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14 January 2021
How premium brands can thrive in a recession
Effectiveness studiesMarketing in a recessionEurope (general region)
Innovation, emotion and reach are three features which are often seen in successful campaigns for premium brands in a recession, according to a new report from EACA, Effie Awards Europe, and the Effectiveness Partnership
Why it matters
Recessions usually send businesses into defence mode, but radical cuts are a terrible way to do this. Premium brands grow from commanding higher prices, meaning that in recession they need to maintain a strong customer base from which to grow once good times return.
Product innovation is key to most successful premium brand campaigns. 64% of successful premium brand campaigns support new product launches in a recession; in non-recessionary periods, this is also the main objective of 54% of successful campaigns.
Emotion pays for premium brands in a recession. 44% of successful campaigns in a recession use an emotional approach to 33% in non-recessionary times.
High-reach broadcast channels are key. Thankfully, they are also cheaper in recessions, as brands cut discretionary ad spend. But successful campaigns tend to use mostly TV, with digital channels aiding in tandem.
A recession is commonly defined as a period of two or more consecutive quarters of declining GDP.
A premium brand is defined here as charging >20% than the median price of the brand’s category but, unlike superpremium brands, commanding a mass audience. Premium brands enjoy a reputation for quality and high social cachet.