Covid-19 resilient brands (FREE)
As I stated up front in my column that introduced our Covid-19 resilient brands report (available to rights holders completely free), prospecting for sponsorship feels a little bit odd right now; inappropriate even.
Brands have been hunkering down, people have been furloughed, the news agenda has been dominated by infection and death rates and market chaos at a global level. But the harsh reality is that the show must go on – the more we all row back now, the longer the recovery will take, and the more share we’ll lose in the meantime. Here’s some evidence:
- 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 refered 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 buying anything, 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.
Whatever it looks like, when we hit it there will be an almighty explosion of noise and activity from brands so standing out will be nigh on impossible. Brands that have been talking consistently throughout the lull – those attempting to keep the economic motors turning – will have a head start. What is clear is that just as brands need to continue to market their products and services; rights holders need commercial partners now more than ever; and fans need someone to help fill the live sports void with content.
So, “Covid-19 resilient brands” from our caytootarget™ service explores 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 and, thus, may be more open to an approach – at least to start a conversation.
caytootarget™ is designed specifically to help rights holders save time and resource when it comes to overcoming their key pain point – identifying viable target brands and hitting the right decision-makers with relevant and compelling proposals.