HOW DO BRANDS COMMUNICATE IN A CRISIS?
Given the current situation, we want to help businesses recover as quickly as possible from the effects of quarantine. Therefore, by encouraging the use of this situation for the communication of brand values and innovations, we provide a 60% discount on advertising on outdoor screens during quarantine (The offer is valid till 2020-06-08).
How can brand advertising become an effective investment during a crisis when the market is full with similar products or services of competitors?
Mindy Grossman, considered by the “Forbes” magazine as the most influential woman, says the crisis could be a good way to present the brand as a leader and strengthen its image.
Consumers usually choose products or services based on emotions rather than logic, so the emotional connection during a crisis is very important. The way you communicate brand values and demonstrate them through actions will determine whether consumers will form an emotional connection with the brand, remember more than a competitor, and remain loyal to you. The loyal customers are most important during this period. Consumer empathy is a valuable return that can be achieved without seeking to sell products or services directly. Show what is important to you, state your position how you react and solve problems!
Reduced advertising noise - how to take advantage of it.
In the event of unexpected changes, it is necessary to react quickly, change or postpone existing plans and strategically draw up a new action plan. Generally, the company’s marketing, whose budgets are cut, suffers. Whether this is a good decision depends on the situation of the individual company, what budget reserve they have, their regular or irregular sales and how much risk they can take.
The results of the IAB survey on the change in the volume of brand advertising show that about 24% of respondents stopped advertising and 46% of them rescheduled the volume of advertising ordered. Advertising costs are expected to fall by 20% from the provided plan.
A reduction in advertising noise (or advertising volume) opens up opportunities for the brand to become more visible. Increased advertising intensity means a greater opportunity of becoming more visible compared to competitors who are likely to have stopped or reduced their advertising volumes. In this way, targeted advertising, divided proportionately between regular sales advertising and situational advertising, can attract new customers.
Positive effects of advertising after World War I
According to a Harvard University study on the impact of advertising during the Great Depression, 17% of companies analysed did not survive the crisis, and 9% of companies have prospered by improving their financial performance compared to the pre-crisis period. The researchers concluded that these companies maintained a balance between a strategy of reducing selective costs and investing in tomorrow. They, unlike their competitors, paid more attention to activity improvement, spending more on marketing, science research and development. They spent about 0.5-3 times more on advertising than in 1920s, and the combined application of all measures brought in higher profits and led to better results.
WHAT MEASURES SHOULD BE TAKEN IN TODAY'S CONTEXT?
As consumer behaviour changes, the competitive environment changes and new trends emerge. We should keep up and adapt to the current situation as soon as possible.
When planning decisions, reschedule budgets, and clearly assess what actions you can take. Is the brand for regular use or occasional use? If your company makes a regular profit, it would be worthwhile to continue advertising, use sales and image communication (to use content that is relevant today, to present your values). If the company’s profits aren’t regular, pay more attention to image communication, self-assess how much you can cut prices so you don’t lose and, of course, think about innovations. Perhaps the new product will receive great success. Today’s consumers care about how they can contribute to tomorrow by investing in your product or service.