In this session...
Brands and advertisers just now settling into a post-COVID marketing rhythm could be facing another major disruption, this time in the form of a global recession, and as consumers adjust their spending to adapt to inflation and higher interest rates, many brands and advertisers are following suit.
Marketers focused on mitigating the impact of a recession and maximizing the effectiveness of their marketing budgets need to think of — and spend for — the recovery.
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Brands and advertisers just now settling into a post-COVID marketing rhythm could be facing another major disruption, this time in the form of a global recession, and as consumers adjust their spending to adapt to inflation and higher interest rates, many brands and advertisers are following suit.
But while dialing back media spend may seem to make sense for short-term budgetary concerns, marketers focused on mitigating the impact of a recession and maximizing the effectiveness of their marketing budgets need to think of — and spend for — the recovery.
Sometimes, budget cuts are inevitable. If you know you have to adjust your spend, make sure you’re cutting the right costs in the right places, to maximize the effectiveness of your remaining dollars and minimize negative impact to your ROI.
No matter what media mix and budget allocation you ultimately decide on, remember that any spend is better than no spend at all.
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What You'll Learn from This Session...
- Recessions don't last forever. Historically, 75% of recessions end in a year, and 30% only last two quarters.
- Growth is possible, even in an economic downturn. Recession-friendly messaging can help reinforce the value of a brand and help ensure consumer loyalty beyond the recession.
- ROI is typically lower on promotions (45% less than media, according to Nielsen's marketing mix models), as only a small portion of promotional sales are truly incremental, and promotional sales have to be much higher to make up for lost margins.
