This snapshot focuses on how the MediaWorks channels and team can help support advertisers and clients navigating a period where Kiwi wallets have largely slammed shut.
Kiwi’s spending has dropped right back with four consecutive months of retail spending decline. They are worried about job security and consumer confidence is at lows similar to those seen during the Global Financial Crisis. The RBNZ is also remaining bullish in keeping a lid on spending with the OCR remaining unchanged at 5.5%.
How we can help support advertisers navigating this period
Research from previous economic downturns shows that advertisers who maintain a strong presence in a turbulent market can position their business to be in a much stronger place when the market recovers.
Advertisers who maintain or grow their advertising budgets during a recession saw an improved ROI on their spend which was sustained over a 2 year period, as well as incremental sales lifts for those who increased their media investment.
What can our clients do to make the most of their advertising budgets?
Investing in brand building communications will help grow “future demand” for our clients brands. “Future Demand” is created when consumers who aren’t in market right now become aware of a brand and add it to their consideration set. Brand building marketing tactics create future demand.
MediaWorks channels are well placed to both grow and harvest demand - so get in touch today to see how we can help.
Sources:
Stats NZ Electronic Card Transactions May 2024.
ANZ-Roy Morgan Consumer Confidence 27 June 2024. Analytic Partners ROI Genome