Marketers Double Down
Marketers Double Down. While some marketers are planning to cut spending during the economic downturn, many are adjusting their spending between brand and performance marketing. More marketers are recognizing the importance of doubling down on brand spending during a downturn, and there is a growing recognition that the lines between brand and performance are getting blurry, with convergence between the two on digital commerce platforms. Investing in brand advertising during a downturn can help protect against price elasticity and enhance connections with customers.
This trend originates from the report:
WARC - The Marketer’s Toolkit 2025
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..