Marketers To AdAge: Expect Brand Marketing Rebound

Ad Age: “Do you think we’re going to see a rebound in brand marketing in the second half of the year?”

Marketers: “Yes

While the timing of macro-economic recovery is uncertain, smart Brand marketers know that a recession is (1) a great time to gain share of voice and reach consumers with a message that will pay dividends long term and (2) a critical time not to lose share of voice to competitors, especially generics, because winning it back is not a sure thing and very painful to do. As competitors over-focus on the bottom of the purchase funnel, maintaining proper balance throughout the funnel can drive sales in the short term, while positioning a Brand to accelerate into the inevitable recovery.

Furthermore, research has repeatedly shown that Brands that cut spending in economic downturns lose share to competitors and private label products. Permanently. When times are tough, we all must focus more than ever on getting the most impact out of every dollar of spend. But dollars smartly used can go much farther in this economy, so make sure the revised plan doesn’t put you on a track to permanent market share declines, but rather at an advantage to your competitors now and for years to come.

Cutting Spending Hurts Brands Long Term

Great article in Ad Age today.  Brands that cut spending in economic downturns lose share to private label products.  Permanently.  Some exceptionally smart marketers (P&G, L’Oreal) were identified as bucking the budget cutting trend last quarter, but the trend itself means that too many brands were pulling back on these critical ongoing investments.  When times are tough, we all must focus more than ever on getting the most impact out of every dollar of spend.  However, making cuts today that are proven to lead to permanent market share declines is exactly the sort of short-term thinking that got us into “this economy” in the first place.  At least Wall Street can blame the Fed…

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