As the world is slowly reopening, we have decided it is time to say goodbye to our weekly newsletters. But not before we put out a last issue, in which we attempt to make a kind of guide that businesses, and marketing professionals could use to be more effective in their marketing communications while navigating the looming recession. Because the aftermath of Covid-19 will probably be a long-term global crisis. And very few people are able to assess, based on the learnings of past recessions, the fundaments of managing a brand successfully through an economic crisis as well as Les Binet, Group Head of Effectiveness at adam&eveDDB and globally acclaimed advertising effectiveness expert. We hope you find his thoughts as useful as we did.

2. In the past weeks we have tried to follow the world during the Covid-19 crisis, and explored the many different aspects of it,
from the toll it took on consumers and businesses to the tendencies that we saw in Covid-related brand comms during and after
the lockdown.
And now, as the world is slowly reopening, we have decided it is time to say goodbye to our weekly newsletters. But not before
we put out a last issue, in which we attempt to make a kind of ‘takeaway’, or guide that businesses, and marketing professionals
could use to be more effective in their marketing communications while navigating a future crisis, or the aftermath of this crisis.
Because there will be an aftermath, and according to Les Binet, Group Head of Effectiveness at adam&eveDDB in London, and
globally acclaimed advertising effectiveness expert, it will likely be the biggest economic crisis since the Second World War.
The next pages are therefore the summary of his considerations and thoughts - based on the learnings of past recessions -
about the fundamentals of managing a brand successfully through an economic crisis
We hope you find it just as useful as we did. Take care, the DDB team
The full publication is accessible through WARC, via the following link:
https://www.warc.com/SubscriberContent/article/warc-exclusive/navigating-covid-19-survival-adaptation-and-recovery/132519
COVID-19 BASE STATION | #9

3. COVID-19 BASE STATION | #9
SURVIVAL01

4. Before anything, we have to acknowledge, that this crisis is different.
The recession created by COVID-19 is not just an economic recession – it’s also a
humanitarian, social and political crisis:
1. We are facing a huge economic contraction
2. Most industries are facing long-term supply problems
3. Thousands of lives are at stake
4. Governments and Industries are cooperating
In fact, it’s more like a war than a recession.
And this means that businesses have to be considerate of the bigger picture,
the survival of not just themselves, but everyone else.
COVID-19 BASE STATION | #9

5. 1. Be prepared to forego profits for the Greater Good on the short term
This is a humanitarian crisis first, and an economic crisis second. Saving lives and preserving our
way of life should come first, business should come second. Because of this the right choice for
firms is to be “purpose driven”, even if that means lower profits for a while.
A. Because it’s the morally right thing to do.
B. Because what your business does now will be noticed and judged, by your staff and
customers, by the media and the state. Firms that fail to behave responsibly may face backlash
on every front, and their reputation may be tarnished for years to come.
Once the humanitarian crisis recedes, that’s when firms should start to focus on
making money again.
COVID-19 BASE STATION | #9

6. Nike closed all of its stores in the U.S., along
with other parts of the world, to try to curb the
spread of the virus on the 15th of March.
COVID-19 BASE STATION | #9

7. 2. Think about what your brand could do to “help the War Effort”
Think creatively about how to use your people, assets and marketing to save lives, reduce suffering & boost
public morale.
1. Saytherightthings.Yourcommunicationwiththepublicshouldbeusefulanduplifting,
avoidlookingopportunisticandself-serving.
2. Providepeoplewithuptodateinformation.Thereisclearlyabigrolefortightlyfocussedactivationforall
businessesrightnowgivingpeopleusefulinformationaboutopeninghours,supplyproblems,deliveryoptionsetc.
3. Helppeoplefindothermeansofbuyingyourproducts.Directresponseadvertisingcanalsoplayanimportant
functionalrole,enablingpeopletobuyproductsandservicesonlinethattheycan’tbuyintheshopsrightnow.
As an added benefit, anything you do that helps people and gets noticed will also help build your brand.
COVID-19 BASE STATION | #9

8. COVID-19 BASE STATION | #9
Many companies, LVMH (owner of luxury brands, such as Louis Vuitton)
among them started manufacturing hand sanitizer after the outbreak.

9. COVID-19 BASE STATION | #9
Adaptation02

10. To adapt to such a complex crisis, businesses have to see what is best for them.
In a “normal” recession, the main problem facing businesses is a collapse of demand, but
because this crisis is not just an economic one, the changes are much more complex than
that. Besides demand, supply can also collapse, advertising needs to be thought through
much more carefully, and liquidity can also become a problem.
Some sectors or firms are facing a shortage of demand. (eg. premium products, sectors
affected by social distancing, etc.) but some sectors or firms are facing a crisis of supply
(eg. household items, commodity items, etc.)
Some companies may have enough money to weather the storm (big companies,
strategically important companies, etc.) vs. some may face a cash-flow crisis (startups, etc.)
In summary, the crisis is unique to each company/product – plan accordingly.
COVID-19 BASE STATION | #9

11. 1. The effectiveness of any advertising strategy is greatly dependent on your supply
After the initial reactions start planning your advertising based on how your supply chain looks:
A. If there is any disruption in the supply, or distribution of your product, proceed with care, since in case the
demand exceeds supply, the short-term ROI from advertising will be zero, or it may actually piss people off,
especially if it looks opportunistic. There may be several reasons causing supply & distribution problems, such as:
a. People not being able to generate demand (they are locked into their homes)
b. Unexpected shifts in demand are causing shortages (people bought all the toilet paper)
c. Staff absences and other disruptions along supply chains are causing shortages
d. Companies are facing liquidity problems
B. But if supply exceeds demand, use all the force of advertising at your disposal, to rebuild demand.
Of course some activation is always welcome, no matter the supply situation, such as providing people with
information about possible disruptions and how to deal with them.
COVID-19 BASE STATION | #9

12. Skyscanner’s #wewill campaign asked people to
share their stories of where they will go and
who they will visit once the pandemic was over.
COVID-19 BASE STATION | #9

13. 2. Think about demand as you plan your advertising strategy
Short term:
Immediate demand is about necessity.
Every industry is affected by a crisis,
some lose demand, some gain demand.
1. Is the demand growing for your
product? Then your brand can
capitalise on the retreat to a
simpler, more thrifty, home-based
lifestyle.
2. Can the demand be kept up with a
little push? Then adapt your brand
to the changed world.
3. Is the demand inevitably going
down? Then hunker down and wait
for the return of normality.
COVID-19 BASE STATION | #9
Medium term:
Medium term demand is about financial
stability. As the fear of the disease is
slowly disappearing, the financial crisis
will hit, making people become cautious
with their spending.
1. Can your brand thrive when people
are cutting back financially? Then
advertise.
2. Can you adapt to a less affluent
world? Then advertise.
3. Is your product something that
people cut from their budget? Wait
until the good times return.
Long term:
Long term demand is about brand
presence. During times of crisis, people
can change their consumption patterns.
When all this is over, some of the old
habits will come back, but some of the
new habits may stick.
1. Is there a long term marketing job
for to do, making sure that people
don’t forget you, and come back to
your brand when this is all over?

14. McDonald’s built it’s campaign during the lockdown on the Drive Thru
COVID-19 BASE STATION | #9

15. 3. Use all Ps, when planning your marketing strategy
To keep a balance, think about all 4 Ps of marketing – Product, Place, Price and Promotion.
1. Product & Place: Think hard about whether you need to change the mix of products and services you offer,
and how you deliver them. That may mean minor tweaks (bigger bags of pasta, online delivery), major shifts
(shifting production from perfume to hand sanitizer) or total disruption (temporary suspension of business,
redeploying staff to other industries).
2. Price: In a normal recession, caused by a collapse of demand, it may make sense to cut prices. But careful,
over-using discounting is risky, as it may have long-term effects on the consumer’s price sensitivity and the
brand image. Whatever you do, don’t forget, that profiteering is not a good strategy in the medium to long
term both from a market share and also from a public response point of view. There’s more to price than
maximising short term profit.
3. Promotion: Marcoms are an obvious cost to cut in times of trouble, but they are also a powerful tool for
stimulating demand, and a recession can be a great buying opportunity.
COVID-19 BASE STATION | #9

16. COVID-19 BASE STATION | #9
Many telco companies gave free data to clients,
or special packages ot healthcare workers.

17. 4. Think about the media market
Let’s not forget advertising ROI also depends on how expensive advertising is, and how much competition you
face.
A. Firstly, this may be a good time to increase share of voice. If your competitors are cutting spend, then it’s
easier for you to increase share of voice and accelerate growth. In fact, you can cut spend and increase
SOV, provided you cut less than your competitors do. And ESOV is a crucial prerequisite of long term brand
building even during a crisis.
B. Secondly, remember that media prices will fall, as demand for ad media shrinks, but supply (measured in
eyeballs and ears) does not. In fact, supply increases for some media. People watch more TV, listen to more
radio, use social media more and read more online news. With less money chasing more eyeballs, cost per
view plunges.
So if your company has the funds and the courage to maintain higher spend than your competitors, a
downturn is a great media buying opportunity.
COVID-19 BASE STATION | #9

18. COVID-19 BASE STATION | #9
Recovery03

19. Think like a startup
When a firm or product first launches, sales tend to rise quasi-exponentially due to a
combination of increased supply and herd behaviour. We can expect the same pattern of
growth as lockdown is eased. People will be slow coming back at first, with only a few hardy
souls venturing out. Then their friends will follow them, and their friends will follow them,
until things get back to whatever the new normal is.
So, as you start back up, maybe you should think like a start-up!
COVID-19 BASE STATION | #9

20. 1. Imagine you are launching your business from scratch when putting together
your advertising strategy
At first, ads can accelerate growth as lockdown is eased.
A. The analysis of the IPA Databank shows that new products and businesses are unusually responsive to advertising, and the
same may be true for products and services that are emerging from lockdown – it may only take a little nudge to get people
rushing back to buy your brand.
B. New firms and products tend to require a more activation heavy mix – the aim being to tell people that your product exists,
what it does, and a lot of functional stuff about opening hours, limits on numbers of customers allowed in at a time, etc.
C. If supply is increasing slowly, keep adspend modest at first - otherwise you risk being overwhelmed with demand you can’t
fulfil - but increase spend as capacity improves. But if your supply can be turned back on quickly, you may want to advertise
heavily to shift units.
But ads can help firms reach a higher “normal” level of sales once the lockdown is completely over.
A. As things return to normal, the balance in the communications mix should tilt gradually from activation back to the brand.
B. Similarly, people will come to need less information, habits will become more instinctive again, and emotional priming from
brand ads will become more important than functional information.
COVID-19 BASE STATION | #9

21. Aside from establishing a COVID-19 fund, Google has also made a wide range of their resources,
including their video conferencing service, Hangouts Meet, available for free.
COVID-19 BASE STATION | #9

22. COVID-19 BASE STATION | #9
Summary

23. Phase I. - survival
As in wartime, the normal rules of
business do not necessarily apply.
• Be prepared to forego profits for the
Greater Good on the short term
• Think about what your brand could
do to “help the War Effort”
COVID-19 BASE STATION | #9
The crisis is unique to each
company/product – plan accordingly.
• Think about supply
• Think about demand
• Think about all your Ps
• Think about the media market
When restarting a useful analogy can
be made with start-ups.
• Imagine you are launching your
business from scratch
Phase II. - adaptation Phase III. - recovery