23 Aug Do More with Less: How to Future-Proof Your Brand and Maximize Ad Spend
It seems like we all are re-examining our spending habits these days. From consumers to advertisers, everybody is reacting to the current economic climate.
Inflation is up, consumer confidence is down.
During these times of economic uncertainty consumers and companies have one thing in common, both are pinching pennies a little bit tighter.
And the most recent numbers reiterate a more subdued approach to spending. While consumer spending remained flat in July, economists are suggesting with everyday necessities such as groceries, gas, and utilizes still on the rise and taking a bigger slice of the budgetary pie, non-necessities such as luxury items and major purchases will likely remain dampened for the rest of the year.
Ad spending too is facing a gloomy outlook heading into the remainder of the year. Ad spending in July saw it steepest monthly decline in two years.
Less is More
So how do advertisers navigate the lean months ahead? In short, do less with more.
A knee jerk reaction might be to cut or freeze ad budgets and wait it out for more certain times ahead. This, however, as is the case with many instant reactions, might not be the best plan of action.
Studies show that companies that invest in their marketing spend especially when it is designed toward long-term growth objectives, see immediate return following an economic downturn.
So what is their playbook, the companies that rebounded the best placed a priority on brand-building, growth, and consumer engagement. By instilling their audience with their brand values and building consumer trust, these advertisers prime cautious consumers for action. A few ways to leverage this environment is a shift to ad spending that can catch attention as consumers navigate economic conditions and continue maintain brand exposure during the tumultuous economic environment.
After all the uncertainties associated with COVID-19 for the past two and a half years, people are returning to their daily lives despite the current economic uneasiness.
Although spending is down, time spent outside in the real world is up, giving a boost to digital out-of-home advertising and ads on non-visual platforms like digital audio. Although the pandemic increased consumer spending across many industries, rising inflation has caused many of these same consumers to reexamine their spending habits. This has led to many putting off purchases and delaying actions for the time being.
Now is the time to future proof your brand, by leaning into upper funnel channels to during this lull in consumer action builds up brand equity among new and interested audiences. The time will come when they are ready to act, and your brand will have kept its momentum by staying the course and investing into future successes.