We get it.
This is an unprecedented time. Millions are at risk of losing their livelihoods in the wake of COVID-19. People are scared, they’re unsure and possibly less willing to make any big purchases. So you, and other business decision makers out there may decide that there’s no point in advertising. For many of you, you’ll be unable to deliver certain products or services due to the current coronavirus lockdown rules.
You’re not alone in feeling this way. On our sister site, broadbandmoneysaver.com, we reported on Sky’s recent decision to halt non-critical broadband installations until lockdown rules ease up.
BUT… they’re also taking names on their website ready to fire through orders as soon as the opportunity comes. They’re not sat on their hands. Any their content teams have worked to make sure that the world knows it.
Now Sky’s situation is that they physically cannot justify sending engineers to customer homes. That is a hard limitation and they’re still working to maintain their brand and protect future sales. When customers are able to buy again, they will have Sky’s name on their minds. But what about your brand?
If you’ve been building your name over time, it’s vital in our opinion that you don’t contract completely.
“When times are good you should advertise. When times are bad you must advertise.”
The overall ‘noise level’ within your industry is reducing right now. Cost-Per-Click is becoming cheaper on social media platforms. This is a great time to build confidence in your brand. This is an opportunity to project the image of corporate stability during such an uncertain time.
When companies reduce their ad spend, their brand will lose ‘share of mind’ with consumers, which could certainly reduce their potential future sales. An increase in “share of voice” typically leads to in an increased market share – and therefore healthier overall company performance.
Right now, we’re operating campaigns across Google, Facebook/Instagram and LinkedIn. Results are delivering in line with our long term growth strategies.
Following the 2008 recession, ad spend in the U.S. dropped by 13%. Broken out by medium, newspaper ad spending dropped the most at 27%, radio spending dropped by 22%, followed by magazines with a decline of 18%, out-of-home by 11%, television by 5% and online by 2%.
The cost of advertising therefore is dropping. Lower rates create a ‘buyer’s market’ for brands such as yours. Studies show that traditional advertising can also deliver greater ROAS (return on average spend) during a recession.
Let’s consider the mighty Amazon. Jeff Bezos increased sales by 28% in 2009 during the last ‘great recession’. They delivered many new products during the slowing economy, most notably with new Kindle products which helped to grow market share.
Amazon customers bought more e-books over Christmas in 2009 than printed books for the first time. In the minds of consumers, Amazon became an innovative company that was worthy of long-term trust.
Sam Walton, the founder of Wal-Mart was asked what he thought about the recession. He simply responded:
‘I thought about it and decided not to take part’
We’re not suggesting that you charge headfirst into a crusade to beat the recession; we’re simply recommending that you don’t allow your brand to grind to a halt.
If you want to keep the fires burning at a reasonable cost, we’re here to help. We’re not stopping either.