We’ve begun to hear a different “R-word” recently. Recovery.
Assuming that’s where we are headed, the consensus indicates the recovery will be steady but slow. So is this a good time to be optimistic and take a pro-active approach to advertising and marketing? Very possibly so. After all, if you’ve continued to advertise during the recession, you hope to capitalize with share gains coming out of it, right?
That same philosophy holds true during the recovery. Spend on advertising and marketing while your competition may be cutting expense and you gain share of voice and expand your brand. But it’s still critical that you get the most for your advertising dollar. And to do that, you need to understand your customers and what will entice them to be engaged in your advertising.
Instead of buying what they want when they want it, the American consumer is now more focused on practicality, thrift and staying on budget. The emerging mindset of the consumer is to be less willing to charge on impulse and run up debt.
“What we are seeing is a changed consumer,” said Gary Drenik, President of BIGresearch. “The faltering economy, employment worries and questions about who’s going to pay for healthcare are really weighing on the consumer’ psyche.”
How does this relate to your advertising message? Make sure your product offerings, and then your advertising, reflects what’s important to your customers. For instance, in this environment, a higher percentage of consumers are attracted by value and price reductions. When asked by BIGresearch how the current economic crisis will impact their lifestyle over the next five years, 52.1% say they will consider each purchase more carefully, 48.8% will be more price conscious when buying clothes and food and 46.7% will stick to a budget.
It’s critical that you speak to your customers and prospects about what’s important and meaningful to them. Consumers have money and are willing to send as long as the offer is right.
Your Checklist for Advertising in an Economic Recovery
Spend More
The common tendency is to shrink budgets when hard times hit. The smart approach, however, is to identify where your money will have the most impact and increase your spending in that area. Often that means putting more money into advertising and marketing, because while other businesses in your industry are struggling and cutting back, you should be gaining market share. It could also mean investing in critical infrastructure that will help you be more efficient and increase your scale of economy.
Use Proven Advertising Vehicles
Generally, the bigger, more established, proven properties are most effective. This is not a good time to experiment. And it’s not a good time to do nothing. A recent Ad-ology study shows that 48% of consumers think a lack of advertising indicates the business is struggling.
Focus - Don’t Diversify
Don’t take the shotgun approach to business, shooting as much as possible, crossing your fingers and hoping that you will hit something. The best entrepreneurs pick up a rifle, identify the right target, and nail the bull’s-eye. The more difficult the economic environment, the more important it is for you to focus on your core passions, values and competencies. Those who try to be everything to everyone often do very little for very few. You must identify who you are, why you exist, who you can serve, what you can do best in the word at, and then bring that core to the word in the most powerful and effective way possible.
Focus Your Advertising, Too
Target your best prospects. For most businesses, at least 70% of people will never be regular customers. It is likely that most of your sales come from 30% or less of people that walk through your door. Control advertising waste and increase effectiveness. This gives you more dollars to increase frequency and target your advertising to your customers and likely prospects. And remember that frequency is the key. The more exposures, the more consumers like your brand. Research proves that positive feelings toward any brand are directly related to the number of advertising exposures or messages sent out.
Make Sure Your Message is Strong
Make sure the message is right! Are you certain that your message, in whatever media you use, is meaningful to your target? More importantly, since your message should reflect what the consumer will actually experience, is your business focused on the right things to entice consumers to begin with? Revisit your offers and strategy first, and then revisit the creative concepts used in your campaign and ensure your message on target!
Why Radio-Now More Than Ever?
Radio is getting a second look from many advertisers looking to improve the effectiveness of their advertising. Why does Radio make so much sense in a covering economy? Two of the most key reasons are targeting and frequency. Radio makes your marketing dollars work harder because you’re targeting the right people, those most likely to be loyal or potential customers. Because your dollars are focused on your most important consumers, Radio is perfect for tight budgets. Then, employing Radio’s unique ability to provide repeated messages (frequency) dramatically boosts awareness, positive feelings and product usage.
