Economic and market turmoil has caused businesses to retract advertising dollars across the board; however, crisis management veteran, Karla Jo Helms, says this is the opposite of what brands should be doing as evidence by numerous studies throughout history.
TAMPA BAY, Fla., Dec. 6, 2022 /PRNewswire-PRWeb/ -- A perfect storm of skilled labor shortages, The Great Resignation, recession fears, and the new "quiet quitting" trend has created an uncertain and tumultuous environment for businesses. In an effort to reduce costs and "shelter in place" during an uncertain time, advertising spend has decreased. However, advertising contributes trillions to the U.S. economy's GDP, and research shows that the companies that doubled down on advertising during recessionary times saw 256% higher sales afterward than their competitors who retracted ad dollars.(1) Crisis management veteran, Karla Jo Helms of JOTO PR Disruptors an 'Anti-PR' agency that puts innovative startups on the map, shares how companies can lean in during a recession to lower customer acquisition costs.
"47 million workers in The Great Resignation quitting their jobs in the span of a year shifted the face of the American economy," said Helms. "Combined with the newer phenomenon of 'quiet quitting' and a notorious skills gap issue, businesses are under more pressure than ever to make do with less."
The Great Resignation saw an astounding 47 million American workers switch jobs. After finding a new role, workers reported higher pay, more job satisfaction, more opportunities for growth, better work-life balance, and an overall improved environment.(2) However, this forced many businesses into a bind of trying to win new skilled labor while also replacing employees. Add in employee demand for higher salaries thanks to inflation with 92% of businesses increasing pay in 2022, and businesses are even more tightly constrained with their budgets.(3)
Not only are Americans openly quitting jobs, but they're also quietly cutting back on their responsibilities and productivity at work with a new phenomenon called "quiet quitting." This results in decreased productivity and growth for the business overall and might hurt companies more than an employee openly resigning.
Additionally, with the Federal Reserve calling for continued increases in interest rates, inflation promises to continue - at least for several months - and recession concerns becoming more realistic, businesses are looking into cutting costs. One of the first line items to be reduced is advertising.
However, Helms explains that the Law of Familiarity comes into play when understanding why advertising during uncertain times leads to a favorable outcome. Familiarity makes consumers 71% more likely to purchase a product, so the cost of losing ground when it comes to brand awareness and affinity is high.(4) In the 2008 crisis, brands went "dark" to save money but suffered the consequences with a 28% decrease in brand image.(5)
Helms explains it's critical to spend smart during a recession. The need for thought leadership, in particular, is at an all-time high; in the B2B space, third-party validation is incredibly important as it reduces the perceived risk of working with a partner and establishing yourself as a credible, authoritative leader who others look to for advice.
To help recession-proof B2B startups, JoTo PR has developed 'Familiarity In a Box,' a multichannel disruptive Anti-PR package for those challenging the status quo. "Familiarity is the most underappreciated asset, and we're extremely excited to help courageous, forward-thinking brands lean in now and reap the benefits for years."
To learn more, visit https://info.jotopr.com/the-law-of-familiarity
About JOTO PR Disruptors(TM):
After doing marketing research on a cross-section majority of 5,000 CEOs of fast-growth trajectory companies and finding out exactly how they used PR, how they measure it, and how they wanted the PR industry to be different, PR veteran and innovator Karla Jo Helms created JoTo PR(TM) and established its entire business model on those research findings. Astute in recognizing industry changes since its launch in 2009, JoTo PR's team utilizes newly established patterns to create timely Anti-PR(TM) campaigns comprising both traditional and the latest proven media methods. This unique skill enables them to continue to increase the market share and improve return on investment (ROI) for their clients, year after year—beating usual industry standards. Based in Tampa Bay, Florida, JoTo PR is an established international public relations agency. Today, all processes of JoTo are streamlined Anti-PR services that have become the hallmark of the JoTo PR name. For more information, visit JoTo PR online at http://www.jotopr.com
References:
1. Marketing, MiQ. "Advertising during a Recession." MiQ, 2 Nov. 2022, wearemiq.com/blog/advertising-during-a-recession/).
2. Parker, Kim, and Juliana Menasce Horowitz. "Majority of Workers Who Quit a Job in 2021 Cite Low Pay, No Opportunities for Advancement, Feeling Disrespected." Pew Research Center, Pew Research Center, 10 Mar. 2022, pewresearch.org/fact-tank/2022/03/09/majority-of-workers-who-quit-a-job-in-2021-cite-low-pay-no-opportunities-for-advancement-feeling-disrespected/.
3. Rosenberg, Eli. "Workers Are Pointing to High Inflation as They Demand Larger Raises." The Washington Post, WP Company, 3 Mar. 2022, washingtonpost.com/business/2022/03/03/workers-raises-inflation-salaries/.
4. Are You Using the Familiarity Principle in Your Marketing?https://www.brandlective.com/2019/11/24/familiarity-principle/.
5. "The History of Advertising in a Recession." Nova, createwithnova.com/blog/the-history-of-advertising-in-a-recession.
Media Contact
Karla Jo Helms, JOTO PR™, 727-777-4619, [email protected]
SOURCE JOTO PR™
Share this article