Updated: Jul 2, 2020
Before we get started, we’d like to thank the silent heroes for our packages and keeping us healthy, safe and fed:
1. Everyone: For doing your part and staying home!
2. Mail Carriers: For making our home office transplant possible
4. Grocery Workers: Being on the front lines of the coronavirus battle
Small businesses are certainly getting hit the hardest however the larger companies may have a greater impact on the U.S. economy. The good news is that Andrew Coumo, New York’s Governor, has taken charge where Washington hasn’t. As announced during Tuesday's press conference, hospitalizations are down for the first time and back to work discussions have begun. This is a good sign for the epicenter but we have to remember to stay the course or we may see a resurgence, similar to what China is bracing for.
To provide some U.S economical context, coming out of the 2008/2009 recession we were relatively flat riding 2-3% YOY growth. 2018 was no different with an expansion of 2.9%. While 2019 slowed, the impact was small (-0.6%) resulting in 2.3% in growth. As we look to the future, economic forecasts, as reported by the U.S. Bureau of Economic Analysis, suggest that we could see declines reaching as high as -17% in July. Whatever the bottom, we should all brace for impact. Stimulus packages will drive short term gains, but companies large and small need partners that can help cut costs before cutting staff!
While small businesses struggle, large brands have the potential to bankrupt the economy. If these brands crumble, we can expect a 13% lift to the current unemployment forecasts. Kraft Heinz is one of those companies. We all know them for the ketchup on our fries and the mustard on our burger, but did you know that they’re tapping into $4 billion of credit? As profits decline, cash, in the form of debt, is needed to sustain the business. But at what cost? If more brands continue to tap into debt, what does that mean for the future of our economy? What does that mean for your bottom line?
During this time brands need to audit their business practices while maintaining a trusted and empathic voice to consumers. Marketing should be prioritized and complemented with partners that have expertise across brand, publisher and agency sides to reduce hidden fees.. Currently, only $0.06 of every dollar is going to media due to too many intermediaries. If brands can’t find existing value, they’ll likely struggle to make debt payments under the pressure of a virus-induced economic slump and more layoffs might be imminent. To do our part, Tech Recipes is offering added value marketing audits to aid in the job sustainability effort.
With less people outside, consumer habits are shifting, and brands need to take notice.
Programmatic Discounts: 35-50% off of historical rates
Software Prioritization: 40% of organizations are spending more on consumer insight software
China Supply: Companies with supply chains dependent on China should consider less ad spend as a way to mitigate economic loss
Streaming Consumption: Up 61% as people spend more time at home
Out-Of-Home: Ad spending should be de-prioritized due to social distancing and isolation measures
Events: (e.g. music festivals, sports, etc.) are no longer a viable source of marketing
Communication: 43% of consumers find it reassuring to hear from brands they “know and trust” as COVID-19 pandemic spreads
Clutter: 43% of consumers believe coronavirus messages from retailers sound too similar and “are losing their impact.”
All companies are looking for money, and quick. Tech Recipes is the only partner that has the brand, agency and publisher expertise needed to remove your marketing waste. We are able to move consumers into the sales funnel while removing the wasted spend that comes from contextual targeting. Let us help by providing a free frequency, media, data or technology audit that will save 20% from day one!
As traditional marketing provides less return, digital should be prioritized! Tech Recipes will maximize your media value by 20-30% through transparency, automation, analytics and consumer data. No one knows exactly what’s to come, but here are our five actions brands can take, in partnership with Tech Recipes, to reduce debt reliance and save jobs!
Ad Fatigue: Determine if ads are being delivered too often causing consumer frustration
Website Monitoring:: Monitors which websites you buy ads on to determine high value from low
Expose hidden fee: Consolidate the areas that you are buying from
Omni-Channel Analysis: Inform ,multi-channel selection for optimal reach and frequency
Boost Ecommerce: Enhance product visibility, engagement and traffic