CRISIS MARKETING, PART III The Grand Reopening · Marketing Informed customers of new precautions...

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CRISIS MARKETING, PART III

The Grand ReopeningApril 27, 2020

STAND BY

The webinar will begin shortly


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This deck is from an April 27 webinar. Slides are copyrighted but may be used with appropriate attribution and sourcing. We are continuously updating information; to receive notices when we do, sign up for our Research Alerts on borrellassociates.com.

Would you like us to conduct this webinar for your sales staff or engage us to conduct a customized webinar for your advertisers? Contact Jim Brown at [email protected]

About This Presentation


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Advice forLocal

MarketersGORDON BORRELLCEOBorrell Associates Inc.


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What We’ll Cover Today

➢ ‘Perfect Storm’ Setup

➢ How Advertisers’ Mood Has Changed

➢ Three Phases of Recovery

➢ Post-COVID Marketing Messages

➢ Marketing Plan They’ll Need for Reopening

@borrellassoc

Everyone needs help! Please Share What You Hear Today

AGENDA

Group:


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• Social Media is most-used platform (89%)

• 3 in 5 unsure they’re spending ‘right’ amount

• Taken on marketing tasks internally

• They’re marketing novices

Source: Borrell’s 2019 surveys

PRE-EXISTING CONCERNS ABOUT ADVERTISINGSetup For

The Perfect Storm


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Asked of Local Marketers

How would you characterize the current economic situation in the U.S. for sustaining a small business?

Source: Borrell’s SMB Business Panel, March 15-29, 2020

Setup ForThe Perfect

Storm


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* Sources: Nielsen, 60% growth in consumer media usage during crises; Borrell, 52% of businesses surveyed plan not cut advertising due to crisis, March 15-29, 2020

‘Crisis’ Marketing Advantage is Ending Fast


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How The Mood Has Changed COREY ELLIOTT

EVP of Local Market IntelligenceBorrell Associates Inc.


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Negative Impact Has Deepened

“Which best describes how much your business is being impacted by the novel coronavirus pandemic?”

52%

34%

11% 2% 2%

62%

21%

12% 3% 3%

Large negativeimpact (more than

30% down)

Somewhatnegatively

impacted (10-30%down)

Not impacted verymuch (within 10%

up or down)

Somewhatpositively

impacted (10-30%up)

Large positiveimpact (more than

30% up)

March April

Source: Borrell’s SMB Business Panel, March 15-20, April 14-21 2020

83%seeing negative

impact


0%

5%

10%

15%

20%

25%

30%

1-2months

3-4months

5-6months

6-8months

9-12months

12-18months

More than18 months

Might notmake it

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* Source: IHMA, University of Washington, late April 2020

Time Is Added to Length of Impact

How long do you anticipate the impact to your business will last?

60% now feel that the impact will be felt for 3 to

6 months


1110%

12%

17%

21%

25%

30%

31%

33%

46%

51%

60%

We have not made any changes to advertising

Other

Cut back outdoor advertising

Stopped all advertising

Cut back digital forms of advertising

Increased brand awareness messaging

Cut back print advertising

Replaced hard sales message to a more empathetic message

Offered new or different options to customers

Adjusted creative messaging

Informed customers of new precautions being takenMarketing Messages

Have Changed

Which of the following has your business done related to marketing messages as a result of the COVID-19 pandemic?

Source: Borrell’s SMB Business Panel, April 14-21 2020


4%

52%

16%

28%

6%

40%

18%

36%

Don't Know Less More About the Same

March Survey April Survey

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They May Be in Early Planning

10-Point JumpIn those planning to maintain or increase

spending

Source: Borrell’s Business Panel, mid-March 2020 and mid-April 2020

Over the next six months, my business will spend more/less/the same on advertising


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* Source: NYTimes, https://www.nytimes.com/interactive/2020/us/states-reopen-map-coronavirus.html?action=click&module=RelatedLinks&pgtype=Article

Reopening Rollout Will Vary by State

Examples of Differences

https://www.nytimes.com/interactive/2020/us/states-reopen-map-coronavirus.html?action=click&module=RelatedLinks&pgtype=Article


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Rollouts Will Be Category Specific(This one’s for Golf Courses)


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* Sources: Nielsen, 60% growth in consumer media usage during crises; Borrell, 52% of businesses surveyed plan not cut advertising due to crisis, March 15-29, 2020

Return to ‘Normal’ Marketing in 3 Phases

PHASE II PHASE IIIPHASE I


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Local Marketers

AdjustJIM BROWNPresidentBorrell Associates Inc.


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What Consumers Want Ads

To Say

4%

8%

8%

10%

13%

16%

24%

44%

Community efforts

Offering deals

Focusing on safety (e.g., Stay Home)

Empathizing

Explaining actions to protect employees

Compliance (clean, social distancing, etc.)

Indicating what you're doing to help

Service Adjustments & updates

Source: Morning Consult, “Brand Management in the COVID-19 Era,” March 28-29, 2020; N=2,200 U.S. adults

Preferred Content in Advertising

We’re Open!

We’re Compliant!

We’ve Got a Deal!


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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Source: Borrell Associates, April 2020

Post-COVID Marketing How Marketing Messages Will Shift

LATE SPRING MIDSUMMER AUTUMN

MESSAGE

We’re COVID-19 Compliant!

MESSAGE

Have We Got A Deal for You!

MESSAGE

We’re Open

for Business!

4 to 5 months


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The Great RecessionSpawnedGroupon

$15 $313

$1,610

$2,334

$0

$500

$1,000

$1,500

$2,000

$2,500

2009 2010 2011 2012

Gross Revenue$ millions


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Post-COVIDMarketing

Needs

Source: Borrell Associates Inc., April 2020

How a local business might allocate fundsin 3-4 months of post-COVID marketing


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Yes, I plan to or probably will apply.

60%

Yes, I plan to or probably will apply.

13%

No, I have no plans to apply.

27%

Do you plan to apply for a business loan or

government assistance in the next few months?

Yes, I definitely will

5%

I might

13%

I probably won't

38%

No, I definitely won't

44%

Should you receive a loan or assistance, do you

expect to use at least a portion of that loan or

assistance to purchase advertising?

Will PPP Funds Be Used for Advertising?



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Media‘Stimulus’Programs

• Sun Coast Media (newspapers) – matching grant

• Cox Media (cable) – free TV spots for restaurants

• Facebook -- $100mm grants/ad credits to SMBs

• Google -- $340mm ad credits to SMBs

• Hendersonville (NC) Magazine – free ads

• Lee Enterprises (newspapers) – matching grant

EXAMPLES


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StimulusPrograms

• $500mm matching fund

• 77 markets

• Print and online advertising

• $250 to $15,000/month each

• Target revenue: $500mm


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StimulusPrograms

• Print newspaper ads only

• Only for new and smaller customers (<$12k/yr.)

• Spending match (minimum $500/mo., max $1,000)

• Target revenue: $2.5 million

• Free online business directory ads for 3 mos.


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They’ve Been Listeningto Peers

12%

13%

15%

24%

25%

25%

45%

46%

Other

Government source (like SBA.gov)

Ad agency

Local Media company

No one

Social media

Trade/industry organization

Colleagues


“From whom, if anyone, have you gotten marketing advice since the pandemic started?”


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What They’ll Need for the Reopening

• Sensitive, clear, action-oriented• Embodies unique selling proposition/safety msg• Creates new habits• Easy to share

What’s the Message?

What’s the Medium?

• Mass offering (broadcast, print, cable, outdoor)• Targeted offering (digital display/geofencing)• Professional video message from owner• Property signage• Website landing pages• Search/listings claiming• Email


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What They’ll Need for the Reopening

What’s the Mechanism/Idea?

Pricing and Terms

• Tiered pricing (Phase 1, 2, 3, that builds)• Stimulus package• Deferred payments• Liberal credit/cancellation policies

• Sidewalk Sale Saturday• Easy to share/social media chain• Facemask offer• Media company coupon/discount for future ads• Lead-gen/appointment-setting software


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CRISIS MARKETING, PART III The Grand Reopening · Marketing Informed customers of new precautions...

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