The effects of Covid-19 are beginning to affect our economy and our society. It is very easy at times like these to pull back and hunker down. When people start to think the economy is falling apart and they pull in the reins it becomes a self-fulfilling prophecy. With every challenge comes opportunity, and advertising is no different. There are many benefits to advertising in a down market which should be strongly considered.
Your Competitors
We know that companies will cut advertising from their marketing in the coming weeks and months. Some of them will be competitors. This is a great opportunity to gain market share. If you continue to advertise and build your brand you will capture more of the available customers. With advertising down there will be less clutter. And when things improve, you will be the company people remember.
Even though you may be feeling the pinch, media companies will be impacted as well. Now is a good time to look for bargains. Or, you may be able to get positioning that previously was unavailable or out of your price range. This is the time to negotiate.
Positioning/Offers
Instead of focusing on yourself, think about the mindset of the consumer. A bad economy does not mean that no one is buying, just that they are purchasing differently. Consider approaching your prospects with a different message. They may be spending time looking at price points, reviews and comparisons to make sure they are getting the most for their money. You might offer price guarantees or product warranties to help the consumer with their decision.
Advertising during lean times helps your brand project corporate stability. People like buying from brands they think will last. It gives them confidence. They feel that the company has a commitment to their product or service and their customers. Advertising in a down market helps position your company as a leader.
Build a marketing strategy for a bad economy. You may want to change up your mix of branding and promotion. Consider short-term price incentives, coupons or special promotions to boost sales and market share. Regular pricing can return when the economy picks up.
Advertising Is a Necessity
Marketing and advertising are not optional expenses, to be picked up and put down on a whim. They are necessary business expenses central to the growth of a company. Advertising is an investment in the future of your company. You may want to look at sponsorships or other out-of-the-box advertising methods. Your objective is to cut the cost of customer acquisition, not cut costs completely.
We have all heard the expression “this too shall pass,” and so will the current pandemic and its effects on our economy. When it ends there will be no sign from our leaders or a landmark event to mark the occasion. Consumers will continue to need your product or service. And when the economy does return, marketers who continue to advertise in a down market will reap the benefits.
Perhaps the best quote about advertising in a recession came from Sam Walton, the founder of Wal-Mart. When asked in 1991, “What do you think about a recession?” he responded, “I thought about it and decided not to participate.” You should do the same! (By the way, within 2 years Wal-Mart stock was up over 200%!)
