Embedded Files
- WHAT SHOULD WE DO RIGHT AWAY?
If you don’t have a Drum account you can read it on this link:
This piece argues that cutting budgets hurts more than it protects a business. Obviously this is generalisation, and we need to look at each case individually.
However, it offers evidence to support these claims, predominantly with data from the UK’s Institute of Practitioners in Advertising (IPA), so it is credible.
A quote that stands out is this one:“It is better to maintain SOV (share of voice) at or above SOM (share of market) during a downturn: the longer-term improvement in profitability is likely to greatly outweigh the short-term reduction"
This is supported by this study, making the case for not cutting advertising
This table is interesting - showing where savings could be made instead:
We do, of course, need to factor in the confirmation bias a marketing publication is going to have about the need for business to keep spending on marketing!
With each client we need to be led by the data and needs of their specific business.
In 2008 Harvard Business review published 'marketing in a recession'.
In 2008 Harvard Business review published 'marketing in a recession'.
https://hbr.org/2008/09/how-to-market-in-a-recession
A good quote from it - 'Maintain marketing spending. This is not the time to cut advertising. It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times. Uncertain consumers need the reassurance of known brands'
http://www.samueljscott.com/wp-content/uploads/2019/01/POVMarketingDuringRecession2-0508.pdf
Good quote on the opportunity rather than risk below.
'A recession can impose a discipline on marketing that is actually beneficial to brands. Anticipate their actions. Recessions are a time of flux. Now more than ever, you need to anticipate what your competition might do and plan accordingly. The relationship between SOV and SOM, which exists during both good and bad times, becomes a critical factor during recession, when many brands cut back on spending. If everyone else cuts spending, you can gain an edge simply by maintaining your own level of investment. '
- WHAT SHOULD WE SAY?
https://www.marketingweek.com/marketing-in-a-recession/
It makes the case that brands need to keep to their values and tone of voice, rather than changing everything to react.
It is based on TNS research (part of Kantar) so it is credible. It warns companies not to drop their well-established values and distinctive marketing styles in favour of reactive promotions.
“This technique may result in some brands losing the very elements that make them valuable to people.”
We’re exploring a number of economic theories about what might happen. One idea is a post Corona Spike in Q3 or Q4 when people are out and spending again. This will require new and appropriate messaging.
https://hbr.org/2020/03/communicating-through-the-coronavirus-crisis
- WHAT ABOUT THE LONG TERM?
This will be over at some point, we will want to have some very strong quarters to make up for it.
This is an opportunity to invest in measuring the Full Funnel and identifying where the most profitable customers are coming from based on Life Time Value, so we can get more of them.
See the video below of Marcus speaking:
This power of this Full Funnel approach that priortises PROFIT can be seen in this table here.
4. What about brand?
4. What about brand?
This report on Marketing effectiveness in the digital era talks combining long term performance with short term performance.
This report on Marketing effectiveness in the digital era talks combining long term performance with short term performance.
https://effworks.co.uk/wp-content/uploads/2017/10/MEDIA_IN_FOCUS_FINAL_PDF_909.pdf
It discusses the split of resource between brand building and sales activation. We always believe you should optimise the bottom of the funnel over spending more on top of the funnel, but we need to take a view based on each clients goals and market share.
This is an interesting Branding Building Manual from Google.
This is an interesting Branding Building Manual from Google.
https://effworks.co.uk/wp-content/uploads/2018/10/LB-PF-Effweek-presentation-final.pdf
They are keen for everyone to invest more in brand to increase their revenue beyond search. We need to be measured here, especially with demand falling in the short run, however it’s worth considering their findings.
Ok, Fountain, this is all interesting - but I need a bespoke strategy for my campaigns NOW:
Ok, Fountain, this is all interesting - but I need a bespoke strategy for my campaigns NOW:
Don’t worry, our task force has already started work on it. Please call your Account Directors for an update…
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