Depending on whose headlines you believe, the globe is either already experiencing a recession or is on the verge of one. Consumers and advertisers are anticipating consequences for both the scenarios. But this does not mean the advertising dollars stop working for you. Past experiences can be a good guide to understanding how consumers think during these times and how to advertise accordingly.
Consumers Experience During Economic Downturns
Before learning how to recession-proof your ideas, let us understand how different consumers experience economic downturns and recessions differently.
- Consumers have always been extremely price-sensitive, but this has never been truer than it is now.
- One in five customers are cutting back on extras and delaying significant purchases, such as a new car or substantial home modifications.
- With 15% people purchasing more used or reconditioned things and 18% experimenting with selling their own belongings, they are transitioning to a more conservative and ecological lifestyle.
Five Steps To Recession-Proof Your Ads
Now let us look at some recession-proof ads that appeal to all kinds of audiences. Here are five steps you may follow to assist in achieving this objective:
- Show why your products matter: Your advertising copy should emphasize the benefits of doing business with you rather than your competitors.
- Personalize your brand: Establish a real relationship with your customers by understanding their attitudes and what matters most to them.
- Innovate with products: It is shown that 64% of successful brand campaigns support new product launches in a recession.
- Deliver your ads in the appropriate environment: Contextual advertisements are 2.2 times more remembered than traditional commercials, making them a better experience for consumers and more effective for companies.
- Utilize the chance to capture market share: This is your chance to stand out from the crowd and get new clients when your rivals make cuts.
Downturns and recessions are challenging times. However, they don’t have to be restrictive. According to research from Bain & Company and McGraw-Hill, businesses that planned ahead for a recession grew at a 17% compound annual growth rate as opposed to 0% for businesses that did not.
Consumers still need to buy items at the end of the day. You simply need to accommodate them despite difficult economic conditions. Keep your messages useful, human and authentic —and deliver them in the right context — and they’ll reward you with their loyalty, often for years to come.