Advertising hit hard by coronavirus

“When time are good you should advertise. When times are bad you must advertise.” The adage historically has been right. In the 1920s, Kellogg’s doubles it’s advertising while Post cut back significantly. Kellogg’s profits grew 30% and they became the industry leader. In 1973-1975 Toyota pressed on wit the promotion of their Toyota Corolla and passed Volkswagen as the top imported carmaker in 1976. In 1990-1991, Pizza Hut & Taco Bell increased their marketing budgets while most competitors cut theirs. Pizza Hut grew by 61% and Taco Bell grew by 40% while most competitors dropped 25% in sales. In 2009, Amazon sales grew 28% following the introduction of the Kindle. Your situation doesn’t define you, you define your situation. Sam Walton put it best when he was asked by a reporter “What do you think of this recession?”. His reply: “I thought about it... and decided not to participate.” What do you think?

I think that CMOs, Marketers, etc, are asking themself: "What happens if I stop advertising now?” If you go dark in the short, the impact on brand and business will be little, you won't lose the share of voice in your market. But... ?The evidence suggests that reducing ad spend in a recession is associated with declining sales and weakened company performance in the long run.? Mastering the short and long term it's the magic trick of our Job. Source: WARC #Ads #Advertising #Media #Marketing

In economic downturns, Marketing is usually one of the first budgets and teams to be cut, and it makes sense...if there are fewer people that are buying or investing, why bother to spend money trying to market to them? The evidence is to the contrary, cutting marketing budgets in recessions hasn't been shown to make companies any more profitable, in fact, it can have the opposite effect, hurting your business in the long term. Maintaining or increasing your marketing budget will give you a bigger voice in a smaller market because of the reduction in marketing and advertising from your competition, you just might need to change it up a little bit. Focus on values and market share, and when this recovers history suggests that you will reap the rewards! Hopefully, we can learn from past downturns and see fewer marketers being made redundant, only for businesses to rehire a marketing team later. #marketing #marketingbudget #marketingplanning #marketingstrategy

The companies and brands that continue to advertise during this crisis will be top-of-mind when the crisis is over. And by advertising, I mean buying airtime, space, banners, etc., staying the course and playing offense. I don’t mean, “maintaining a social media presence.” A marginally trained chimp wearing a diaper can do that. If you’re a challenger brand—and you are one if you’re anything but No. 1 in market share—know that most of your competitors are going to drop their schedules and run from marketing like it was on fire. This is an opportunity. In 2008, I represented a B2B brand that refused to go dark on advertising during the Great Recession, maintaining its buys and actually ramping up all marketing efforts. This, as its main competitors retreated with their tails between their legs, content to count pennies and disappear. As a result, the brand gained significant market share in multiple categories. Be that brand. Ideas don’t have to stay at home. #advertising #marketing #challengerbrand #media #adagency #publishing #b2b #consumer

If you're in a business that's struggling at the minute, whatever you do, don't stop marketing. Cut budgets. Tighten your belts. Pull ad spend. Scale back activity. But if you stop marketing completely, and this thing goes on for months, it's gonna make it ten times harder to come back from. Very few of us have much cash floating around at the min, but that only means one thing. It's time to get creative, innit? #Marketing