February 1, 2022

3 Great Reasons for Always On Advertising

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As the saying goes, “Advertising is like an aeroplane engine – if you switch it off your brand gradually loses speed and altitude”, Professor Rachel Kennedy, Ehrenberg-Bass Institute.

There’s a fair bit of economic turbulence right now. With increased cost of goods, supply chain issues and recent talk of interest rate rises, it’s no surprise that CFOs are looking to cut back on variable spending – with a keen eye on defending margin and EBIT.

Despite some empathy for the desire to throttle back, this adage has never rung truer – when times are good you should advertise, when times are tough you must advertise. The chart below from Millward Brown data, illustrates how quickly brand fortunes can nosedive when you turn off top of funnel communications.


Studies going back over a century* have proven that an always on approach, or even increasing your advertising, can boost sales and market share by 250%* during and post a crisis.
Great brands maintain an always on share of voice approach, versus switching to short-term sales spikes, and here are 3 great reasons why:

    – Advertising and marketing rates drop creating a ‘buyer’s market’ for media. Studies have shown that sales activation advertising – which provides short-term sales response – increases during an economic downturn, which can make cut-through harder to achieve

    – The cost to get back to your original market share, (pre-cutting-back on spend), is 4-5 times higher.* Plus, if you invest in short term sales activation at the cost of all brand building communications the impact on your brand can be a 56% loss of effectiveness longer-term**

    – When others fall silent, you’re giving your brand a chance to be heard. Extra ‘share of voice’ drives greater mental availability has been proven to drive significant positive business effects like customer acquisition, pricing power and longer-term growth***

    In times of uncertainty, people don’t stop looking to brands and media. If anything, they look at trusted voices and channels more – for hope, guidance, products and services – especially when socially isolated.

    As history has proved, inaction, or cutting back advertising has significant negative effects on your business. Get great advice from experts to refocus your strategic approach, balance efficiency and effectiveness and let us help you reframe advertising investment as a growth lever for your business.

    Be specific, be heard and don’t lose your market share. Refocus on protecting long-term value in addition to short-term goals – Lionize can help you balance your spend effectively and efficiently to achieve both.



    ** https://www.thinkbox.tv/research/thinkbox-research/effectiveness-in-context-free-download/
    *** https://advertisingcouncil.org.au/resources/industry-reports/to-esov-and-beyond/