Despite the supply chain issues, it’s still a great time to advertise

It’s no secret that more and more consumers are increasingly frustrated with lingering supply chain issues, especially with the holidays approaching – some brands are in a hurry to try to release reviews. vacation announcements even earlier than originally planned.

A study by Oracle found that 92% of consumers think more disruption is coming, 66% fear it will never stop, while 80% say delays and shortages could cause them to end. links with their favorite brands. As a result, many marketers cut back on ad spend for fear that they might not be able to deliver on an ad’s promise. However, there is an inherent danger in this reduction in expenditure, because as an industry leader In other words: “.

All of this is on top of the fact that many brands have drastically cut their ad spending during the height of the pandemic. Example of Coca-Cola. During a second quarter earnings call in July 2020, CEO James Quincey asked aloud, presumably rhetorically: “Why would I want to spend money for a period if I can’t get the return, especially if there is a strong lock? Adding that they (Coca-Cola) thought “no marketing is going to make a big difference in the second quarter, so we fell back sharply.”

On the flip side, there were brands like P&G and PepsiCo, which not only didn’t cut ad spend, but also increased the amount they spent on advertising and marketing. At the end of 2020, P&G and PepsiCo each saw an increase in their net sales with growth of 4% and 5%, respectively, compared to Coca-Cola, which saw its net sales decline by 11%. for 2020.

See more: Towards Greater Transparency – 5 Steps to Maintaining Your Ads.txt File

Start with the why

The two obvious questions to ask are: why and how.

Why should brands not only NOT cut ad spend, but increase it, and what exactly is the best way to do it?

To quote Simon Sinek, let’s start with the why – why continue to advertise and even increase the amount a brand spends on advertising?

The first reason dates back to Google’s decision to block third-party cookies from its Chrome browser. While Google delayed moving from 2022 to the end of 2023, the fact remains that at some point they will take this action, which will have a significant impact on the ability of advertisers to reach new consumers in the same way as before.

So smart advertisers will take full advantage of the time left before Google “flips the switch” and increase the amount of first-party data they capture, with a clear exchange of value for the consumer. But even without considering the possible depreciation of Google’s third-party cookies, brands must create more explicit value exchanges with their audiences to survive and thrive in today’s world. Consumer expectations are at an all time high and will only increase. They expect brands to “know” them; know their likes, dislikes, preferences, etc. The best way to really ‘know’ your customer is to capture first party data. And one way to do that is, you guessed it, to reach more potential customers through advertising and offer them something of value to build that relationship.

Heinz is one example. Over the past Halloween, the brand turned its flagship product, Ketchup, into a relationship-building and data-generating tool because it wrapped it up under the guise of fake blood. They created an e-commerce microsite where they offered consumers the option to purchase merchandise such as tomato blood costume kits, masks, and other Halloween-themed outfits such as mummies. and pirates.

Another reason to increase ad spend is the upcoming holidays. While not everyone celebrates the same holidays – and some celebrate NONE – the fact is that at this time of year a lot of people are looking to buy gifts, and not just for others.

While gifts are a priority for many, other relevant fashionable topics during the season include home entertaining, cooking, travel, holiday decorating, and more. The point is, vacations aren’t just about shopping for others; there are also many other “things” and reasons that people shop for this time of year.

Plus, the point is, this year will be very different from last year. Instead of relying primarily on virtual meetings, this year for many it will be coming back to face-to-face meetings. That in itself amounts to even more reasons to advertise, as more people will look to purchase a bottle of wine, fruit basket, or other item that lends itself to in-person use rather than a virtual one, not to mention plane tickets and hotel accommodation.

And now for the how

So now you know why brands have to keep advertising and even increase their ad spend. Now comes the how.

The easy answer is to spend more money on advertising! Of course, it’s not that easy, because as John Wanamaker once said: “Half the money I spend on advertising is wasted; the problem is, I don’t know which half.

I actually remembered this quote while reading a fantastic article titled Efficiency errors. In the article, the author artfully points out the misconception that many advertisers have regarding paid social media and online video. Since these formats can be targeted to reach defined audiences while providing a measurable response, there is a perception that they provide the best return on investment.

However, there are more nuanced strategies that must be taken into account when determining a campaign’s ROI. For example, different media result in different levels of Warning and incremental engagement and reach. There is also the social capital that certain media can convey. As the above-mentioned article adds quite succinctly: “Traditional broadcast communications not only reach a large audience, but they also reach that audience in public. In the mass media, not only do a lot of people see your ad, but they also see a lot of other people seeing your ad, ”which can make certain articles more coveted.

The lesson is that how you allocate your media should be guided by your goals for both brand and demand, the ability of each to generate the right engagement, and how they add reach instead of oversaturation. .

In addition to increasing their ad spend, savvy advertisers are also looking for other ways to collect first-party data. Therefore, as a recent Marketing infusion Piece said, “Brands like Cheez-It, Dunkin ‘Donuts and Panera are suddenly selling loot; and why brands ranging from McDonald’s to Taco Bell are investing in loyalty programs. It all comes back to something I said earlier; brands must create more value exchanges with their audience, whether existing or potential.

See more: Advertising spend in 2022: Things to consider before your next campaign

Final thoughts

In the short term, the holidays are fast approaching. I know this is not news, and like every year, the holidays come and go. The long term, however, comes to terms as we envision prolonged supply chain disruptions.

Whether short term or long term, the fact remains that now is not the time to cut back on your ad spend. It’s just not worth the aforementioned “erosion of shares and brand awareness” that any brand is sure to encounter if they go down the path of least resistance.

How do you divide your media spending this holiday season? Share with us on LinkedIn, Twitter, Where Facebook. We would love to hear from you.

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