Modify Your Advertising Strategy for Tighter Budgets

Depending on how active their commercial operations are, sectors can be dark, shaded or spotlit. Dark-sector businesses — such as sports, travel and hospitality, and nonessential brick-and-mortar retail — have mostly suspended operations, and their advertising and brand marketing are minimal. Shaded sectors remain operational but face plummeting demand or supply chain and capacity disruptions; automotive and consumer durables, business-to-business products and services, energy and utilities, and prescription drugs fall into this category. Most shaded sectors initially cut back on advertising during the coronavirus outbreak but are now fine-tuning their creative executions to be sensitive to its impact.

A key priority for marketers is to keep customers loyal during the current crisis. “When you’re heading into uncertainty, taking care of your existing customers is extremely important,” says Eric Schmitt, Senior Director Analyst, Gartner. “Your messaging can be boiled down to three things: The safety of your customers and employees, the conveniences you offer — such as curbside pickup, telehealth visits or evening hours  — and what you’re doing to address financial uncertainty.”

For example, even dark-sector businesses such as travel are issuing extensions for expiring membership benefits, confirming rebooking flexibility and detailing hygiene measures in their direct messaging campaigns.

Review the tone of every message and how attuned it is to geographical location. “It’s important to tailor the message to the region in which it is running,” says Frank. “Pay close attention to variations in different parts of the country and the world.”

For maximum flexibility, consider making media planning decisions more frequently by moving to a weekly or biweekly planning cycle. Communicate regularly and openly with media agencies. In the current situation, with no historical data available, it’s critical to stay on top of conditions in different markets and keep track of what messaging works and what doesn’t.

“Marketers need to be ready to pivot quickly, particularly to make sure they’re not outrun by competitors,” says Frank. “But they also need to be realistic about the need to conserve funds in case there is an extended slowdown in the economy.”

Staying nimble and adjusting to situations as needed will enable advertisers to make the most of budgets that may shrink even further as the pandemic unfolds. A strategy of agility tempered with caution may well determine how marketers weather the current crisis.

Gartner clients can learn more in How to Advertise in Uncertain Times: Lessons From COVID-19 and visit the Gartner COVID-19 Resource Center to learn more about how to lead through the disruption of coronavirus.