These are, indeed, the times that try mens’ souls.
Even for those of us who lived through the late 80s and other recessions, this one is particularly bad. GDP down 3.8% (a new record), job losses at an all-time, post-Depression high, and consumer confidence in tatters. Sheesh. Interestingly, the general reaction for brands seems to mirror that of the credit institutions—pull back and wait. At some point, the creditors will have to wake up and realize you can’t put your core business on the bench. Credit will flow again and the wheels will be put back on the economic machine.
The same is true for brands. While we can all understand belt-tightening as an internal reaction given the blood bath of the last quarter 2008, is 2009 really the time for brands to continue pulling an Ostrich? Is this really the time to spend less and spend only on traditional media models we know are less and less effective? I think not and I don’t think I am alone.
The CEOs of both P&G and Hershey have both weighed in with the observation that NOW is exactly the time to spend on marketing and branding. Noting that for the first time in recent memory ROI for marketing and ad spend may outpace cost, Hershey CEO, David West is bumping up media spend in 2009 by over 25%. Not only is this due to the raw numbers differential between cost and return, but the company sees the current market as an opportunity to grab market share and consumer loyalty while the competitors sit on the bench.
So now is the time to spend. But that is only half of it. Spend wisely. To us, that means put your money toward reaching your targets utilizing modern technologies and realities. The “lean back” audience is gone and brands need to reach the increasingly demanding and proactive “lean forwards” that will not be “sold”. There is a new equation / sheriff in town that says the target audience wants great content and brand message (value) delivered to them on demand and on their terms. The “hope we find them” traditional models just won’t work. What will work is a personal brand message delivered to them where, how, and when they want it. In the digital age, this means using online video, social networking, vertical passion centers and the like to get the consumer what they want at their time of want or need.
It’s all about media, branding and marketing spend that works in the new reality we live in. For a great summation of some specific, stop-gap measures, that will allow brands to ride out the worst of this as they embrace and shift toward this new equation and participant/brand paradigm, see Optimedia CEO, Antony Young’s list featured in a recent MediaPost.
So brands need to realize that the only thing they have to fear is spending itself. They must realize that smart spend to reach and converse with the new brand participants is the key to not only riding out this storm, but cost-effectively grabbing additional share and brand loyalty.
Peter J. Schankowitz
Thanks for this great reminder Peter! And nice to have the references of P&G and Hershey echoing this classic truism. When the economic downturns are a great time to invest in the future, and that means spend it if you got it.
So in addition to smart ad/media mix that leans towards digital and social media, I think we need to emphasize the theme of brand storytelling here. Because at the end of the day, it doesn’t matter how much you spend – its whether you have a story that people can believe in.
This one issue is what is at the crux of the entire downturn – we’ve all stopped believing in the stories we’re being told: from the banks, from the government, from our employers, and of course from big consumer brands.
Your link to the MediaPost article highlights one of the key implications:
“”Quelch has suggested a new category of consumer, “The Simplifiers,” who feel they have too many possessions and “reject the marketer’s continual pressure to spend more money on possessions rather than education, health care and social goods.” But the Simplifier isn’t rejecting consumption out of hand: “They want to collect experiences … Dining out, travel, learning a new sport will prove more resilient than expected in the face of recession.”"”
The net net of this is the following story implications:
1. Make sure that your brand has a clear promise.
2. Ensure that you CAN deliver on that promise.
3. Offer memorable brand experiences that make the promise reality.
Rather simple steps, if we could only figure out a way to execute within our broken systems and competing storylines.
Michael Margolis
Brand Storyteller
http://www.thirsty-fish.com
http://www.popanthropology.com
You are one hundred percent correct. It all starts with the brand story. Is it engaging, entertaining—–and to your point—-is it AUTHENTIC? Trust levels are lower than ever for never every aspect of life. We don’t believe our leaders and we sure as hell are wary of the “sellers”. That’s why I loved that “Simplifiers” notion. It puts the current consumer in an understandable light. They don’t want to be sold, they want brands to EARN their loyalty. Tell us WHY we should bother with your brand? Prove it? Show me you really love me by actually listening to me! I know this is a bit hyperbolic, but the core is true. Long live a good story.