We’re living in uncertain times. While some expect a recovery from the pandemic effects in 2-3 months others predict a recession that will last 12-18 months. 

Businesses will be inclined to cut back on expenses in preparations for the unpredictable. One of the first expenses to go is advertising budgets. A recent survey on How Advertisers Are Responding to the Coronavirus Crisis revealed a quarter of respondents have already paused all the advertising they could. 

However, studies throughout history have proven advertising during a recession is actually very beneficial. 

The American Business Press analyzed 143 companies during the economic downturn back in 1974 and 1975. Companies that advertised in those years saw the highest growth in sales and net income during the recession and the two years that followed.

In the 1980s, a McGraw-Hill Research analyzed 600 companies and found that those who maintained or increased advertising grew significantly … both during the recession and the following three years. In fact, by 1985, sales of companies that advertised aggressively had grown 275% over those that didn’t

The current pandemic crisis has impacted every aspect of daily life. Mass quarantines have enforced population lockdowns. Everywhere around the world, people remain inside the safety of their homes. With more time available, consumers are filling the gap by spending more time online. For an advertiser, this basically translates to a wider more thirsty audience. 

These two factors, fewer competitors advertising, and a more captive audience present large opportunities for advertisers during hard economic times

 Ad inventory still has to be sold and as advertising budgets are being pulled back, digital advertising prices are cheaper. Cost-per-impression on Facebook ads has dropped substantially, and as users spend more time on social media, marketers get more eyes for less.

This is the perfect opportunity to advertise online. Less advertising from competitors means you will be heard. Consumers’ shopping behavior is influenced by what they see and hear. You want to keep advertising to remain present and top of mind when your audience is ready to buy. 

Instead of stoping ad spend, perhaps consider shifting focus from promoting premium products to everyday items, at-home items, and delivery-based options. A McKinsey study found users increased spending in the following categories:

  • Consumer electronics and home entertainment
  • Sleep and loungewear buying 
  • Beauty and personal care purchases 
  • Home health and fitness
  • Consumer savings and investments
  • Fresh and organic food, and food delivery
  • Preventative healthcare, home healthcare, vitamins and minerals
  • Education and online education
  • Children’s toys 
  • Online gaming, streaming, media 

CommerceIQ analyzed how the pandemic affected Amazon sales and which products were in high demand:

Consumers still have needs to be met. They will still be carrying out actions but from the refuge of their homes. This is the time for you to innovate and reap the rewards. If you take the chance to understand your audience and tailor your advertising to their needs you can come out stronger

You should never stop marketing, especially in times of need. Use this time to connect with your consumers.

This is also a perfect opportunity to reassess your ad tech partners for the best campaign performance. 

When you’re ready to get the highest Return on Ad Spend,™ sign up with tribeOS. Advertisers only pay for genuine clicks and impressions from their ideal audience thanks to powerful contextual matching algorithms.

Make more money. Protect your ad spend. Advertise with tribeOS.

Matt Gallant

About Matt Gallant

I'm a seasoned, serial entrepreneur who’s built 13 profitable companies. My 20 years of advertising experience has prepared me perfectly for tribeOS. Over 8 million leads captured, over 13,000 marketing experiments performed, over $10 million spent on digital advertising, and over $40 million generated in online sales. My single-minded purpose is to create the most profitable advertising marketplace ever for advertisers and publishers.

Ready for a better advertising experience?

1. Fill in our zero risk, no commitment Letter of Intent for 6 months of savings
2. Our Customer Happiness Team will reach out to help prep your campaign
3. Enjoy high Return on Ad Spend™ as we match you with your ideal audience

5% discount on every dollar you spend
for the first 6 months

Sign up now