Despite the situation we currently find ourselves in, and as we attempt to navigate our way through lockdowns, new ways of working and social distancing, the power of the brand is still an important factor when considering how your business will survive these turbulent times and be successful in the future.

Although this crisis is unlike any other, research has demonstrated that the brands who continue to communicate and have a voice through a recession are most likely to exit it quicker and with greater success than those that remove themselves from public view.

Benefit from Continued Presence

Following the financial crash in 2009, a much-cited critical review of past and present research Advertising in a Recession1, published by academics Gerard and Kethan Tellis, studied forty individual reports to understand the impact of marketing, and in particular advertising, in a recession. They found that those that cut back on advertising spending during a downturn generally hurt their sales during and after that recession. While those that maintained their presence benefited from increased sales and market share during and then, importantly, after the downturn.

A Bigger Slice of the Pie

One reason that this benefit, even with a reduced budget, is exaggerated in times of recession is that market noise is significantly reduced, therefore giving those brands who continue to communicate a much larger share of voice, at a lower cost. The report concludes that those who maintained their voice go on to see the benefits for several years afterwards, and, according to Tony Hillier of PIMS (Profit Impact of Market Strategy), this can be for up to three years. 

What Your Customers Want to Hear

Brand reputation was discussed in a recent article in the Raconteur Supplement to the Sunday Times, with commentators agreeing that the way brands act during this downturn will impact how they are viewed by their audiences in the long term. Research piece, Brand Marketing in a Crisis; Why Now is Not the Time for Silence2, published in March by Opinium, showed that the more vocal brands are seen to have responded better to the crisis.

Percentage of consumers who think brands in specific sectors have performed well compared with those that think they have heard from brands more than usual

Source:  Opinium 2020
 

Empathising with your customers demonstrates solidarity and is seen to be a clear and strong message to communicate during this crisis. Those that are vocal, and demonstrate they're taking steps to support their customers and clients, will have better brand reputations as we exit. This provides them with the enhanced brand awareness and positioning that will set them apart from their competition. However, we have to ensure that communication is relevant and measured. The Opinium report also found that 38% of consumers wanted to hear from those on the front line of a business, 31% from the CEO or business leader but only 5% and 4% wanted to hear from influencers and celebrities respectively.

Who would you like to hear from in a crisis?

Source: Opinium 2020

This clearly demonstrates that a brand's biggest assets are its people, and especially those that are continuing to deliver for their customers and clients. They're your brand ambassadors and their stories and messages can be a powerful tool to ensure your brand profile stays strong and relevant.

 Exit Stronger than the Competition

These reports provide interesting reading for both B2C and B2B marketers. Combining their insight suggests that brands should stay present in the market throughout a crisis, keeping in front of customers in an empathetic, supportive, relevant and, most importantly, real way.

A combination of PR, direct communications, social media and advertising can deliver the brand profile that will see revenues grow for years to come post Covid-19. And, in the current climate, there are opportunities to bring real stories to life across the media. We've been working with several clients to profile how they are operating and maintaining safe working, with coverage across print, radio and TV. The media are interested in their stories and happy to engage where the story is relevant and provides advice to others. See our news piece on Oscar Acoustics here and our case study on Shine here.

Alongside this, we are seeing increased interaction levels and ROI from content as people spend more time online searching out knowledge. Pay Per Click and media rates have also decreased due to less competition; across Google Ads alone we have seen CPCs reduce by up to two thirds for some clients, giving them a significantly louder voice, at a lower cost.

 We know this is a difficult time for many businesses and some may not make it to the other side of Covid-19. However, for those that do have the resources and ambition, there are opportunities to improve brand perceptions and awareness. Through a bigger share of voice, brands can come through this stronger and more engaged with audiences. And, as the research suggests, those that are able may see the rewards for several years to come.

Get in touch. Contact Liam Bateman at liamb@thinktank.org.uk to find out how you can maintain your brand profile during the current crisis.

1. Advertising in a Recession, Gerard Tellis, Ketahn Tellis, 2009 -  https://www.academia.edu/2309274/Research1_on_Advertising_in_a_Recession

2. Brand marketing in a crisis: why now is not the time for silence, Opinium https://www.opinium.co.uk/brand-marketing-in-a-crisis-why-now-is-not-the-time-for-silence/