Supply Chain Issues
Global supply chains slowed to a crawl in 2021 due to the ongoing fallout from the Covid-19 pandemic. Since 2020, many workers have had to miss work due to Covid-19 infections, which led to staff shortages. Here at the tail end of 2022, labor shortages have remained. Labor data still shows a gap of more than 5 million between open jobs and available workers, and inflation is the highest it’s been in three decades.
In addition to consumers’ wallets feeling the pinch, businesses have also paid higher prices. Unfortunately, things are unlikely to change anytime soon. Consumers will always prefer lower pricing, while companies must keep costs down due to competition—even if they’re stretched thin.
Advertising in Tough Times
The constant kinks in the supply chain and inflation that refuse to abate cause plenty of headaches for both companies and consumers. The effects have rippled to marketing, where many brands have struggled to pitch goods that are either stuck in transit or cost a lot more than they used to. While it may not make sense to increase your ad spend per se, maintaining a steady budget can help you secure the share of voice you’ve already built with your consumers. It’s essential to step up to the plate.
There are nuanced strategies that should be considered when determining the ROI of a campaign. For example, different media drive different levels of attention and engagement, and incremental reach. There is also the social capital that some media can drive. As this article states: “Traditional broadcast communications not only reach a large audience, but they also reach that audience publicly. In mass media, not only do many people see your advert, but they see many other people see your advert as well”, which can make some items more desirable. How you allocate your media should drive your objectives for both brand, demand, and engagement, and success should be measured by how well they reach instead of over-saturating the market.
While it may be instinctive to focus on driving quick wins (e.g., sales and conversions), it’s equally important to play the long game. Maintaining customer trust is critical, especially in an economy adapting to a post-pandemic world. Preserving brand equity can show resilience. But it’s also an act of self-preservation. Maintaining a responsible, consistent marketing spend helps your customers know you’re here for them, even when times are tough.
We’re here to help. Reach out to Francis at fskipper@mittcom.com for a free audit.