Amid shortages, production slow-downs, a lack of workers, etc., many businesses have either stopped spending on advertising or are afraid to spend. The fact is, choosing not to market during the pandemic will hurt, not help, your business.
Like Henry Ford once said, "Stopping advertising to save money is like stopping your watch to save time." Although you won't be actively spending money reaching your audience, you will lose income on the customers that could've been a sale.
Here are our top tips for staying top of mind with marketing, with reasons why you should continue marketing even when the going gets tough.
What Past Times of Turbulence Have Taught Us About Advertising
Between economic recessions and events of uncertainty, it's common for businesses to clench their fists on their budgets until the cash flow is running smoothly again — but if the past has told us anything, you should never stop advertising.
Take, for instance, these seven companies that thrived in the 2008 recession:
- Netflix
- Citigroup
- TeamLogicIT
- MailChimp
- Groupon
- Lego
- Warby Parker
While most of these are some of the biggest companies in their industry today, they certainly weren't at the time. Some were just starting out like Groupon, and others — like Netflix — were reinventing themselves to better fit consumer needs. It was a risk, but it worked because they never stopped advertising.
Moreover, studies have also emphasized the importance of increasing ad spending during tough times. The report evaluated studies from 1990, 1980, 1970, and another that combined the 60s, 50s, and 40s.
It found that:
- By balancing long-term promotion and short-term sales, brands like Jif and Kraft salad dressing grew by about 57% and 70% in the 90s after increasing their ad spend during the recession.
- Those who advertised aggressively during the recession experienced 275% more growth in 1985 than those who did not.
- A 1970s study concluded that companies that advertised during the recession saw more remarkable results in growth during and after the recession.
- A study tracked businesses in the recessions of 1949, 1954, 1958, and 1961. It found that companies that cut back on advertising saw a greater drop in sales and profits.
Why Consistent Advertising Will Get You Ahead Right Now
It's true, there are fears of spending right now. Then there's the fact that many companies face shortages or limitations. However, advertising during a crisis is the best thing that can be done right now.
Why? It's simple. You must always be in the consumer's mind. Even when they can't purchase your products and services as much or even at all, they will remember you when the time comes. Your brand will come to mind as soon as their spending does pick back up.
For shortages and limitations, in particular, you should still advertise but communicate the struggle with consumers. Explain what's going on, caution about slow-downs, and provide them with tracking information.
What's more, you experience these three benefits when advertising during the pandemic/economic uncertainty:
- Your company looks more stable to investors by continuing to advertise
- Your voice is louder and reaches more people, with fewer companies advertising
- The market is less competitive, so ad spaces are more affordable!
Communicate with Your Customers
Communication isn't just important when customers are interested in products affected by shortages. Communication with consumers is ALWAYS important—at least 64% of consumers personally.
This is because good messaging is important right now. People want to hear about how we're going to get through this — better yet, get through this together. Just add the following to your feel-good messages:
- Tell people what they need
- Explain what you have to offer
- Address the times and be relatable
Think Outside the Box
Pivoting and adapting is sometimes the best thing you can do. If you don't usually do social media marketing, try it! Find new ways to reach customers. During the pandemic, many industries pivoted to work around the changes.
For instance :
- Restaurants sold "cook it at home kits."
- Online options became more prevalent.
- Businesses allowed people to work from home.
Are there ways to work around your current limitations? Showcase what you can offer. For example, car dealerships are pushing used cars since new ones are less available.
The key is to find ways to advertise that cost less. A great example is cause marketing.
You can support those in need around you by encouraging consumers to shop at your businesses and donate. It will make them feel like they're contributing to something more important than just shopping for themselves.
Stay Top of Mind Until Things Get Better
TV advertising is always a good way to get in front of your audience. Not only does it have a 90% reach among U.S. adults, but TV consumption increased during the pandemic. One research company found that 42% of surveyed people reported watching 'a lot more' TV than they did prior to the outbreak.
And that momentum continues as more people spend time at home. What's more, TV commercials are more affordable than you think! So, keep advertising what you have to offer. Even if you are just keeping your message light, you can still communicate with consumers and make a meaningful connection with them. Reach out to Western Mass News Marketing for advertising during the economic uncertainty.
