We are not there quite yet, but all signs currently point towards a recession. Advertisers are ‘Paralyzed’ and ‘Somber’ from tariff chaos per a New York Times article published yesterday. Advertisers will very likely cut their ad spend, and notably their voice over ad spend in a recession. This is a mistake.
Brands should generally not reduce ad spend during a recession. Historically, companies that maintain or even increase their marketing efforts during economic downturns, even if the downturn is only in their market sector, tend to recover more quickly and even outperform competitors who cut back. Cutting marketing budgets can lead to a loss of market share and make it harder to regain footing when the economy recovers.
Here’s why maintaining or increasing ad spend during a recession is beneficial:
Increased Brand Awareness and Loyalty: Even during tough economic times, consumers need to know what brands are available and what they offer. Remember the reassuring ads with voice over during the early pandemic times of 2020? Continued voice over ad spend in a recession helps maintain brand awareness and can even foster greater brand loyalty. Voice over, especially bespoke human voice overs professionally cast, directed, and acted are a vital part of brand awareness.
Potential for Lower Advertising Costs: During a recession, the demand for advertising can decrease, potentially leading to lower costs per ad placement.
Differentiating from Competitors: If competitors cut their marketing, your brand can stand out by maintaining or increasing its advertising efforts, potentially capturing a larger market share. If everyone else is cutting back on creative efforts, continuing to use high quality voice overs would be a differentiator.
- Preparing for Post-Recession Growth: By investing in marketing during a recession, especially with voice over ad spend in a recession, you are preparing for the inevitable post-recession growth period, where you can capitalize on your established brand awareness and loyalty. As stated in this Nielsen piece on marketing in a recession from 2022, recessions usually don’t last more than a year. Even the longer Reagan Recession of the early 1980s which was caused by deliberately high interest rates to combat inflation, lasted from July 1981 to November 1982.
- Cost-Effective Solutions: Recessions can also provide opportunities to utilize cost-effective advertising channels and strategies. It’s an opportunity to truly innovate, rather than cheap-out with cost cutting and AI shortcuts.
- Increased ROI: Studies have shown that companies that increase their marketing spend during a recession often experience greater long-term ROI compared to those that cut back. Voice overs, when used strategically, deliver some of the highest level long-term ROI.
Customer Relationships and Bespoke Voice Overs
Messaging: During a recession, messaging should reflect the economic conditions and focus on value and reassurance, rather than hard-sell tactics. When it comes to reassuring customers and potential customers, a good voice over makes that emotional, human connection.
Focus on Core Customers: Prioritize maintaining relationships with current customers through loyalty programs and targeted marketing efforts.
Optimize Spending: While not cutting spend, consider optimizing your marketing strategy to ensure you’re reaching the right audience with the most effective message. Again, bespoke voice overs and voice over localization are keys here.
In conclusion, while it’s understandable to want to cut costs during a recession, or even during a market sector downturn, it’s generally not advisable to reduce ad spend. For more reading, here is an excellent piece on the matter from the Harvard Business Review on advertising spending in a recession. It was published in 2009 during The Great Recession, and it still holds true today! By maintaining or increasing your marketing efforts, notably with voice over ad spend in a recession, you can position your brand for stronger recovery and long-term growth. The use of high-quality bespoke human voice overs deserves to be part of those marketing efforts.