Shouting for attention in times of crisis: this is why it works!

Article Lisette Kruizinga – de Vries & Mark Vroegrijk – Senior Methodologists

Summary

During the corona crisis, many companies cut their marketing spend to save costs. However, prior research shows that companies that don’t cut down on these expenses, arise better from a crisis. One reason for this is probably that the relative share, the share-of-voice, that these companies occupy in the total advertising market within the category, has increased. Just because other companies have started to advertise less. Where previously both your brand and your competitors constantly tried to “shout” over each other – and as a result the consumer did not really understand any party, your message will be heard loud and clear by the consumer. In other words: the same expenditure on media use may be more effective if you achieve a higher share-of-voice in the (partial) absence of your competition.

Our results confirm this hypothesis. Media use becomes more effective with a larger share-of-voice. This effect occurs with a share-of-voice of at least 20% and gradually levels off as the share-of-voice increases. For instance, with 50% share-of-voice you already get +20% extra return from every media pound spent! These results have important implications for marketing managers.

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