Skip to content
Nicolesmagicspatula

Nicolesmagicspatula

We know finance

Primary Menu
  • Business News
  • Business Development
  • Business Networking
  • Business Knowledge
  • Finance Companies
  • Finance Analyst
  • About Us
    • Advertise Here
    • Contact Us
    • Privacy Policy
    • Sitemap
  • Home
  • How Is Your Brand Responding To This Recession?
  • Business Networking

How Is Your Brand Responding To This Recession?

By Bernadette 3 years ago

[ad_1]

It’s unofficially official: we’re in a recession. How long it lasts and how bad it gets are up for debate, but we have officially entered the land of low consumer confidence, skyrocketing interest rates, lingering logistics challenges across the Pacific, six dollar gas, and the general public slowly realizing that maybe all that free money in 2020 wasn’t really free.

recession scale 2022

But now that we’re here, there are lessons to be learned. History does in fact repeat itself.

Marketing leaders are going to react in one of three ways: attempting to “ride it out” and maintaining spend, cutting ad spend significantly (if not entirely), or doubling down on plummeting CPM rates and “buying low” on the attention of their target audiences. There are risks and rewards for each approach.

Looking back at 2008, 60% of brands went dark and cut their TV presence entirely for six months or more at the height of the economic downturn. According to a McKinsey report, ad spend didn’t recover to 2007 levels until 2011 after the 2008 recession. In March 2020 when COVID hit, paid social ad spend dropped 33% and paid search dropped 30%. The DTC revolution and temporary stimulus boost fueled a much faster recovery on spend levels. As it turns out, if you give consumers $1,200 checks from the government, they’ll find ways to spend them.

This time around, no such stimulus checks will come en masse. The $400 checks Californians are about to receive to “help ease the burden at the pump” will hardly offset fuel costs for a month for most commuters, and in my personal estimation will be used by most consumers to pay off credit card debt that has accumulated via lifestyles that have not adjusted to accommodate paychecks that don’t go as far as they did just five months ago. As such, coupled with ongoing attribution challenges, more marketing leaders are cutting ad budgets, agency relationships, and department payrolls in a hybrid approach of riding it out and throwing enough weight overboard in an effort to keep their boat afloat.

But your mother was right: “everybody else is doing it” is never a great reason to follow suit.

This approach is fueled by false confidence. Brand awareness and loyalty that’s been built for years doesn’t go away overnight just because an ad budget is scaled back. The draining of a brand’s competitive moat occurs over time, and much like the proverbial frog sitting in gradually boiling water, many marketers will fail to react in time to avoid significant long-term setbacks to the brand.

According to McGraw Hill, a study of 600 companies from 1980 to 1985 revealed that those that maintained or increased their ad spend following the 1981 recession outperformed those that didn’t by 265% over that time period.

Here Come the Challenger Brands.

All this said, recessions are incredible opportunities for challenger brands that have the fiscal resources and courage at the C-level to meaningful gains in market share. In the 1920s, Kellogg’s increased ad spend and launched new products, leading to its dominance over Post for decades to come. Toyota increased ad spend during the 1973 recession and was the top imported manufacturer by 1976. In 1991, McDonalds (28% loss) opened the door for Pizza Hut (61% growth) and Taco Bell (40% growth) to gain a stronger foothold in fast food when it scaled back its ad budget.

Regardless of where your brand sits today, you’re going to need a Strategic Partner to help you navigate yet another “new normal” for marketing leaders.

Let’s connect!



[ad_2]

Source link

Tags: American Express Business Cards, At&T Business Login, Att Business Customer Service, Att Business Internet, Bad Business Codes, Bank Of America Small Business, Buffalo Business First, Business Administration Jobs, Business Administration Salary, Business Analyst Jobs, Business Card Dimensions, Business Casual Female, Business Casual For Women, Business Casual Women Outfits, Business Ideas 2021, Business Letter Example, Business License California, Business Name Search, Business Process Reengineering, Business Proposal Template, Buy A Business, Card For Business, Chase For Business, Chase Ink Business Card, Columbia Business School, Costco Business Center San Jose, Emirates Business Class, Facebook Business Account, Fictitious Business Name, Florida Business Entity Search, Ga Sos Business Search, Georgia Business Search, Google Business Email, Houston Business Journal, Illinois Business Search, Instagram Business Account, Is Lularoe Still In Business, London Business School, Master Of Business Administration, Men'S Business Casual, Pittsburgh Business Times, Qualified Business Income Deduction, Sacramento Business Journal, Secured Business Credit Card, Standard Business Card Size, T Mobile Business, Texas Business Search, Tië³´o The Business, Top Business Schools In Us, Types Of Business

Continue Reading

Previous How Strategic Networking Can Deliver Big Results at Your Next Conference
Next Take-Two Shares Have Struggled but This Analyst Sees an Upside
June 2025
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
30  
« May    

Archives

BL

Recent Posts

  • Key Business News You Should Follow for Growth
  • Breaking Business News You Need to Know Right Now
  • Business Networking Ideas to Grow Your Influence
  • How Finance Analysts Help Businesses Stay Competitive
  • What Makes the Best Finance Companies Stand Out

Fiverr

Fiverr Logo
Intellifluence Trusted Blogger

Tags

Amazon Fba Business At&T Business Login Atlanta Business Chronicle'S Boss Baby Back In Business business Business Administration Degree Business Attire Women Business Card Design Business Cards Templates Business Casual Dress Business Casual Outfits Business Checking Account Business Credit Card Business For Sale Near Me Business Intelligence Platform Business Lawyer Near Me Business Loan Calculator Business Name Ideas Business Professional Women Business Spectrum Login California Business Entity Search Capital One Spark Business Carl Weber'S The Family Business Charlotte Business Journal Custom Business Cards Delaware Business Search enterprise Florida Business Search Fl Sos Business Search Harvard Business Publishing Insurance For Small Business Kelley School Of Business Maryland Business Express Maryland Business Search Moo Business Cards National Business Furniture New York Business Search Ohio Business Gateway Onedrive For Business Online Business Ideas Paramore Misery Business Risky Business Cast Small Business Insurance Spectrum Business Customer Service Tom Cruise Risky Business

Partner Links

t-kjool
cutchicago

bp

backlinkplacement.com

techizio
deencast
nicolesmagicspatula.com | Magazine 7 by AF themes.

WhatsApp us