A 2002 McKinsey report states that significant differences between winners and losers during the recession were concerning their marketing and advertising spending.
This piece argues businesses should wisely allocate their advertising budget during uncertain market situations like COVID-19 outbreak. According to McGraw-Hill Research, companies that maintained or increased their advertising expenditures during the 1981-82 recession, received higher sales growth.
Brands should take references from how leaders in the past navigated their way in such a recessionary market. For instance, when Post cut down their advertising budget during the “Great Depression”, Kellogg’s doubled their investment and eventually got 30% greater profits.
The author suggests businesses can be “scrappy” with their marketing strategies and find ways to differentiate. Businesses can also strategically invest in their website content and SEO to enhance its ability to convert traffic into customers.
[3 minute read]