Don’t let Clients Make a Mistake and Cancel their Advertising

Cancellations are the last thing radio needs now. But it’s not a good idea for advertisers either. In fact, history bears out that cancelling advertising schedules in a crisis is a poor long-term strategy. Don’t let your clients make a mistake and cancel their advertising.

I’ve made it a mission to find reasons and encouraging examples you can share with an advertiser wanting to bail. Hopefully these will help you help your clients from deciding to completely cancel their schedules as we all press forward toward the light at the end of the tunnel.

Historically It’s Best to Be Seen AND Heard

According to Forbes, “There have been a number of studies going back nearly one century that point out the advantages of maintaining or even increasing ad budgets during a weaker economy. Those advertisers that maintained or grew their ad spending increased sales and market share during the recession and afterwards.”

Forbes goes on to note the advantages of advertising in a recession. These include less noise from competitors, projecting stability during crises, and an increase in “share of voice.” They note that increases in “share of voice” often lead to increases in “share of market.”

As examples, Forbes sites the following.

Quick Service Restaurants: 

In the 1990-91 recession, Pizza Hut and Taco Bell took advantage of McDonald’s decision to drop its advertising and promotion budget. As a result, Pizza Hut increased sales by 61%. Taco Bell sales grew by 40%. And McDonald’s sales declined by 28%.

Technology: 

During the “great recession,” Amazon sales grew by 28%. The tech company continued to innovate with new products during the slumping economy, most notably with new Kindle products… As a result, in the minds of consumers, Amazon became an innovative company by introducing a lower cost alternative to cash-strapped consumers.

It’s Natural to Want to Pull Back But…

The Drum reports that recovery from a zero-marketing budget will take as long as five years. “A brand judged to be on the way down, because it has fallen silent, will very rapidly see this manifested in word-of-mouth, which will accelerate the perception of failure.”

Conversely, brands that continue to advertise, project “the image of corporate stability… [and] convey feelings of authenticity, strength, and security,” says Orange 142. They add, “Advertisers that maintained or grew their ad spending showed an increase in sales and market share during the recession and beyond.”

And, from the New Yorker piece cited above,

“It’s natural to focus on what you can control: minimizing losses and improving short-term results… A major study, by the Strategic Planning Institute, of corporate behavior during the past thirty years found that reducing ad spending during recessions did improve companies’ return on capital. It also meant, though, that they grew less quickly in the years following recessions than more free-spending competitors did.”

Then there’s this from the Drum: recovery from a zero-marketing budget will take as long as five years.

Don’t let clients make a mistake and cancel their advertising.

How to Best Be Seen and Heard

Twitter’s Alex Josephson and Eimera Lambe caution brands not to capitalize on the health scare. However they offer this:

“Consumer behavior is still a thing, and we all still have various wants and needs. The best way that brands can address this…is to know themselves and the tone and personality with which they typically interact with people, and use that in a way that’s respectful and helpful. How can your product help? And when you figure that out, don’t hammer it home. This is a time for the restraint of a soft sell.”

Ad Age cites GM as a company doing something sensitive and helpful. They point to GM’s offer of 84 month loans at 0% interest and potential deferred payments for six months. In the words of GM’s Jim McCain, “demonstrate for costumers that we are there for them.”

It’s a Great Time to Tell Your Story

Bryan Weiser Global President of Business Intelligence at Group M puts it this way. “Sales will be lower all around during an economic downturn, but the advertising you do today will help you over the next year, the next five years and beyond. This is actually a good time to build trust.”

This is especially true for brands engaged in socially responsible efforts. Now is a smart time to tell their stories.

Tim Lardner, a client strategy partner at digital agency PMG adds this. “Brands can stay relevant by telling stories about what they’re doing to have a positive impact on their communities, their store associates and their customers”

Meanwhile, Frances Zelazny, CMO of Signals Analytics notes, “A crisis is temporary, but displaying the sense that you are in tune with your customer and providing specific messages can instill a sense of trust and value that will be long lasting.”

Then there are the brands that have reduced production of their “typical” products to manufacture things like hand sanitizer, masks and medical equipment.

And Country Artists are performing and conversing with fans via live feeds from their homes.

Radio is Made for These Times with Speed, Creativity and Storytelling

The Millward Brown report points out that “Creative had five times as much impact on profit as did budget allocation.”

Fortunately creative is something radio is great at. Need inspiration? Check out these 9 award winners here.

And it doesn’t hurt to remind ourselves and others that radio has always been great at telling stores, building brands and captivating listeners.

One Final Thought

Beasley Media Group VP/Sales Bob McCurdy puts it this way. “Visibility out-performs invisibility. The absent are rarely remembered or shopped. When businesses go “dark”, revenue plummets.”

Don’t let clients make a mistake and cancel their advertising.

Have an example that will help others? You’re encouraged to share it here.

Related: Radio’s Speed and Local Connectivity Make us the Right Medium at the Right Time

(c) 2020, Mike O’Malley/O’Malley Media Group, LLC/A&O&B

 Photo by NeONBRAND on Unsplash