No question, 2020 has been a shocker for many brands, and as we enter 2021 we will need to come to terms with how we navigate the recession.
Research of the past four recessions shows each has followed the same pattern, some businesses don’t survive, most take three years to get back to where they were, and 9% flourished.
So what did those who flourish do differently:
- Balance between cost cutting and operational spend
- Increased marketing, R&D and new assets
- Cost cutting focused on improving operational efficiency rather than cutting staff
- Stayed closely connected to their customers needs
- Increased their share of voice
Businesses who maintained or grew their advertising spend during recessions not only set the company up to survive the recession, but they thrived in the period that followed.
This result has nothing to do with the recession, it has everything to do with advertising share of voice. Simplistically, if you are the only brand in the market advertising and promoting yourselves, your brand becomes the only brand in the segment for the consumer.
While during the recession it is likely you will experience a reduced return on your advertising investment, you will likely increase market share, and once the economy improves your chance to maintain market share is strong.
The choice is yours, you can stay brand bright, maintain and grow your market share, and attract customers from your competitors………..….. or you can go dark.
What are you going to do?
