Brand or Activation? How marketers should be reacting to a recession. 

4th July 2022
Posted in Projects
4th July 2022 Kyle Mercado

Brand or Activation? How marketers should be reacting to a recession. 

Interest rates are through the roof and inflation is rampant. Could a recession really be on the horizon? 

Whether or not this is the case, it is undeniable that in the world of advertising, a recession often means that brand budgets are slashed while more emphasis is given to activation budgets.  

However, in an environment where consumer confidence is at standstill, it might make more sense to focus our attention towards brand campaigns instead.  

According to the Global Head of Development at The B2B Institute, Jon Lombardo, “[marketers] would be better off cutting short-term advertising and continuing to invest in long-term brand building, so when the economy does recover – and most recessions only last 12-18 months – you are going to win more of those customers”. 

The balance between brand and activation has long been a contentious issue within the advertising discourse. With the added pressure of a recession, it is not uncommon to see brands fall into the temptation of tipping the scale in favour of activation.  

Nonetheless, there is no denying the importance of brand campaigns in achieving long-term growth. A study conducted by Binet and Field highlights that the optimum balance between brand and activation is 60/40. 

As such, with the impending doom set to wreak havoc on our economy, there is no better time to remind marketers to keep a healthy balance between brand building and sales activation.  

 

 

 

 

 

 

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