Why maintaining marketing spend is the most strategic path through tough economic times

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by Samuel Pordengerg Sep 16, 2022 News
Why maintaining marketing spend is the most strategic path through tough economic times

Economists are sounding the alarm on a possible recession just as we thought we were entering the new world. I am worried as a parent. I share the frustration of higher gas prices with my friends. I am constantly thinking about what this means for brands and their media investment strategies, and how to help them continue to grow their businesses in spite of these challenges.

The marketing budget is usually the first to go in times of economic difficulties, as brands pull back spending altogether. With consumer spending yet to slow down, it is important to remember that sustained marketing spend is essential to the survival of a brand.

Maintaining or even increasing ad budgets during a weak economy can ensure short- and long-term advantages for brands. When it's too expensive to eat out every night, consumers will spend more time watching TV and researching retail sales for their next home project.

There are a few key strategies that brands can use to attract consumers and grow their business during times like these.

1. Manage investments and spend smarter

marketers are quick to assess their investments and evaluate what is really needed for survival Pulling back completely can be detrimental to brand performance in the long term. Maintaining a strong brand presence that consumers recognize, trust, and gravitate towards is essential for the viability of a brand and can ward off risk during an economic downturn.

Instead of freezing marketing spend entirely, marketers should invest in solutions that drive efficiency and help reach their intended audience without waste, such as cross- platform addressable solutions across linear and streaming Awareness and consideration are more important than sales outcomes for large ticket purchases.

2. Expand market share in a shrinking space

There is an opportunity for brands to increase their voice in the market as competitors cut back on advertising. One in four consumers made a purchase from a brand or retailer they wouldn't normally buy from, with price, product availability and product quality being the top reasons why.

When consumers prioritize new brands based on lower prices and more product availability, it's important for brands to expand SOV. Keeping loyalists from being tempted to switch is one of the things marketers need to do. They should also include first-party data and loyalty programs.

3. Reaching target audiences with relevancy

Strategies that deliver relevant and personalized messages should be considered by brands. According to research, 89% of people respond positively to ads that are relevant to them. 74% of people react well to advertising that fits into the content they are already watching, listening to or reading

Since a consumer's spending likelihood varies based on household income, geography and age, marketers can use audience-based buying to ensure relevancy. Whether through addressable or data-driven linear solutions, or flexible buying across digital video and connected TV, this precise relevancy in messaging is extremely important during times when brands need to attract new customers.

4. Adapting messaging to today’s environment

Four in five American consumers are concerned about the economy and how rising prices will affect their everyday purchases, and it's important that brands adapt their messaging to succeed. If a brand fails to take the temperature of the room and evolve its messaging, it could be seen as out-of-touch or even uncompassionate.

As consumers are increasingly worried about the cost of goods and how far their paycheck will stretch, brands can create strong emotional connections with viewers by being authentic, compassionate and transparent.

While brands may be used to highlighting their discounts, promotions and product availability in their messaging, emphasizing these deals during times of economic instability will appeal to both new and old customers.

It is possible for brands to market and do more than just survive a recession. It is possible for brands to set themselves up for success by increasing share of voice and relevancy.