Let’s admit it, the current global pandemic is challenging people from all spheres of life. While it has drastically changed businesses all over the world, it is also changing the way we work, work out and spend time with our family.
With fear gripping the entire world and people accepting new realities, there has also been a whiff of an economic recession. While business slowdown is inevitable, the fear of declining revenue has seen many brands cut back in various areas with ad spending being predominant. Slowly a sharp downturn is being witnessed in the advertising industry.
According to a survey conducted by Interactive Advertising Bureau, 24% of brands have paused all ad spend for Q2. Digital ad spend is down 38% and spend on traditional channels is down 43% in March and April.
Advertising during Recession – Success Stories
So, is going into pause-mode the ultimate solution? Well, if you really want to survive these dark times, don’t hibernate. In fact, history is testimony to the brands that actually thrived during recession. Research also suggests that maintaining or raising ad spends during an economic slowdown can result in higher sales once the economy starts recovering. However, the trick remains to tailor the right message to the right audience to boost confidence. Here are few examples:
- During the early 1990s Recession in the United States, McDonalds’ had decided to decrease its ad spend. Pizza Hut and Taco Bell took advantage of this situation and were able to increase sales by 61% and 40% respectively with McDonald’s sales decreasing by 28%.
- During the 2009 Great Recession when businesses were cutting costs, Dominos spent millions on advertising and launched a new recipe and technology which helped in increasing the brand’s stock percentage. Most major fast food chains were struggling to recover at this time.
- During the 1920-21 Depression, a renowned cereal brand Post, made advertising cuts. Kellogg’s took advantage of this situation and increased their ad spends and launched a new product. Not only did their profits grow by 30% but they also became the cereal leader, and have maintained the position till date.
Tips to Create Interesting Content during Recession
Undoubtedly, there are many advantages of advertising and increasing budgets during a weaker economy or global pandemic. Keep in mind that people have more time to scroll through social media, watch advertisements and play games. This is the time when millions of people see and read more. While you can cut through the noise level, it also gives you a chance to take advantage of price drops by using mediums that provide value.
According to a recent Nielsen Report, TV viewership has hit an all-time high of 1.2 trillion minutes during the lockdown in India. The consumption is 37% higher than the pre-corona period.
Here’s how you can create interesting content:
- Offers discounts, coupons and gift vouchers
- Organise interesting trivia games and challenges to entertain your audience
- Create an awareness campaign
- Offer free resources that will educate as well as entertain your target audience
- Boost social media engagements with giveaways and live sessions. It is also a great way to stimulate your audience’s creativity during such times.
- Find interesting ways to collect new leads that you can target once your business gets back to normal
Don’t completely put off your marketing strategy or become dormant, acknowledge the current situation and adjust it instead.