Advertising on TV, or any other platform for that matter, can be stressful for businesses, but with transient economic situations, the power is firmly in your business’ hands to thrive despite the potential interest rate changes
BUSINESSES Across the UK learned that interest rates were going to be raised by the Bank of England once more, but how should this impact advertising?
The rate rise will transiently boost currency, which can ensure of slightly lower import fees, but in the world of advertising, no decision by the Bank of England should stop you from continuing to grow your business through TV, online, radio or beyond.
With the incentive in place for consumers to save, spending habits may change slightly, but the context of your response messaging needs to placate consumer thought habits.
As opposed to focusing on products based around transient spending, your focus can shift to more aspirational products; holidays; savings schemes or debit-based purchases.
In short; you should not have to stop advertising — that could be disastrous in terms of brand awareness — but change the proposition and how you target new and existing consumers.
Previously, your products or services may not have carried as much relevance, but seemingly innocuous changes to fiscal policy by the Bank of England can and will dramatically affect short to medium-term business success.
With improved currency, or even the scope for a cheaper break, consumers will be more receptive to price-led promotions, which is why it is crucial you do not lose sight of brand.
Adverts that focus on price only endure reduced ROI and overall efficiency; consumers need businesses to compete for their custom emotionally, as well as practically.
Conversely, should a transient financial change harm certain consumer groups; focusing on ways to conciliate them in future with TV sponsorship and brand response will still ensure your overall long-term success increases.
Consumers miss their favourite brands who don’t produce TV commercials. Thinkbox research has proven that consumers need a brand presence, even if they may not be inclined to purchase a product or service at that given moment.
If an individual becomes invested in your brand through similarities or emotions, your business will increase chances of brand advocacy and sales when transient periods pass.
Therefore, rather than tightening the pursestrings, businesses need to shift targeting metrics and propositions to boost sales, which is still imperative for wider economic performance.
Lowering prices and increasing wages is one option, but to ensure of buoyant profits omni-industry, every industry needs more sophisticated data streams to proactively target and profile appropriate consumers amid this latest financial shift.
In order to not alienate any consumers, businesses will need to ensure that segmentation and addressable, interactive and augmented advertising is prevalent to improve the quality of data streams.
Targeting people who maybe shifting towards a more savings centric mindset, too, can still be lucrative for certain businesses – with the need for both brand and direct response post-interest rate announcement.
From a brand perspective, it is key to instil as many empathetical elements to your ad as possible, which also foster conversation – some of the most successful UK campaigns in recent years involve high levels of conversation, empathy and creativity.
While online advertising will be useful in harvesting consumers and gathering increased understanding, your demand generator, TV, needs to provoke conversation and stimulate interest in your inbound marketing activities.
By leading the conversation, rather than reacting to it through this means of advertising production, your business will be a thought leader in its own right – TV is the most credible and trustworthy means of marketing your business.
Where response is concerned, steps need to be taken to have multiple versions that can measure receptiveness to differing creative style – a more lucrative and efficient variant of A/B testing in emailing marketing campaigns for instance.
With addressable advertising you can source consumers who meet your newly defined consumer profiles, and help your business achieve its KPIs.
Taking the data needed to appeal to mass audiences, you will improve linear campaigning, thus supporting your search engine optimisation through the interest TV advertising production generates.
The Bank of England is seeking to stimulate a more buoyant economy that helps businesses omni-sector, therefore whatever sector your business falls in, it has the potential to reach new audiences thanks to the inevitable shift in consumer thinking.
Use this time to showcase new products to consumers; offer incentives for buying with and without credit – helping your business in either instance as you stimulate sales.
Whichever tack you take, though, TV, online, radio or print advertising needs to be unequivocal with consumers – any doubt leads to mistrust and confusion.
Space City is the UK’s most cost-effective TV advertising production company, delivering successful commercials for businesses for over 25 years.
Contact the team now and prepare your next DRTV or branded commercial to obtain new consumers for a new financial period.
