We all feel the uncertainty brought on by the COVID-19 virus. Communities, businesses, and individuals continue to take preventive measures to keep each other safe and slow down the spread of the infection.
As we all know, consumer behavior is shifting in the markets around the world. Many businesses are reconsidering their current marketing strategies or business models to survive the storm.
If you can work from home, we hope that you, your team, and your loved ones have already settled in safely. Our strategists have been working hard to understand how we can provide you and your teams with the right information, market insights, and strategies to help your businesses withstand the current conditions.
Our Fulfillment Team has come together to address common questions across various industries. What our clients and partners want to know is, “Should I keep advertising during this crisis?”
The short answer is, “Absolutely!” but read below for some of the reasons why.
Businesses That Continue to Advertise During a Crisis Grow
Throughout its history, the U.S. has endured and survived various recessions. Along with the hardship of these times, each experience provides opportunities for growth. What previous experiences have taught us can be used during this COVID-19 crisis. Here are a few to consider:
- Adapt with efficient processes to volatile market conditions and demands.
- Continue working to position their brands. Those who are relentless will eventually benefit from a decrease in competition and heightened brand awareness. Many even experience the highest growth in sales and net income during recessions and the two years that follow.
Last year, Microsoft Advertising rolled out a blog featured on Forbes. The piece focuses on companies that leveraged their marketing efforts during crucial times to grow their businesses. Below are some examples included in the article:
- During the 1920’s crisis, Kellogg’s doubled its advertising spend and introduced Rice Krispies. Amid the chaos, a new product was a bold move. When Post, their competition, cut their advertising budget, Kellogg’s decided to invest. The space in the market allowed profits to grow by 30% and gave them the lead in the ready-to-eat-cereal category.
- Toyota was tempted to decrease their ad budget during the 17-month recession of 1973-75. However, the company followed its long-term plan and stuck to its ad strategy. By the year 1976, Toyota had surpassed Volkswagen’s presence in the market and became the top imported car maker in the U.S.
- Amazon positioned itself in the technology industry when it unexpectedly introduced new Kindle products during the 2009 Great Recession. Against the norm, the company’s new products increased market share and grew sales by 28%.
When Everyone Stops Advertising, Opportunities Open Up
When others pull back, windows of opportunities present themselves. These changes in the competitive landscape mean possible growth in market shares, improved advertising deals, and brand awareness for those who continue to advertise.
With a close eye on how our clients’ competitors are behaving online, we expect the same to occur. Many of our clients have improved their online market share or position in the search results pages without having changed their campaigns.
The image shows how a client from the automotive industry gained market share over the last few weeks. Changes also resulted in a lower cost per click (CPC) while staying top-of-mind with consumers.
We continue to review past cases and current conditions to help you combat the volatile markets. As you take the preventive measures as individuals, we hope to provide you with the tools and information to make informed decisions rather than radical ones.
Like many of the businesses we discussed in our post, those who can continue to connect with their audience should do so. These are tough times, but as we have learned, they do not last forever.
Furthermore, with your progress in mind, we’ve put together a set of one-pagers for various industries and businesses. In each, we evaluate the current situation and propose strategies to help our clients and partners swim through these waves. Feel free to share or download:
- Cosmetic Surgery Industry
- Dental Industry
- eCommerce Industry
- Legal Industry
- Automotive Industry
- Food Industry
We are continually updating our blog to keep you informed on industry news as they come up. Stay safe and subscribe to our blog for more relevant, up-to-date information!