We are all feeling stressed about the uncertainty caused by the COVID-19 virus and its repercussions. Individuals and businesses carry on taking preventive measures to keep each other safe, and market behaviors are changing drastically. As a result, many business owners are doubting whether to continue their current marketing strategies or not. Many of our clients are unsure whether to continue or stop advertising during this time of uncertainty. Obviously one formula does not fit all but based on past evidence, continuing advertising during a crisis can be beneficial in the long-run. Here’s Why.
When we go back in history, we see that the U.S. has endured and survived various recessions over time. With the hardships that have followed, these times of despair have given many opportunities for success. Businesses that have continued to advertise during these crises have grown. When looking at what past events have taught us, we can advise the following during this COVID-19 crisis.
Develop efficient processes that are adapted to unstable market conditions and demands
Continue working on brand positioning. Relentless businesses will eventually benefit from increased brand awareness and less competition. You could possibly even see the biggest growth in sales and net income during this time and the next few years that follow.
In 2019, Forbes posted a Microsoft Advertising blog focusing on businesses that have leveraged their marketing during crucial times to grow. Below are some examples they presented:
Kellogg’s: Doubled its advertising spend during the 1920’s crisis and introduced Rice Krispies. When their competitors cut their advertising budget, Kellogg’s chose to devote. The room in the market granted earnings to increase by 30% and gave them the lead in this marketplace.
Toyota: During the 17-month recession of 1973-1975, they were inclined to decrease their advertising budget but decided to stick to their long-term plan and ad strategy. As a result, they outperformed Wolkswagen’s market presence in 1976 and became the top imported car manufacturer in the U.S.
Amazon: During the Great Recession in 2009, they shifted into the tech industry by introducing their new Kindle products. Against the norm, their new products contributed to an increase in market share and a 28% growth in sales.
When Competitors Stop Advertising, Opportunities Arise
Although you’re not Amazon or Kellog’s, you can benefit from continuing advertising. As a result of your competitors cutting their advertising strategies, windows of opportunities present themselves.These shifts in the competitive marketplace equal potential of growth in market shares, good advertising deals, and increase in brand awareness for businesses who choose to continue advertising. If you continue to advertise, you can expect to see a decrease in Cost Per Click (CPC) while advancing to stay top of mind with your customers and clients.
If you need help pursuing an advertising strategy that combats the new market shifts, contact us for a free consultation. We’re easy to talk to. Just pick your favorite way to chat and reach out to us.