At times of crisis and uncertainty, cutting back on marketing can seem like a logical and prudent decision, whether it’s to rein in costs or because it feels like the right thing to do in the circumstances. However, analysis of BrandZ’s 22 years of data on brands – and how they’ve grown over time, against the backdrop of numerous global and local events – indicates that the opposite is true.
The world’s strongest brands not only grow their brand value faster and deliver superior shareholder returns, they also recover much more quickly during difficult times. In fact, BrandZ data show that strong brands recovered nine times faster following the financial crisis of 2008. With this in mind, marketing budgets should be viewed as a critical investment, not as a cost that can be easily cut.
Of course, as my colleague Nigel Hollis discussed recently, the crisis triggered by COVID-19 is a unique one in that many businesses are physically unable to trade right now, so different circumstances will require nuanced courses of action. But whatever the business situation, as things start to stabilise we know that the brands that prioritise investing in innovation and building their equity will ensure they remain a relevant part of consumers’ day-to-day lives, and secure their position as a top choice when the world resumes some kind of normality.
So, what exactly should brands be doing to succeed at this time?
Join us on 12 May 2020 for our global webinar: 19 implications for brands in times of crisis, with case studies and proof points presented by global experts.