With recessions looming, consumers cutting back due to the cost-of-living crisis and the fallout of ongoing global catastrophes, many brands are finding it tough to navigate this era of turbulence and confusion.
Of course, every company will feel the effects of these global crises in some way, shape, or form – budgets will have to stretch further, for example, and growth will be harder earned than ever.
Jane Ostler, Kantar’s EVP of global thought leadership has created five marketing imperatives to help steer brands in the right direction while defending their budgets and ensuring that marketing contributes to growth in these challenging times.
There are also many marketing approaches that brands can take in response to the current economic, social and cultural circumstances. Some may choose to stay stoic and avoid any mention of current events, while others adopt a more humorous stance, attempting to connect with audiences through acknowledgement of their woes.
So what should marketers do as they look address the impact of these tricky circumstances?
1. Ensure your brand is meaningfully different
The most important way to stand out to consumers and keep them coming back for your product or service time after time is by establishing your brand as meaningfully different, not only by meeting their needs but also by being a trendsetter in your domain. Forming emotional connections with the consumer while simultaneously spearheading innovation within your field is the key to maintaining your margin.
Brands obviously need to be sensitive to price dynamics in their market, but even self-professed bargain-hunters are willing to pay more for brands that are meaningfully different. Conversely, those who insist that they’re blind to branding and make decisions based solely on price will pay 14% more for brands that they perceive in this way.
2. Avoid ‘going dark’ because it damages longer-term growth
Some brands are inclined to stop their communications during hard times, as we saw during the start of the Covid-19 pandemic. It’s challenging to press on when things are uncertain, but Kantar’s research shows that ‘going dark’ significantly impacts long-term growth.
You really want to avoid spontaneously drawing back on communications since so much is about momentum and consistency.
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If a communications budget is suddenly cut, it requires more investment to return to its previous level of awareness. At Kantar, we simulated a budget cut of 50% for a Telco brand in Germany. It projected that the brand’s awareness declined quickly and required a long time and significant additional investment to repair the damage caused by the disruption.
So, it makes sense to maintain as much of your marketing spend as you can.
3. Focus your media investment on achieving your objectives
It can take time to decide which area of advertising to invest in. You want as much bang for your buck as possible, especially when times are tough, but sometimes the most obvious channels differ from the ones that serve our needs the most.
Channels like TV have become the first ones we think of when we hear the word ‘advertising,’ but it’s time to rethink the best use of resources. Where should you be focusing media investment these days? Your precise use of media will ultimately depend on your objective and your audience, but one excellent indicator is how much brand impact each channel brings for your investment dollars.
Some channels including YouTube and Facebook are highly under-invested compared to their brand impact. I’d encourage all marketers to take a fresh look at which channels they’re prioritising and re-orient toward those which will truly support the brand’s objectives. Also, no matter the brand, digital channels can always be used to build brands. They are not all about performance.
4. The content and the tone of your marketing matters
Sometimes marketing can seem like a numbers game, but we must remember that the tone and content matter hugely, particularly within a tumultuous media landscape. Despite your personal feelings, don’t assume that ‘sadvertising’ is the way to go.
Consumers are attracted to marketing and advertising that’s useful, relevant, and optimistic. So, I insist you use humour (appropriately, of course) and closely consider how your message will make people – many of whom could be struggling already – feel.
5. Creative quality can magnify media spend
Here’s a secret. You can overcome media budget cuts by investing in quality creative. In our simulation, Kantar calculated the total branded memories from our client, assuming the use of 30% better and worse creative content. People’s total branded memories were significantly higher with better creative content.
So, don’t waste your already tight marketing budget on ads with low ROI. Instead, measure the effectiveness of all your activity, understand precisely how the channels you use are performing and, whatever you do, invest and test to ensure high quality creative.
We’re all going to face a challenge this year, but marketers can take concrete steps to survive and thrive despite this.
