caytoo’s corona-resilient brands
Brands are hunkering down, people are being laid off or furloughed in large numbers, the news agenda is dominated by infection rates, death rates, unemployment claims and market chaos on a global level. However, there are a number of corona-resilient brands who may be more open to conversations.
Here’s some evidence of why hunkering down now causes more problems in the long-term:
- A Kantar study found that if a brand cut all its advertising spend during the crisis, this would have a 13% impact on sales in the long run and make market share hard to recover. However, a 50% drop in ad spend would result in just a 1% drop in sales.
- A WARC report said that “Evidence from previous recessions shows longer periods off air will weaken brand health and damage market share due to a reduction in share of voice.” The report goes onto show that due to the level of advertising spend reduction in the last recession it took the ad industry eight years to properly recover.
- Mark Ritson in Marketing Week refers to a Great Depression study which tracked 250 companies and their marketing performance during that period. Quite simply, those that increased advertising budgets during the recession grew sales faster both during and for the three years subsequent, and they all grew their market share. Ritson suggests that if you need to cut, you should cut short term activities at the bottom of the funnel – if nobody is spending right now, cut PPC, but don’t stop investing in long term brand building.
As a forward-thinking client said, “the present is a nightmare, but I am still required to look at the future.”
This situation will end, and ‘normality’ will return, although there is some debate about what the new normal will look like. But what is clear is that brands that have been talking consistently throughout the lull – those attempting to keep the economic motors turning – will have a head start.
Brands need to continue to build their brands and reputations; rights holders need commercial partners now more than ever; and fans need someone to help fill the live sports void with content.
Three groups with very different needs that can all be served by new innovative activities between brands and rights holders. Given the current moratorium on live sport and events, rights holders will need to be creative when targeting brands and delivering compelling proposals which play to what’s possible in the short term (content, gaming, virtual events) based on this event consumption vacuum but with more than half an eye on what can be done together when the lockdown ends. Which it will.
We can help by identifying those corona-resilient brands who are worth targeting now, with the sorts of message which might resonate with them, and the correct contact details, meaning you can focus your time and energy on developing that creative pitch.
In a new weekly series as part of our caytooTarget service, we’ll explore those sectors and brands which are showing resilience to the current chaos or are even benefitting from the new stay-at-home / work-from-home culture.
The full article, containing our initial list of technology, telecoms, supermarket and DIY brands is available to view here.