Economic uncertainty and recession potential can give rise to an urge to clamp down on spending for both consumers and companies. Unfortunately, advertising and marketing are often among the first areas to suffer the most significant business cutbacks. Of course, no two downturns are the same, but studies show that consumer and business behaviors follow similar patterns. While bold reductions in advertising and marketing spending could save the business in the short term, turning off external awareness efforts can wreak havoc on long-term brand health and profitability.
Multiple studies analyzing advertising habits during previous recessions of the 1980s and 2008 have proven that companies who advertise during recessions can come out ahead in the long term and have a more significant opportunity to edge out the competition. History reminds us that economic downturns are not all doom and gloom, consumer and business habits can be somewhat predictable, and plenty of opportunities still come with a slower economy.
Now is the time to hit refresh.
Since we are all riding the same rollercoaster, Envoy recommends keeping your marketing and advertising on track by using the recession as an opportunity to update strategies, tailor messaging and review which communication channels are most effective in reaching target audiences. Perhaps untapped communication channels are more accessible or emerging in the slower economy. Envoy is always ahead of the curve with emerging and cost-effective options. Our team can review current strategies to identify space for growth and enhanced results.
Envoy also analyzes and forecasts current and future consumer and business trends when crafting tailored strategies. This vital research step helps set the foundation for an effective plan to gain the absolute best results. When it comes to the refreshed approach to your target audience, sensitivity to the economy could equal added humanity and generosity in messaging and strategies. How is your brand helping, or how does it uplift others who are making an impact?
If budget reductions are unavoidable, trim instead of cut.
Think of making any potential budget cuts with the precision of a scalpel instead of a cleaver to preserve and continue brand growth and recognition. Brands that remain sensitive to the current economic situation, relatable and relevant stand to gain long term. Instead of pressing pause, leaders can still reduce spending through a more tailored strategy. We also recommend regularly reviewing plans to ensure consistent alignment with the evolving economic climate.
Increase or establish your brand’s share of voice.
While some companies cut advertising dollars altogether, this provides a golden opportunity for organizations to potentially increase their share of voice in the market or to defend an existing share of voice by staying online and in view.
For example, Netflix took the ball and ran with it during the 2008 recession. It campaigned with tailored messages directed at budget-sensitive consumers seeking cheaper entertainment options. This strategic move resulted in incredible growth for Netflix. The company filled the market share left open by competitors who went offline, securing a larger piece of the pie in the home entertainment market for years to come.
Tap into our extensive expertise.
Envoy has helped clients through economic ups and downs for the past 30 years. Our award-winning team of passionate and talented strategists can work within any budget to gain results. So how will you rise to meet the recession? Contact us to tap into our extensive expertise and explore the possibilities.