Marketing in a cost-of-living-crisis
Marketing in a cost-of-living-crisis. The global economy is experiencing a cost-of-living crisis with inflation and a likely recession creating two-pronged economic anxiety. The Consumer Confidence Index is down globally, most consumers expecting their personal economic situation to decline in the near term. Marketers should maintain spending on brand advertising and keep building share of voice to remain relevant, as consumers in an inflationary context may otherwise seek out less expensive brands.
This trend originates from the report:
WARC - The Marketer’s Toolkit 2023
Ongoing pandemic-related supply chain difficulties, and the war in Ukraine, have combined to bring on an era of stagflation, where probable recession has combined with inflation. Even as consumers spend less, certain factors causing prices to rise are proving implacable. According to data from the OECD, the Consumer Confidence Index is down throughout the US, the UK, Europe and China, with major regional variations.
A survey from Rival Spark found that most consumers in the UK (51%) expect their personal economic situation to decline in the near term; in the US, almost half (46%) expect the opposite. The combination of inflation and a probable recession makes this an atypical downturn. This also means the long-standing advice to marketers to maintain spending on brand advertising, and keep building share of voice, is even more important; Consumers in an inflationary environment may be even more likely to seek out less expensive brands.