nj ad club preso 2009 adv in econ downturn
DESCRIPTION
Presentation for the NJ Ad Club regarding advertising during economic downturn. How to leverage media, message and maximize budget. More importantly, what the future holds for marketers.TRANSCRIPT
Please Note: This presentation for the NJ Ad Club was originally given in a room without a projector or screen. The presentation was done “the old fashioned way” – hand written on a large white paper pad.
New Jersey Ad Club
Advertising in Times of Economic Downturn
Gregory Padley
Staying The Course
GE founded in panic of 1873 DISNEY founded during recession 23- 24 HP founded = GREAT DEPRESSION MICROSOFT founded 1975 iPOD launched during 2001 recession
Staying The Course
McKinsey Study Those who increased mktg spend were ONLY
ones whose profit rose McGraw Hill Research
Reviewed 600 companies 1980 – 85 Sales rose 256% for those who continued adv
1930’s Depression Kellogg’s maintained while Post decreased Kelloggs dominated cereal for next 50 yrs
Is There a CEO or CFO in the Room?
Someone who would make the final decision to “stay the course”?
No. So how do we maximize what budget we do have and forge
ahead?
Media
Fish where the fish are Minimize waste Market only to those most likely to buy
Leverage your spend Value added from media partners Partnerships
Events / Contests / Promotions Sponsored content Introductions to prospects and other advertisers
you can partner with
Message
Craft your message using the two V’s
V # 1 is VALUE
Play up the ‘practical side’ Value proposition – prove it
Message
Craft your message using the two V’s
V # 2 is VALUES
Core Values Core Values of the Brand Core Values of Life
People are more sensitive during tough economic times
Leverage feelings of family, friends, security
Case Study – De Beers
De Beers Shadows Campaign
Situation: Selling diamonds during the recession of the
early 1990’s Luxury item sales in decline
Case Study – De Beers
Stepped program lead prospects along path to purchase Sentimental message for women Diamond education for men
Increased sales 8% annual avg over 3 yrs At recession end profits recovered by 21%
Case Study - Grenada
Grenada Tourism Q4 2008
Situation: Recession news abounds Caribbean travel across region DOWN Grenada begins new American Airlines flight
from NYC
Case Study - Grenada
Focused message where consumer most likely to purchase On Line Travel Agents
Expedia, Orbitz, Travelocity, TripAdvisor Targeting New York area travelers Consumers searching for similar destinations
Orbitz Oct. room nights UP 15% YOY Expedia Q4 room nights UP 25% Travelocity Dec. room nights UP 19%
3 Strategies
New creative, targeting or media opportunities
Strengthen market position against rivals Keep going
Will This Work in the Future?
# Years to 50 Million Users Radio 38 years TV 13 years Internet 4 years iPod 3 years Facebook 100 Million users in 9 months iPod app downloads 1 BILLION in 9 mos
State of Consumers & Tech
Forrester Research 2009 consumer UNRECOGNIZEABLE from
1999 consumer Consumers – all ages – moving to online Americans spend 8 hrs ‘offline’ AND 8 hrs
‘online’ a week 25% of US households have a DVR
State of Consumers & Tech
Forrester Research 88% of people under 40 are regular Internet
users Half of Americans research a product online
before they purchase Half of US adults play computer games Digital will not abate, it will intensity
Marketers Say….
Digital is no longer experimental DM, TV, Print, Outdoor, Newspapers have
lost effectiveness 50% of marketers agreed
Social Media, Online Video, Mobile effectiveness increase +70% of marketers agreed
Digital Spending
Overall Digital 12% of overall spend in 2009 21% of overall spend projected for 2012
Online Video Ads $870 million in 2009 $3 billion in 2014 projected
Social Media $716 million in 2009 $3 billion in 2012 projected (not incl. display)
Where are your customers?
Where are your competitors?
Innovate or Die
3 Strategies ~ Revisited
1.New creative, targeting or media opportunities Reach out and partner with media If you are not already there, start online
2. Strengthen market position against rivals Reach out, partner, leverage relationships
3. Keep going Buying cycles have increased Nurture leads – Social Media & Traditional
Recession 101:
No One Can Repossess Your Future
Thank You!
Gregory Padley
My Blog: www.5691gerg.com
LinkedIn: www.linkedin.com/in/gregpadley
Twitter: www.twitter.com/5691gerg
Delicious: http://delicious.com/5691gerg
(most of the source material for this presentation is book marked in Delicious)