The effects of the COVID-19 pandemic vary around the world, but many countries have plunged into an economic recession as a result of business closures, layoffs, and stifled economic activities, among others. In an economic recession, consumer spending is expected to decrease and businesses will suffer as a result.
To survive the downturn, many businesses implement measures to keep expenses at a minimum. They usually turn to reducing ad budgets because, to them, there is no need to promote the business when consumers are limiting their spending.
This was demonstrated in the US during the 2008 Great Recession when overall ad spending dropped by 13%. A recent report by WARC also estimates that ad spending will fall by $63.4 billion in 2020, during the wake of the coronavirus crisis.
While this may sound reasonable, studies conducted on marketing during recessions conclude that cutting ad budgets will only make things worse— companies that do this run the risk of getting forgotten during the slump, which hurts their sales even more.
During the recovery, post-recession, their competitors that have continued advertising during the crisis will already be one step ahead of them, in terms of getting consumer attention.
So why is it important to advertise in a pandemic? Here are a few reasons why:
Consumers will demand more information from businesses
In the first few months of a recession, many businesses will close down. Supply chains will also be disrupted. Panic-buying for essential goods will ensue, leaving consumers scrambling to find options to get the essentials they need.
This disruption will be so profound that consumers will begin to demand more information from businesses— where to get the products they need, how to get them amidst government restrictions on movement, and whether it’s safe to get them. Advertising bridges this gap in knowledge.
Businesses must be able to appease this demand across all channels. Advertising online and in-store about product availabilities, store operations, and promotional activities lets customers— potential and existing— know that you’re there to accommodate their needs. It also lets you stand out when the rest of your competition is still looking for ways to adjust to a disrupted market.
Sure, overall consumer spending will decrease and businesses will experience “all-time lows” (which is why cash buffers are needed for every business), but establishing consumer trust through reliable communication is important to secure customer loyalty in a crucial period.
What is important, then, is to at least exert efforts to maintain your market share. Keep on advertising so you can continue to engage with your loyal customer base while reaching out to future customers.
Displays and banners keep foot traffic coming through the door
While the fear of virus transmission keeps customers indoors, some customers are bound to visit physical stores out of necessity— or preference. Displays and banners are a must to keep customers informed of the following:
- Whether it’s business as usual despite the pandemic
- If you’re implementing safety measures to avoid the transmission of the virus
- If you’re adjusting your operating hours
- Whether you’re creating new ways to serve customers such as product delivery or buy online, pick-up in store (BOPIS)
- Any other information to keep your customers updated of the changes during the pandemic
Signages keep customers guided when navigating the store. And using them is a great approach at a time when there are so many changes in the market.
Using displays and banners, acrylic sheets, and social distancing markers also helps in letting customers know that you’re adhering to safety guidelines and their welfare is your highest priority. They can also be used to reinforce prevention tips to minimize exposure to risk.
In-store advertising provides visual cues to promote in-demand products which make buying more convenient for visiting customers. They also help communicate value to customers who are price-sensitive.
Where should you put these signs?
- Outdoors – to inform the public in general about important business information such as store hours, service options, and product availability
- By the door – to inform customers of the best practices to reduce transmission and lessen risks
- By the checkout area – use POP displays to highlight in-demand essentials such as soaps, sanitizers, alcohol
- On the floor – to guide customers where to wait, where to go, and where to stand while at a safe distance from each other
When customers feel safe navigating in-store and when they don’t feel confused, it’ll be easier for them to come back and purchase from you again, keeping the traffic coming through the door. The role of customer experience is pivotal in building brand loyalty during and post-COVID19.
Advertising generates sales now and influences future sales
Targeted advertising helps companies generate sales now, especially when the product involved is in-demand during the pandemic. Products such as soaps, alcohol, and entertainment (services) are sought after in the market. Letting customers know that you sell them helps you generate sales to keep the cash flowing in.
Advertising also creates brand recall so that when consumer confidence in the market is restored and they start buying again, they’d have you top-of-mind. This determines your future sales.
There are no hard and fast rules when it comes to advertising in a global pandemic. But it’s best to keep these in mind when deciding to advertise during a rough time.
When it comes to high-quality displays and banners, there’s only one brand you can trust: Brandmaximizers. We offer premium quality displays and banners, as well as new normal essentials for your business.
