Advertising During a Recession

Author: Ashley Grace, President, Business Development & Innovation, ARSgroup

Regardless of the economic times, responsible advertisers should work to get the most out of their advertising investments by applying proven methods to increase the ROI of their ad expenditures. During difficult economic times, it is even more critical for advertisers to avoid the trap of making decisions that have proven to have adverse impact on sales; such as not refreshing creative, wasting money by flighting versus continuous spending, and running away from the reach benefits of TV. To view full white paper, contact Shannon Chenoweth at srchenoweth@ars-group.com.

4 steps to understanding how to make what you have work to maximum capacity

1. Aggressively utilize 15-second ads - but make sure they are "good" ones:

• 15-second ads are just over half the price of 30-second ads, but on average three-quarters the strength (so, you might want to use multiple 15-second ads to maintain on-air strength).
• Over 25% of the time, 15-second ads are as strong or stronger than their 30-second counterpart (when you know you have this opportunity, you win).
• Use "cut-down" versions from 30-second ads to reduce production costs in multiple execution plans while simultaneously boosting GRPs - but when cutting down the ads, clearly understand the drivers of success and don't cut them.
• Use original 15-second ads to replace 30-second ads in single execution plans (build your 15-second ads "from scratch" with the end in mind that they will be 15-second ads).
  15-second ads are best used when there are clear-cut benefits/messages and when the goal is to maintain brand awareness and loyalty.

2. Understand the persuasive life of an ad and manage the wear-out of your advertising:

• As money is spent behind an ad, its selling power decreases in a predictable fashion - leading to diminishing sales returns. If you know the starting strength of the ads in your campaign, you can plan to maximize delivery of selling power and ad refreshment without wasting money.
• A very slight difference can result in a "new" ad; therefore, ad poolouts are a very cost effective way to replace ads without producing totally new ads.
• In contrast, ads are frequently replaced prematurely, when there is plenty of power remaining. If you know the starting strength of your ads, you can avoid wasting money on replacing ads too soon.
• Know your end point business objectives. If you know the strength of your ads, you can marry spending patterns to project likelihood of hitting your goals via simulation technology.

3. Take advantage of emerging touchpoints and synergies

• While TV is often the strongest single-reach element of a multi-media plan, other touchpoints can be just as effective at motivating consumers and are often less expensive (e.g., print and web).
• Take advantage of synergies between executions by placing media spend behind those combinations yielding the greatest total impact.
• Avoid negative interactions (often the result of unexpected executional issues).
• Both single and multiple message campaigns can be effective:
  ' Single message when a straightforward brand-differentiating message which appeals to a broad consumer segment has been identified.
  ' Multiple messages when brand differentiation cannot be communicated with a single straightforward message.

4. Flighting vs. continuous airing? Don't go black!

• In an attempt to optimize media spending, advertisers sometimes spend advertising in waves figuring that periodic spending in bursts is the key to driving sales. This is not the case.
• If reducing media spend, avoid flighting, continuous spending even at lower levels is more effective.