Recession-Proof Your TV Campaign
The National Bureau of Economic Research has declared that the U.S. economy entered a recession in December of last year. Of course, the news is hardly groundbreaking news these days.
In a recession, customers don’t stop buying; they just stop “over-buying”. In other words, they start second guessing that $4 Starbucks latte and start talking about how great $.99 Dunkin Donuts coffee really is after all. Spending more conservatively on small items helps the American consumer rationalize larger purchases like cars, vacations, and clothes.
So what to do when your local market economics wither? You need to make sure that your television ad campaign generates an even higher Return on Investment to compensate for a smaller market opportunity.
How do you do it? Simple. You “Recession-Proof” your television campaign. Here are a few tips on how to do it:
Present a Superior Value:
The consumer wants to see a commercial from you that can help her stretch her dollar. Auto dealers are moving toward advertising and selling more preowned cars instead of new cars. These used cars are a great value and the dealer makes money on these used car sales at a rate of five to one versus new. Department stores start gift with purchase events. Furniture stores are offering full room discount deals. Grocery stores start accepting competitor’s coupons. You get the picture. Think about what value statement you can create that makes your product or service a more attractive value than those of your competition.
Create a Renewed Sense of Urgency:
In a slower economic cycle consumers shop longer and buy slower. However, we find that there is always a sector of “Now” buyers that will respond to short term sales promotions. Home builder clients of ours are proving this to be true in all kinds of regional economies. With so much negative press, even attractive home purchase opportunities are second guessed by shoppers. What can you do to create excitement and a short term sales promotion and communicate this excitement in your commercial? Examine the offers in your commercials. Are the motivating? Would You buy from You?
Eliminate Wasted Ad Dollars:
If you normally buy multiple television stations on your buy, perhaps it’s time to choose a few friends from the group of stations. Approach your television station partners and ask for creative support. Ask how these stations can stretch your dollar. If you approach in the right spirit, most station managers will join your cause and help. In a battle, chose your foxhole friends carefully. This is not the time to demand added value…this is the time to request creative support and new ideas.
Buy Smarter:
Negotiate an annual plan instead a quarterly buy. Television stations can help you on cost if you help them by planning. Next, analyze your current cost per thousand. Has it slowly increased as you’ve added dayparts to your buys? You may find better results in reducing your daypart count and instead double spotting lower cost per thousand areas such as local news and syndicated programming. Moving prime dollars to access can increase your frequency in your buy and create better response. Adding more AM news to your buys can increase reach and add frequency as morning news programs in some markets rival local evening news reach numbers.
Look the Part:
Market share can be bought “on the cheap” when your competition stops being aggressive and leaves the marketplace. If you see that a major player goes quiet, then get loud. Pick up their customers and try to keep them. Several of our clients had terrific years in 2007 because while their competition pulled their TV ads in favor of more “measurable” direct mail, we created a new pricing strategy and which enhanced their TV presence and in some cases doubled their market share! The smartest thing to do in a recession is to present your business as aggressive and in search of value shoppers. Some clients even open up discount themed departments to represent this theme visually in their stores.
These are just a few ways to stretch your television advertising dollar in a slow market. Hey, nobody asks for a down economic cycle. So let’s stay smart and give the customer what they want and show the message the way they want to see. Use your resources creatively. Recession proof your campaign right now and, while your competition struggles, you may not even miss a step.
Written by Adam Armbruster; originally posted on esacompany.com
Category Advertising, Economy | Tags: Advertising,Economy,Recession,TV
By Motivity Pictures on July 27, 2009
Would you comment a bit on the production cost itself? How much do you recommend spending on the actual shooting and editing of the spots?
I find so many people decide to cut cost on production once they see the cost of advertising and I believe this is a HUGE mistake.
Thanks!
David