Crisis is the time that drives down advertising budgets. What media strategies are most effective during this period?
Integrated Communication Agency Group OMD MD | PHD Group, its affiliate marketing analysis consulting agency BrandScience, and the creative agency Instinct have published the results of their research "Communication Strategies in a Recession", conducted to identify the most effective media strategies in times of crisis.
According to data obtained as a result of BrandScience's own tracking research, at the beginning of 2015, the society is more optimistic than during the 2008 global financial crisis. When asked whether consumers are worried about the crisis, only 35% of respondents noted the option “very worried”. At the end of 2008, this figure was twice as high. At the same time, 8% believe that there is no crisis in the country. This is due, first of all, to the fact that the population has a recent crisis experience behind them, as well as to an unprecedented rise in patriotic sentiments.
People believe that the situation in the country is deteriorating faster than their personal financial condition. 80% observe a negative change in the economic situation in the country, while only 56% note a deterioration in material conditions in the family. Less than 10% of respondents said that the situation has improved significantly or slightly.
The study also allowed us to determine what consumers have already encountered and what they expect in the near future. Most respondents believe that there will be no significant changes over the next year: neither the conditions of existing lending (59%) and difficulties in obtaining it (57%), nor the transition to unofficial wages (56%) and reduction / dismissal (54%) .
Slightly less than half of people believe that they will not be affected by the delay in wages (44%) and the reduction in additional incentives from the employer (43%). At the same time, a quarter of those participating in the survey said that they had already faced the lack of familiar goods in stores, and 26% - with a decrease or cancellation of premiums.
In a changing market and context, understanding what consumers value, what influences their actions and decisions, is especially important. This will help adapt the message and approach to communication and the business in general to the new reality. Also, during a recession, it is necessary to correctly identify the sensations and experiences characteristic of your target audience, which form the “sensual” background of making a purchase decision, and the basis of rational human behavior.
“The media strategy may differ depending on the sector in which the company operates and the dynamics of competitors' activity. The issue of reducing media budgets, first of all, depends on which category the advertiser represents and what goal is pursued. If the chosen strategy in a time of crisis is aimed at maintaining pre-recession turnover or increasing market share, the company should take a pronounced and aggressive position. If minimizing advertising costs is inevitable, it is worth focusing on more “flexible media” in terms of communication (radio, Internet). Also in the crisis, media with the lowest cost of contact with the audience (television), as well as media that stimulate purchase (digital) are in demand, ”says Denis Maksimov, Managing Director of OMD MD | PHD Group.
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