Due to corona crisis, many companies were forced to save money. Very often, they did so by cutting their marketing budget. To prevent companies from this fatal error, VMLY&R created a campaign, with provocative and informative texts for IAA Austria.
Its content: studies that not only show the massive negative effect, if you do not spend your money on advertising in a crisis, they also show that advertising has great impact, especially during those times:
- If a brand disappears during a crisis, people forget about the brand’s existence. A six months‘ break of advertising in TV leads to a 39% reduction of awareness.
- Brands that stop advertising during uncertain times, needed approximately five years to gain the same market share and profitability from before.
- In a crisis, the probability to buy a different brand is three times higher than usual. Under normal circumstances, only 8% prefer to buy a new brand, compared to 21% in uncertain times.
- Brands that spend more marketing budget in 2003 and 2009, had a bigger market share afterwards.
- Consumers prefer brands that they can rely on and not leave them alone during a crisis. Loyalty leads to loyalty. In times of economic downturn, brands do not only have to face a perhaps loss, but also a rise of market share.
The great success of the IAA campaign proofed that the statements above are true.