It’s normal for brands to respond to signs of distress by pulling back on their marketing budgets in economic uncertainties, but usually at the sake of long-term competitive presence and Share of Voice in the category. We implore brands to instead consider staying the course, or even increase budgets where economically feasible.
This is not the time to cut advertising. It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times. – Harvard Business Review
While brands cut back or even completely halted their spending in March and April, with traditional media outlets reporting up to 95% of inventory cancellations, at Schifino Lee we optimized our campaigns and saw record-setting ROI. Some of our clients had qualms about ad budgets and spending, but by remaining nimble and assuring our partners that we are diligently reviewing market conditions and making optimizations, we’ve been able to achieve unprecedented profits for our clients.
By pivoting and focusing efforts to capitalize on customer shopping behavior, we achieved a 422% increase in 2Q Sales over 1Q for a consistently active CPG brand. What was already a healthy +300% return on investment, we turned into a +1300% ROI by understanding our customer base and optimizing toward the most efficient digital vehicles. In this particular case, 2Q revenue has already surpassed all of 2019 profits. By shifting spend into top performing venues, we increased Sales by over 500% 1Q-2Q YoY.
The ability to achieve successful campaigns is not limited to digital media. We have been able to negotiate lower rates for clients across other forms of media including Digital TV, OOH, and Print placements into the balance of 2020.
Remember that an economic downturn can be a threat, but it can also be an opportunity! Partner with Schifino Lee to see how we can help you achieve success and meet your KPIs, even in times of uncertainty.
— David Stob, Media Director