Advertising through a recession
The coronavirus pandemic threatens to plunge the world into the deepest and longest recession for almost a century. Not only is it predicted to be more severe and more all-encompassing – in terms of categories and countries – than any recession in living memory. The growing lockdown of free movement of citizens will also make it unlike any other.
Brands that are still able to trade effectively in these extraordinary circumstances are looking for guidance on what marketing they should undertake during the pandemic, during the recession that will follow, and afterwards.
While it is in theory attractive to turn off marketing investment, historical precedent suggests that brands that thrive during and after a recession are those that sustain and even increase marketing spend.
“Going dark” and focusing on short-term price promotions are in fact counter-productive strategies. They erode brand equity measures, stifle growth, and put brands at competitive disadvantage. They also make it incredibly challenging to retain price premiums that brands take years of long-term brand building investment to secure.
What it covers
Brands are likely to need to hold their nerve for longer and dig deeper than in previous recessions.”