Ebiquity survey revealing that 81% of brands have cut their advertising investment for the current year, with out-of-home and cinema spend unsurprisingly worst hit. The same article reveals that a reduction in spend if £4bn is expected in the UK due to Covid-19, according to the latest Advertising Association/WARC expenditure report.
But there is much evidence that this is exactly the wrong thing to do at such a time. In a recent Bord Bia webinar, Eileen Bentley made a case, supported by academic research, for adopting a hybrid defensive/offensive strategy during a time of crisis: Balancing the control of operational costs with judicious marketing investment to facilitate faster growth on emergence.
Rarely a man to mince his words, Marketing Week’s Mark Ritson argues strongly in favour of brands investing in advertising during a recession. With many others reducing their spend at such times, he claims that there is an opportunity for budgets to stretch further at such a time, resulting in a far greater share of voice for those who are brave enough to invest for the future. There is much evidence to support the view that those investing in marketing during a crisis (or recession) bounce back much faster afterwards.
Of course, many companies have had to change course to navigate the current crisis. For some this means reaching new consumers not yet exposed to your company or products, so there is certainly a new opportunity to engage with these. It’s wise to think beyond marketing to existing consumers; consider how you might engage these new or potential consumers too.
Some commentators advocate widening the communications approach further still at the present time. In a recent Marketing Institute webinar, well-known entrepreneur, marketer and author Rand Fishkin, encouraged companies not to restrict their marketing focus to current and potential consumers but to take a broader view of their ‘audience’. Encompassing the media and the wider community, this broader audience has significant influence on a brand’s target consumer groups and can therefore, Fishkin explained, help to amplify the message for brands over time.
Clearly there are many experts arguing for continued investment in marketing activity and ongoing communication rather than ‘going dark’ during a crisis. But, more than ever, informed decisions are needed to avoid opportunistic spending in the wrong area and ensure that you invest wisely and for the longer-term. Some great ideas were shared in the Brand Communications webinar last week (accessible here). Crucially though, the activities you invest in should all be informed by a strategy that takes into account our unanticipated and rapidly evolving market environment. If you haven’t already done so, now is the time to revisit your commercial marketing strategy and sense-check that it is relevant for the current times.
Bord Bia recently delivered two webinars aimed at helping clients to evaluate their strategic decisions in light of the Covid-19 crisis. Held on 7th & 21st May, both webinars can now be watched back here. Webinar 1 is called ‘Evolving Where to Play and How to Win for 2020 & Beyond’, whilst webinar 2 is called ‘How to Win - Evolving Your Strategy in a Rapidly Changing World’.
Sources:
Article: WARC, A playbook for strategy in a recession, 12 May 2020
Webinar: ‘Evolving Where to Play and How to Win for 2020 & Beyond’, 7th May 2020, Bord Bia https://www.bordbia.ie/industry/covid-19/covid-webinars/previous-webinars/
Webinar: Marketing Week –Mark Ritsom: ‘Marketing in a time of coronavirus’ webinar, April 2020 (via Xeim Online Learning)
Webinar: MII Webinar Series: ‘Stay Strong, Adapt & Survive’ with Rand Fishkin, 14th May 2020 www.mii.ie
Report: The WARC Guide to Marketing in the COVID-19 recession (via Warc Special Series, Marketing in the Covid-19 Crisis)