Marketers Double Down

The results of WARC's Marketers Toolkit survey show that some marketers are planning to cut marketing spend, despite evidence suggesting they should maintain spending levels. However, there is also an interesting trend where many marketers are adjusting their spending between brand and performance marketing. More marketers are finally taking the advice to double down on brand spending during a downturn, recognizing that the lines between brand and performance are getting blurry.

In fact, 62% of respondents said they see convergence between the two on digital commerce platforms. During downturns, marketers who continue to invest in brand advertising and are prudent about price promotions often weather increases in pricing better because they’ve built brand equity. They also come out stronger because they focus on gaining excess share of voice (ESOV) and enhance connections with customers by focusing on the tone of their messaging.

Focusing on brand protects against price elasticity, and econometrics can be used to assess the impact marketing investment has on price. In summary, during inflationary times, consumers will always prefer brands that have strong equity. Marketers should lean in, not just to market, but to also help consumers.

Pricing can no longer be the ‘forgotten P’ since price increases are a central concern for consumers. Strong brands, which focus more on brand advertising than price promotions, have less price elasticity and can also weather price increases better..