As the COVID-19 outbreak continues to cause global uncertainty, it’s no secret that many UK brands and marketers are delaying advertising campaigns.
However, over the years, a range of evidence has been collated which makes the case for protecting marketing spend during a slowdown. One example is from The London Business School, who analysed data for 1,000 PIMS (Profit Impact of Market Strategies) businesses that had experienced recession and recovery. They concluded that businesses that maintain or increase marketing spend during recession see their profits increase dramatically faster once recovery starts. Return on capital employed (ROCE) during recovery was 0.6% for maintaining and 4.3% for increasing. Unlike the budget cutters, whose profitability falls as their marketing budget is reinstated when recovery begins (a 0.8% decrease in ROCE during recovery).
From a consumer perspective, a survey of more than 35,000 consumers globally by Kantar found that just 8% thought brands should stop advertising during the pandemic. The same report also showed consumer spending in several markets has increased; household cleaning products, medicine, online entertainment, medical and life insurance, food and beverages and nutrition and health products.
These points, therefore, suggest that if a brand can, and it is appropriate to do so, advertising should continue through the current pandemic.
All Response Media viewpoint
Now more than ever, All Response Media needs to do what we do best and work closely with our clients to be flexible, react quickly and seize opportunities. Many of our clients are online, which means consumer demand is still present whilst everyone is staying at home. Your client teams will be able to advise regarding your specific brands and consumers, however, here are some top tips for advertising during the COVID-19 pandemic:
Re-evaluate your media mix: TV, radio, door drops and digital are booming in terms of audience impacts, whereas media such as cinema, experiential and out of home (OOH) is vastly diminished. Consider moving your advertising budget around and potentially testing a new media channel.
Messaging: Messaging needs to be sensitive to the current situation. Consumers want to be informed about how brands can help them either in general or particularly during this difficult time. Be careful to not look like a brand that is abusing the circumstances.
All Response Media and our creative partners can help you make new and more relevant creatives if needed – quickly and at low costs, across all media including TV.
Benefit from increased audience availability and impacts: Audience impacts across all ages and demographics have increased across both TV and radio: creating an advantage in targeting all audience profiles. The ‘hard to reach’ demographic of those aged 16-34’s has seen the biggest percentage increase on TV.
Stay safe and stay in touch with your ARM client teams! For more information on the TV services, we offer click here.