Wine Intelligence: ‘Continue marketing spend – it’s more effective now’

According to advice disseminated by Wine Intelligence last week, drinks brands should continue their marketing spend during the Covid-19 pandemic, because it’s “more effective than ever”.

Brands should not be tempted to cut their marketing budgets, because their spend will in fact be more effective during the current pandemic, says Wine Intelligence

In a five-point piece on wine marketing during and after Covid-19 written by Lulie Halstead at Wine Intelligence, the first, and most critical point, centred on brand promotional spending.

With a picture of a person shouting into a megaphone, Halstead, who heads up the drinks research agency, made her primary message, “Continue marketing spend – it’s more effective now”.

Explaining the reason for this, she wrote, “As companies cut marketing spend, each $ that is spent becomes more effective as it delivers a proportionally higher share of voice (SOV) amongst a total reduced spend across a category.”

Continuing, she noted, “This results in this spend being more ‘effective’ than ever with studies showing that ‘All things being equal, a brand whose share of voice (SOV) is greater than its share of market (SOM) is more likely to gain market share’ (Clarke, 2009) so increasing SOV leads to higher market share in the longer term, holding true also during times of recession.”

A similar view was previously shared by db following an interview with Tom Harvey, who is client director at alcohol marketing agency YesMore.

Commenting that sales in the off-trade are soaring, he said that there are plenty of reasons why producers, retailers, and even hospitality businesses should still spend money on advertising.

Harvey also told db that drinks brands must focus on this sudden shift in behaviour and “tap into an audience that they can keep loyal for years to come.”

Harvey said this is particularly important for emerging startups that have launched in recent months and have yet to build up an established consumer base. While people are stuck at home and have more time on their hands to experiment with new products “now is the time they are going to go elsewhere.”

Meanwhile, Halstead at Wine Intelligence penned four further key marketing lessons for the current pandemic, which we have reproduced over the following pages.

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