With the advancements in the digital world, it has become easier for brands to promote themselves through digital platforms. However, competition among brands remains fierce. For brands to survive in such a competitive environment and create demand for their products and services, advertising plays a crucial role.

But does advertising during crises positively impact a brand’s growth?

The answer is a resounding yes.

Research Supports Advertising During Crises

Studies have shown that brands that continue to invest in advertising during crises grow significantly more than those that cut back on advertising budgets. In fact, the budget allocated for advertising during a crisis often yields far greater long-term value than its initial cost.

Navigating through a crisis requires brands to accelerate their advertising and marketing efforts rather than scaling them back.

Success Stories: Advertising Amid Crises

A prominent example is Renault Scenic, which continued its advertising campaign launched in 1998 throughout the 2001 economic crisis. As a result, the brand increased its market share from 2.1% to 3.8%, turning the economic downturn into an opportunity.

This example highlights how increasing advertising efforts during a crisis can provide significant advantages in terms of sales, customer numbers, and market share.

Risks of Cutting Advertising Budgets

Despite the benefits, many companies reduce their advertising budgets during crises to save costs. However, this often leads to declining sales, rising inventories, and, in cases where competitors maintain their advertising activities, a loss of market share.

Brands should view advertising not as an expense but as an investment, whether during crises or in normal times.

Advertising as a Crisis Management Strategy

A brand’s primary goal should always be to expand its market share and grow. While crises may be unexpected, some can be anticipated. When a crisis is foreseen, it’s essential for brands to define their strategy meticulously.

In such situations, advertising acts as a lifeline for a brand, lifting it upward. During times of uncertainty and pessimism, advertising helps reduce ambiguity and dissipate the gloomy atmosphere. Conscious brands that view advertising as an investment rather than an expense understand that crises often pave the way for opportunities. Consequently, they continue to invest in their brands during such times.

By doing so, these brands also fill the gaps left by competitors who reduce or cease their advertising efforts, securing a competitive edge in the market.