The world is facing a generational crisis. The results of the Covid-19 pandemic have not only had a high price in regards to human lives, but the consequences to business have been devastating. Many companies have shuttered or filed for bankruptcy, while others have been forced to furlough and reduce costs to a minimum, in the hopes of surviving. 

According to Campaign.co.uk, marketing budgets have decreased at their fastest rate since 2009 as brands feel this economic chill, resulting in an average reduction of -6.1%. Naturally,  PR, event, and market research are the ones to be hardest affected by this. 

"When recession looms, it is understandable if businesses try and shore up short-term profits by cutting variable expenditure, such as advertising. However, as our evidence from past downturns shows, unless companies are saving cash simply to survive, or because they can no longer supply advertised services, cutting ad budgets – relative to competitor spend – is a high-risk strategy.” — IPA director-general Paul Bainsfair

It is safe to say that for some their business continuity has reached critical heights, while for others, it is more or less business as usual. Some categories are seeing growth as a result of the global quarantines,  making online shopping and eCommerce solutions the preferred alternative. In these kinds of extremes, I do think the term “Disrupt or Die” becomes ever more important. Now is the time to have a deep and thorough look at your company, customers, category, competition, and perhaps most importantly, the channels your brand operates within. Take time to update the foundation and strategy of your brand and evaluate the mechanisms through which you can undertake the shift of your business to a more online-centric model.

I can’t help but reflect upon the genius of Kellogg's marketing organization in 1929 during the height of the Great Depression. In the late 1920s, two companies—Kellogg and Post—dominated the packaged cereal market. Still a relatively new market: ready-to-eat cereal had been an established breakfast product for decades, however, Americans didn‘t see packaged cereal as a real alternative to oatmeal or cream-of-wheat until the twenties. Then the Depression hit, the uncertainty of consumer demand shook everyone. Post did what most companies are doing today, the predictable approach of reining in expenses, and cut advertising in the hopes to preserve cash flow and ensure the company survived. Kellogg, on the other hand, doubled its ad budget, moved aggressively into radio advertising, and heavily pushed its new cereal, Rice Krispies. The result? By 1933, even as the economy cratered, Kellogg profits had risen almost thirty percent and become what it remains today: the no 1 Cereal brand and a dominant consumer goods player. 

This is not to say that you should gamble away corporate liquidity on poor advertising efforts, but my advice is to not cut the marketing budget; what you took years to build, brand affinity and position, takes only a fraction of time to be forgotten. Today, we are bombarded with impressions and oversaturated with brand messaging on all available platforms, it is important to stay in the game and atop the consumer's mind. One additional word of warning, avoid using this crisis as a means to gain instant attention for your brand. We are constantly reminded and aware of the effects of the virus;  as consumers, we hold a natural aversion to additional reminders of its destructive effect --  It is easy to experience the feeling that brands are trying to exploit the facts of this pandemic. Instead, bring a message of positivity, or do something that stands out in a way that takes consumers’ mind off of things. Even better, provide a solution that makes their lives better in some way. 

Marketing and Innovation are the most important parts of any business - so they are the facets of your business that you must focus on improving - not reducing. If you are tempted towards spontaneous stunts in the hopes of gaining a quick win, my advice? Don’t - think things through based on your brand values and purpose, and make sure you do them for the right reasons. 

We will survive this, so now it is up to you to figure out the status quo for your company...the new normal. Will your decisions take 2-3 steps backward, or will they put you ahead of the competition?

If not now, then when will it be a better time to maximize your marketing efforts and budget, to make sure you come out the other side stronger, both as a brand, but also as a leader and a human being. We cannot allow ourselves to let the wheels of business come to a halt, but we have a responsibility to push through. In doing so, we all can grow and perform better tomorrow.