MARKET Your business now and you will increase your chances of eliciting instant sales ahead of potential interest rate rises.
Although rates were kept at a continued low of 0.25 percent yesterday (March 17), with the Theresa May expected to trigger Article 50 before the end of the month, renewed certainty should lead to more long-term financial strategy being imposed.
Low rates have meant that consumers have been less inclined to save and maximised the capacity to spend during the last two quarters.
This period has also heralded further increases in overall adverting spending, with TV increasing for the seventh year in a row.
Although spending growth was only 0.17% according to figures published by WARC, 2017 is set to deliver increases in ad spend of 1.6 per cent amid increased clarity regarding the UK’s Brexit strategy.
Greater certainty will be accompanied by more brand centric content that can create lasting resonation for whatever the economic eventuality may be.
Allied to this period of transition, regardless of the speed at which renewed trade deals are struck and statutes are revised, will be a slide in consumer spending and wage increases.
This will inevitably lead to increases in inflation, therefore to ensure the future economic stability of your consumers and your own business, it has being increasingly mooted that interest rate rises would help mitigate any increases of inflation.
Speaking to the BBC, Kristin Forbes of the Monetary Policy Committee was confident an increase in interest rates would not stymie the economy, instead protect jobs and long-term consumer spending, she said: “Monetary policy should not go on hold.
“This softening… should only be moderate, due to support from resilient consumer confidence, solid house prices, low unemployment and easy access to cheap credit.”
Although cheap credit has fuelled temporal increases in consumer spending, the slow down has already begun, prefixing a shift towards prolonged economic stagnation and higher inflation.
For businesses and planning your advertising direction; online, TV or preferably both, the ability to produce direct advertising will begin to be thwarted by more permanent economic effects.
Thus your company is presented with two choices regarding how you market yourselves: focusing on direct response advertising to maximise tendency to spend rather than save, or produce brand response campaigns that will provide greater awareness and resonation.
Although both are equally effective as forms of producing instant and long-term sales increases respectively, DRTV will be intrinsically vital to such a paradigm that will be finite.
If you market your company using such means you guarantee the most cost-effective advertising campaign, with the most sales elicited per-pound-spent- 15 per cent more efficient than online.
Such campaigns lack the long term cognitive resonation though, with brand based campaigns remaining in the long-term memory seven times more often than a DRTV ad.
Of course if this is your prerogative, whether it be interest rate dependant or a modular approach by your business, it can succeed, but efficiency is sure to slow during the second half of 2017 as policy becomes more immutable.
Therefore if your business is more modular or driven on consumer impulse, ensuring your creative is contextually pliable is imperative.
To maximise your efficiency, ROI and KPI achievement in the short and long-term, DRTV will need to be tailored towards far more granular audiences.
Utilising techniques such as addressable, interactive or programmatic advertising will ensure not only your ad’s success, but ensure you maximise your budget and improve attribution.
TV has perennially been a dependable and successful means of advertising, however the rise in digital has only made advertising across both entities more accountable and trustworthy.
Dovetailing the trust generated through TV to the increasing measurability and accessibility means campaigns can be delivered quickly and cost-effectively.
TV campaigns that are delivered through interactive means have witnessed consumption by 75 per cent new business entity.
Therefore to ensure you maximise short-term spending inclination, DRTV is the strategy you can utilise now to create the perfect platform for sales and KPI achievement.
Whether it be growing followers, increasing subscriptions, or simply sales, using the stimulating mechanisms of TV and in particular direct response will underscore your 2017 success as fiscal behaviour shifts.
Space City has been producing TV, online and radio adverts for 25 years, providing ROI of 600 per cent in some cases.
Contact the team now and ensure you maximise the state-of-the-art, in-house facilities that continue to lower the cost of advertising.