Brands and advertisers just now settling into a post-COVID marketing rhythm could be facing another major disruption, this time in the form of a global recession. With 60% of economists predicting a Euro-zone recession, and an expected global growth rate of only 2.9%โdown from 4.6% at the beginning of the yearโan economic slowdown seems inevitable.
And as consumers adjust their spending to adapt to inflation and higher interest rates, many brands and advertisers are following suit. According to data from Nielsen Ad Intel, the U.S. advertising marketplace shrank by 7% in the second quarter of 2022 versus the same time last year, signaling that many marketers expect, or have already experienced, cuts to their budgets.ย
ใใใใใกใใฃใขใธใฎๆฏๅบใๆธใใใใจใฏใ็ญๆ็ใชไบ็ฎใฎๅ้กใงใฏ็ใซใใชใฃใฆใใใใใซ่ฆใใใใใใใชใใใไธๆณใฎๅฝฑ้ฟใ่ปฝๆธใใใใผใฑใใฃใณใฐไบ็ฎใฎๅนๆใๆๅคงๅใใใใจใซ้็นใ็ฝฎใใใผใฑใใฃใณใฐๆ ๅฝ่ ใฏใๅๅพฉใ่ใใใใฎใใใซๆฏๅบใใๅฟ ่ฆใใใใ
ไธๆณใฏ้ท็ถใใใชใ
ไธๆณใฎ้ทๆๅใๆใใใใผใฑใใฃใณใฐๆ ๅฝ่ ใซใจใฃใฆๆๅ ฑใชใฎใฏใๅคใใฎไธๆณใฏ็ญๆ้ใง็ตใใใจใใใใจใ ใๆญดๅฒ็ใซ่ฆใใจใไธๆณใฎ75๏ผ ใฏ1ๅนดไปฅๅ ใซ็ตใใใ30๏ผ ใฏ2ๅๅๆใใ็ถใใชใใใใฎใใใๆฏๅบใๅๆธใใฆใ็ญๆ็ใชใใฎใงใใใๅ็ฎ็ใช็ฏ็ดใซใใใชใใชใๅฏ่ฝๆงใ้ซใใ
Considering most brands are already under-spendingโdepressing their ROIs by a median of 50%โany additional cutting of media expenses could only serve to reduce ROI further, at a time when brands need to maximize profits most.
The solution isnโt to slash the budget, but to optimize media mix and invest in channels that are performing well. Finding the right balance ensures that spending is properly allocated for reach, efficiency and frequency. For example, an auto manufacturer recently increased its reach by 26% and its impressions by more than 39% by simply optimizing its media allocation without adjusting its budget.
ใพใใไธๆณๆใซใกใใฃใขใซๆ่ณใใใใจใฏใๅฎ้ใซใใฉใณใใฎ็ต่ฒป็ฏๆธใซใคใชใใใใจใใใใๆฅญ็ใฎๅพ้ใฏใๅบๅใใคใคใผใซๆๅฉใช้็ตฆใฎใใคใใใบใ ใ็ใฟๅบใใใกใใฃใขใณในใใไธใใใใใ ใๅฎ้ใไธๆณๆใซใกใใฃใขๆ่ณใๅผทๅใใใใฉใณใใใใใๆๅฉใชใกใใฃใขใณในใ็ฐๅขใซๅ ใใฆใใใฉใณใใฏ็ซถๅไป็คพใๅบๅใ็ธฎๅฐใใฆใใใใจใซๆฐใฅใใใใใใชใใ
ไธๆณไธใงใๆ้ทใฏๅฏ่ฝ
Before assuming a slump in sales due to a recession, brands should assess the landscape and closely follow consumer behavior for changes in spending patterns. A shift in spending habits from large indulgences to small indulgences, for example, creates opportunity for growth in certain categories, like lipstick, while contracting others, like dining and hospitality.
ใใใฆใๆถ่ฒป่ ใไพกๆ ผใซๅฏพใใฆใใๆๆใซใชใใซใคใใใใฉใณใใฏใใใซๅใใใฆใกใใฃใขใใฉใณใจใกใใปใผใธใณใฐใๅคใใฆใใๅฟ ่ฆใใใใไธๆณใซใใใใใกใใปใผใธใณใฐใฏใใใฉใณใใฎไพกๅคใๅผทๅใใไธๆณใไนใ่ถใใฆๆถ่ฒป่ ใฎใญใคใคใชใใฃใ็ขบไฟใใใฎใซๅฝน็ซใคใ
ไธๆณไธใฎๆฝๅจ็ใชใซใใดใชใผๆ้ทใๆๅคง้ใซๆดป็จใใใใใฉใณใใๅบๅไธปใฏใๆถ่ฒป่ ่กๅใๅๆใใฆใกใใปใผใธใๆ้ฉๅใใๅบๅไบ็ฎใคใณใใฏใใ้ซใใใใจใซๆณจๅใในใใงใใใ
ๆญฃใใ๏ผใซใใใใใ
ไบ็ฎๅๆธใฏ้ฟใใใใชใใใจใใใใพใใๆฏๅบใ่ชฟๆดใใชใใใฐใชใใชใใใจใๅใใฃใฆใใใฎใงใใใฐใ้ฉๅใชๅ ดๆใง้ฉๅใชใณในใใๅๆธใใๆฎใใฎไบ็ฎใงๆๅคง้ใฎๅนๆใไธใใROIใธใฎๆชๅฝฑ้ฟใๆๅฐ้ใซๆใใใใใซใใพใใใใ
And while pulling back on media spending may seem like the obvious way to cut costs and hit financial targets, the benefit can be relatively low. A Nielsen study of media plans found that only 25% of channel-level investments were too high to maximize ROI, and within this group, the median overspend amount was 32%. And while reducing spend would improve channel ROI by a modest 4%, brands would also see significantly reduced sales volume due to a drop in ad-driven sales.
It can also be tempting to increase promotions when consumers decrease spending, but this approach comes with its own challenges. Promotions done regularly can condition consumers to only buy when there is a promotion, leading to lower sales on regularly-priced items and margin compression. ROI also tends to be lower for promotionsโ45% lower than that of media, according to Nielsen marketing mix modelsโas only a small portion of promotional sales are truly incremental, and promo sales need to be much higher to make up for lost margins.
ใใญใขใผใทใงใณใซๅคงใใไพๅญใใใฎใงใฏใชใใROIใธใฎๅฝฑ้ฟใๆๅฐ้ใซๆใใชใใใใฉใฎใใฃใใซใๅๆธใพใใฏ็ธฎๅฐใงใใใใๆค่จใใใใใใใฃใใซใฎ็ตๆใใใงใซๅดใใชใใฎใงใใใฐใใใฎใใฃใใซใๅฎๅ จใซใซใใใใใใๅชใใๆๆจใจ้ซใROIใ่ฆ่พผใใใใฃใใซใซ่ฒป็จใๅ้ ๅใใๆนใใใใใใใใชใใ
ๆ็ต็ใซใฉใฎใใใชใกใใฃใขใปใใใฏในใจไบ็ฎ้ ๅใๆฑบๅฎใใใซใใฆใใใฉใฎใใใชๆฏๅบใงใใใพใฃใใๆฏๅบใใชใใใใฏใพใใ ใจใใใใจใ่ฆใใฆใใใฆใปใใใใใผใซใปใณใฎใใผใฑใใฃใณใฐใปใใใฏในใปใขใใซใซใใใจใๆพ้ใไผๆญขใใใใฉใณใใฏใๅๅๆใใจใซ้ทๆ็ใชๅ็ใฎ2๏ผ ใๅคฑใใใจใไบๆณใใใใกใใฃใขๆดปๅใๅ้ใใฆใใใใฎไผๆญขใซใใใจใฏใคใใฃๆๅคฑใๅๅพฉใใใซใฏ3๏ฝ5ๅนดใใใใจใใใใใผใซใปใณใฎใใผใฟใซใใใฐใใใผใฑใใฃใณใฐใฏใใฉใณใใปใจใฏใคใใฃใฎ10๏ผ ๏ฝ35๏ผ ใๅ ใใใ
