It is very tempting for businesses these days to reduce their advertising costs given the immense impact of Covid-19 on the global and national economies. For sure, this may help balance a brand’s profit and loss in the near term. However, it is still important to think about how such a move can negatively impact a brand in the long run. Let’s discuss the reasons why it can be beneficial to continue TV advertising during Covid-19.
During these very tough times, many businesses are searching for ways to decrease their costs. Among the easiest and most convenient for them to touch is their budgets for TV advertising and other media. Come to think of it, they can be stopped right away and then be reactivated at a much later time. But before marketers resort to such drastic measures, it is important for them to ask first what will happen if they suddenly stop paying their TV advertising rates?
Seemingly No Impact at First
Initially, stopping your ads may seem harmless and have no negative impact at all. It is because sales are still being delivered by your previous advertising presence. But as time goes by, the impact of stopping your ads will increase and increase further. This will negatively affect your sales.
Maintain TV Ad Spending to Ensure Long-term Growth
To cut fat and to cut muscle is different especially when we talk about sustaining the performance of a business in the long term. Cutting the wrong parts of your expenditures can put your brand in the dark for so long. This is bad for business because the process of re-starting your TV ad spending can be expensive. It could be worse if some of your clever competitors never stopped their advertising and have now gained significant advances in terms of building a significant market share.
After finding a dependable media service with the best TV advertising rates, businesses should maintain their ad spending in order to prevent such unfortunate circumstances. Once you lose ground to major competitors, it takes lots of time to regain and you may spend a lot more to re-\start your ad spending. By doing so, businesses could build on their momentum for a more sustainable growth in the future.
It is never a good thing to stop your TV advertising as it would result in lost momentum. It is best to continue your ad spending so as not to lose the capacity to demand a premium price. Studies found that when a brand goes dark for over 6 months, its level of bonding with consumers will eventually suffer. When the recovery period arrives, a brand with poor bonding level with customers will find it very hard to demand a premium price.