Should advertisers show their face during the crises?

The country is battling two crises and an economic recession. So what are marketers to do?

(NOTE: all references and additional information can be found linked at the bottom)

This past weekend after another sobering news segment about the devastating effects of the coronavirus pandemic and then about protests across the country against racism, the following TV commercials aired: a car commercial promoting the ability for consumers to purchase a car completely online; then a pizza commercial announcing the measures the company is taking to ensure their employees do not touch the pizzas and guaranteeing safety for customers.

The country is battling two crises: the coronavirus pandemic and racism. Throughout the past several months impacted by the coronavirus, we’ve seen advertisers with impressive agility quickly adjust messaging to relate to the COVID-19-environment; our media channels are flooded with messaging of home-delivery, sales, work from home convenience, sanitation and what the company is doing to help pandemic efforts. Then more recently, after the death of George Floyd, many brands are adapting messaging to take a stance against racism.

Though certainly more relevant, I wondered, are new cars and delivery pizzas really the best thing for a country [world] in crisis? 

To put it more simply, should businesses advertise during a crisis?

Two main arguments can be made about this. On one hand, with so many consumers now unemployed, financially burdened and emotionally burnt out, they may have more important things to worry about - so advertising risks coming off as insensitive, irrelevant or unrealistic. On the other hand, advertising drives purchases, purchases support businesses, businesses provide employment and employment helps the economy.

As an advertiser myself, I believe in advertising and its benefits. However, to look deeper into my original question, I dug into history and research; I explored historical business successes in relation to different crises, as well as consumer opinions relating to advertising. 

From a business perspective, if history has taught us anything about advertising in a crisis, it’s that businesses should do it (if possible). Throughout wars, depressions, recessions and other crises, success has sprung from adapted and continued advertising.

Take movie theaters for one example. Right around the initial success of big box-office hits in the early 1930s, the Great Depression shook up the American economy. Unemployment skyrocketed and people were not indulging in luxuries like going to the movies. To adapt, many theaters shifted their communication to promote discounted tickets, giveaways and other special offers. Not only did this entice customers to continue attending movies, but by 1941 their popularity had passed pre-Great Depression numbers.

Consumer Packaged Goods is another industry significantly impacted by financial hardships. During the 1930s, grocery stores reduced inventory based on the shift in purchase behavior. Despite the decrease in orders for its soap, Procter & Gamble increased its advertising and even expanded to other mediums, such as commercial radio broadcasts. This new avenue in particular proved valuable for P&G, driving sales while also creating a new form of consumer engagement. In fact, demand for these radio broadcasts increased, leading to over 21 different versions by 1939, and eventually even leading to the first “soap opera.”

The same has been seen in more recent times of financial convulsion. During the late-2000s Great Recession, Dunkin’ Donuts remained aggressive with both advertising and business decisions. It continued to advertise its affordable coffee, launched the “America Runs on Dunkin’” campaign, formed partnerships with JetBlue, and introduced its product to grocery and retail stores. By doing so, DD excelled as a value-centric coffee brand and as a coffee franchise.

Lastly, looking at businesses impacted by the 9/11 terrorist attacks, the airline industry was one of the (if not the) most affected. While many airlines cut capacity, Southwest took a different approach. It did not cut capacity, it limited employee furloughs and it focused on customer service with easy reimbursement or postponing usage of purchased tickets. Unlike other airlines, Southwest stayed profitable and continued to grow.

There’s a reason why these brands and businesses are still so popular today. They understood the environment, adapted appropriately, and maintained their share of voice. 

From a consumer perspective, advertising too has its benefits. Advertising has the power to positively impact consumers’ sentiment, provide useful information and instill a sense of normalcy. Granted, depending on your message, it can negatively impact sentiment as well. However, nowadays consumers expect advertisers to be fair, be truthful and to stand for something.

In a recent study by Kantar, we learned that consumers in the US are becoming less bothered by advertising (only about one third (32%) dislike advertising in general), and the majority (74%) of consumers feel advertisers are doing a better job at communicating with consumers. 

Advertising continues to serve an important role amidst the coronavirus pandemic. Many consumers reported that they find it reassuring to continue to hear from brands during these times of crisis. Furthermore, the majority feel pleased to hear about what brands are doing to help with the coronavirus pandemic. On the flip side, only 15% of consumers feel advertisers should completely stop in these times.

When it comes to the notion of advertising: with the financial benefits for businesses and larger community impact, combined with the emotional and intellectual benefit to consumers, it is important to stay present, stay on-brand and continue to inform your audience. Yes, you should revisit your marketing plan as the environment shifts to make sure your message is relevant. And nowadays advertising doesn’t have to just be TV commercials; many brands are shifting to digital-focused plans and branching way beyond traditional advertising (and even beyond traditional-digital advertising). It is important to ensure you are thoughtful with where you reach your audience and what you say. But remember, communication is a powerful tool, so it is your duty to ensure it is done responsibly.

How have your brands been adapting to the crises?

For more information and references:

• Visit this link for more Great Depression advertising examples, including the movie theater and P&G example
• Download the ARF Navigating COVID-19 report for more information on Dunkin’ Donuts’ Great Recession advertising approach and on Southwest’s 9/11 business success
• Visit this link for more analysis on consumer perception on advertising and access to the 2019 Kantar report
• Visit this link for the 4As consumer sentiment research about brands advertising during COVID-19