As states begin to reopen, one of the most pressing questions that we’re all facing is: “How do we make an economic recovery as quickly as possible?”
To say that the coronavirus outbreak has crippled businesses would be an understatement, as it’s estimated that it will cost the global economy $2.7 trillion. However, everyone from “mom-and-pop” shops to multinational conglomerates are working around the clock to come up with solutions.
So which industries are paving the way toward economic recovery?
While retail, manufacturing, and the travel industry have been in the spotlight lately, many are still overlooking the critical role that marketers will play in helping businesses regain lost revenue—and create more jobs across the country.
Coronavirus presents new advertising challenges, but this wouldn’t be the first time marketers have stepped in to save businesses…
During the 2008 market crash, companies realized that when they decreased their spending on advertising, they would eventually lose market share once the economy recovered (according to a study at the Ehrenberg-Bass Institute for Marketing Science). Regrettably, in response to the outbreak, many companies have decided to decrease their ad spending. According to researchers at MoffettNathanson, the advertising industry will face $26 billion in lost revenue because of the coronavirus. Although it might make sense for companies to lower their overhead initially, history shows that in the long-term this approach only hurts businesses during an economic slump. In fact, researchers McGraw-Hill studied the 1981 recession and found that the companies that advertised heavily got 256% higher sales than those who didn’t.
So how can marketers help the U.S. make an economic recovery?
Regardless of current circumstances, the evidence is clear: Now, more than ever, it’s imperative that you maintain and build relationships with your customers and provide them with value. With less face-to-face interaction, consumers are now relying on digital platforms to find out what products and services are available to them.
By implementing clever campaigns, marketers can educate customers about updated products, digital events, and any revisions to services that have been made to adapt to the post-lockdown market. Staying in touch with customers also helps maintain a sense of normalcy for the public. One study showed that 43% of consumers find it reassuring to hear from trusted brands during these turbulent periods.
With more people online more frequently than ever (a 60% increase in screen time), marketers are quickly coming up with new strategies to leverage digital platforms. Some possible solutions include…
B2B companies that used to rely on trade shows are switching to virtual events (on Facebook or LinkedIn Live, for instance) to inform their audiences and stay in touch with them.
Offering and promoting new payment plans that could lower the financial burden of your customers and incentivize them to make a purchase today.
Revising your brand’s messaging to adapt to changing consumer behavior. McDonald’s is planning to increase its marketing spending, emphasizing the promotion of their breakfast menu (as sales had previously dropped with fewer people eating before work/school).
In the coming weeks, more companies will catch on and ramp up their digital marketing efforts to track consumer sentiment and promote their products/services. When stimulus checks were sent out, online ads increased by 29%, showing that marketers are ready to connect brands and consumers again.
On a grander scale, the role of marketers is to help businesses grow their revenue and reach more customers across the country. And to meet those customers’ demands, companies will need to hire more staff, thereby lowering the unemployment rate. By helping more people return to work and generate disposable income, marketers will find themselves playing a vital role in rebuilding a healthy, flourishing economy.
Ready to pivot and pioneer your business forward? Schedule your complimentary marketing consultation with a Lead Marketer today. Call (813) 448-2873 or email here.