How to communicate brand and why it is important to activate communation during covid period - SLOVAK market.

1. Why & how to
communicate
brand in COVID 19
period
SLOVAKIA

2. HOW TO
STAY
AHEAD OF
THE CURVE
LEADERS OF TODAY ARE WINNERS OF TOMORRThe biggest market share gains, but also the biggest
losses, are not achieved in growth phases but in
downturns, which usually only last ten to twelve
months
ADAPT TO NEW CONSUMER BEHAVIOR
Consumer habits learned during the time of crisis will
form future shopping habits
DON’T RIDE THE WAVE. BE THE WAVE!This isn’t the time to run a scheduled campaign,
strategies need to adjust

3. 3
Leaders of today are winners of tomorrow
“The biggest market share gains, but also the biggest losses,
are not achieved in growth phases but in downturns, which
usually only last ten to twelve months.”
Ebiquity, Coronavirus: what changing media habits mean for brands, March 24, 2020

4. Leading in the time of crisis means better position in
times of recovery
4
While most companies tightened their belts, successful leaders, trading
lower short-term profitability for long-term gain, refocused rather than
cut spending [. . .] Yet in expansionary periods, successful leaders spent
significantly less on [selling, general, and administrative costs] than did
their former peers.
Think of a recession as a sharp curve on an auto racetrack—the best
place to pass competitors, but requiring more skill than
straightaways. The best drivers apply the brakes just ahead of the
curve (they take out excess costs), turn hard toward the apex of the
curve (identify the short list of projects that will form the next
business model), and accelerate hard out of the curve (spend and
hire before markets have rebounded).

5. Brand communication is more important than ever
5
Heightened DTC brands’ growth
trajectory
Changes in shopper behavior towards e-commerce at a larger
scale is especially favorable for Direct-to-Consumer brands
that rely on this supply chain model. Smaller, challenger
brands that rely on e-commerce for distribution will have a
much larger audience. Moreover, this being their native
environment, they are more skilled and prepared to battle for
shopping baskets.
Out of sight, out of mind
When brands are out of sight in traditional shelves and in media,
competing brands may move their positioning up in
consideration set.
The pitfalls of short-termism
Some industries are benefiting from this sudden surge of
consumer spending. However, narrowly focusing on short term
gains and suppressing brand building campaigns may result in
loss of brand equity over time.
The coronavirus crisis will test us all, but
marketers need to think long-term and
keep building their brands, protecting
their staff and honoring their values.
-Mark Ritson

6. 6
Adapt to new consumer behaviors &
market situation
Behaviors learned today, will form habits in the future

7. Shopper behavior may change for good
7
In the current situation, consumers have been forced to change
several facets of their behavior. This change is positive for many
industries and offers an opportunity to try to sustain behavior
beyond this period
Behavior snowballing
We are seeing dramatic changes in consumer behavior as a
means of adapting to a crisis situation. Moreover, change in
general is a catalyst for others to come: Consumers who are
adapting to new situations are likely to change other aspects of
their lives. They are more likely to consider brand to whom they
were indifferent in the past
Soaring e-commerce
Consumers, who were hesitant to use online shopping are now
forced to do so and these habits will likely prevail in the future
Purchase triggers are now online
As shoppers reduce in-store visits and lockdowns, triggers for
purchase are moving from shelves into homes. Online
advertising is supplementing the point of sale experience in
many instances
Brands that superimpose their
communication to the new point of sale
moment online, will create positive
purchase habits

8. People will keep spending on affordable luxuries as
antidotes to reality
8
It is true that luxury brands will have a hard time in the
months to come. However, this doesn’t mean that
consumers will cut out indulgences altogether from their
lives.
New routines at home
This challenging period has brought about a spike increase
in sales of electronics, entertainment subscriptions and
gaming. These are all categories that were previously
deemed nice-to-have, but are now sought after. These
expenses are now more easily justifiable even if they are
considered luxuries.
Premium is the new luxury
As stress/boredom levels escalate, consumers will find
justifications for purchasing premium products as antidotes
to reality. We expect to see strong sales of FMCG luxuries
such as premium drinks, snacks and confectionery.

9. Industry Demand YoY Comments
Demand
WoW
Travel Insurance -35% -46%
Pharmaceuticals +78% +26%
Online grocery retail +579% +63%
Retail trade 0% -11%
Home office
furniture
+147% +48%
Travel and Tourism -30% -28%
Insurance products for travel vertical are heavily impacted. Be
on a lookout for travel restrictions and when people will start
planning vacations. Local travel plans will soar so look for
opportunities with product USPs.
Most demand is virus focused, not consumer brand interest.
Focus on where searcher is in journey.
Restaurants closing increases need for goods in home. Essentials
and cleaning supplies (+1700%). Home delivery, stocking up,
food for emergencies terms trending. Monitor in-store v. online
retail trends daily.
Adjust messaging, extensions, creative formats to reflect current
fulfillment options. Tighten inventory-based rule sets used in
bidding and budgeting to prevent spend against unavailable
product.
Increased relevance due to time spend at home. Increase
targeted tactics to people who are working from home on
regular basis (without being quarantined) and showcase product
USP benefits for health and comfort.
Real consumer travel interest has declined (-10%). Be assistive
and use organic strategies to direct consumers to updated travel
policies. Add negatives for “cancelation” to conserve budget.
Paid search is a reflection of both evolving consumer
demand & full range of business situations

10. Industry Demand YoY Comments
Demand
WoW
Internet service
plans
+77% +26%
Loans +14% +15%
Consumer
electronics
+23% +9%
Bank Accounts -5% -13%
Video on Demand +80% +17%
Finance +28% +2%
Budget fluidity to capture switchers. Increase CRM tactics to
retain & upsell current subscribers.
People are looking for solutions in crisis. This includes
individuals and small business owners from the most impacted
verticals. Force product changes in screening and fully online
funnel.
Home and home-office technology up (e.g. networking
equipment). Gaming and entertainment system searches.
Branding initiatives reduced due to production concerns. Tailor
copy to emphasize product benefits aligned with global
situation.
Demand for new bank accounts is obviously low. People are
looking to their current banks for solutions and some banks
even stopped onboarding new clients.
VoD is a heavily growing segment that was put on steroids due
to the quarantine. Acquisition plans should be stronger than
ever thanks to increased relevance.
Be attentive to other verticals given connectivity with finance.
Monitor negative keywords & Intent signals to avoid clicks
without commercial intent. Emphasize online banking tools and
apps.
Paid search is a reflection of both evolving consumer
demand & full range of business situations

11. New consumer behaviour brings to life new
vocabulary

12. 20 minutes in average increased time on internet in
MARCH
Source: Admeter data
145.9
140.0
165.6
125.0
130.0
135.0
140.0
145.0
150.0
155.0
160.0
165.0
170.0
Jan 2020 Feb 2020 Mar 2020
ATS development
ATS Internet total in min.

13. The highest increase in reach show websites with catalogues,
then tabloids, economic, online streaming & communication
websites.
Source: Admeter data
66.6%
64.7%
68.6%
53.1%
48.8%
59.3%
40.5% 39.4%
44.8%
40.6%
38.3%
42.0%
29.0% 28.3%
35.3%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
1-15.1.2020 1-15.2.2020 1-15.3.2020
Websites reach development
Communication services Hobby websites News websites
Databases and catalogues E-commerce Economy, finance, law
Online TV, radio Tabloid Fun & games

14. TOP Slovak websites are now able to reach more users.
The highest increase is by sme.sk, hnonline.sk & dennikn.sk
Source: Admeter data
12.4%
15.6%
22.7%
25.6%
21.5%
29.7%
31.2%
29.3%
40.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
1-15.1.2020 1-15.2.2020 1-15.3.2020
Slovak websites reach development
aktuality.sk cas.sk centrum.sk dennikn.sk etrend.sk hnonline.sk
pluska.sk pravda.sk sme.sk topky.sk zoznam.sk

15. - Increase in traffic on the news websites by 40% means higher amount of available
impressions, what has impact on:
o Higher reach
o Lower price - > e.g. programmatic branding decreased by 19% from 12,5 EUR CPM to
10,5 EUR CPM
- Increase in traffic on thematic websites means:
o Higher reach
o Better targeting possibilites
Situation on the online market - overall
Source: data from our suppliers

16. – Advertisers are more focused on sales activation or smart brand communication
connected to actual situation
– Live stream watching increased
– People are watching more live streams and longer content
Situation on the online market - overall
Source: data from our suppliers
Inventory is increasing, number of advertising is decreasing =
advertising is cheaper

17. „Now it´s a unique
opportunity to build a
brand to gain more
revenue“

18. Short term sales activation campaigns boost short-
term sales, but no base sales at all

19. Long term brand campaigns have lower short-term
impacts however they increase standard flat base
sales on long-term basis

20. Long-term prospects –
reaching new customers
Immediate prospects
Reaching existing
customers
Long Term
Short Term Sales Activation
Brand Building
Broad but slower effects, big paybacks
Narrower but earlier effects, smaller paybacks
Short-term sales activation campaigns are reaching mostly existing
customers with smaller paybacks.
Long-term brand campaigns are reaching new customers with slower,
but higher paybacks.

21. Impulsive shopping
categories should focus more
on sales.
Non-impulsive (higher
consideration) shopping on
brand.
Durables
Durables Automotive
Durables Non-Automotive
58
69
42
31
FMCG
FMCG Food & Drink
FMCG Non-Food & Drink
60
56
40
44
65 35
Financial services 80 20
Other Services
Other Services Telco/ISP
Other Services ‘Perishables’
51
58
48
49
42
52
Brand
Optimum balance
Retail 64 36
Sales

22. 22
Lower investments of competitors &
cheaper inventory means
Higher opportunity to increase SOV in
brand communication and gain higher
SOM!
-15
-10
-5
0
5
10
15
-150 -100 -50 0 50 100 150
ESOV= SOV-
SOM
Annual SOM
growth
(percentage
points)
Relationship between ESOV and SOM
Excess share of voice (ESOV), defined as share of voice (SOV) minus share of market (SOM). In other words, if you want to grow your market share you need to over invest.
An average of 0.5% points of share growth can be expected per 10% points of ESOV. Thus, a brand with a market share of 20.5% and ESOV of 10% points would expect to grow over a year
to 21%.

23. Creative tips
23

24. This isn’t the time to run a scheduled campaign,
strategies need to adjust
24

25. We need to start preparing for the good times
25
There are clear economic and social costs of going into lockdown.
Among them is the reality that only when something is removed
from our lives do we truly appreciate how much it is missed. This,
toppled with economic uncertainty has dampened the public
mood.
Positive surprise
Consumers are much more attentive to content. Content that
stands out of the crowd is likely to be much more impactful now
than in normal time
Brands to the rescue
Consumers expect brands to step up their game and bring more
than just entertainment value to their advertising. Social
responsibility, charity programs and random acts of kindness will
be rewarded in the form of brand salience and loyalty.
Re-emergence of engagement
Consumer thinking is now polarized between very emotional and
very rational. Reframing a brand purpose around social
responsibility, positivity and courage will engage emotionally
primed consumers
Businesses need to adjust marketing
activities. When restriction are lifted
even gradually, this will usher in an
unprecedented era of feel-good
celebration. Winning brands will lead
this celebration

26. 26
Brand creative content recommendations

27. Recommended
formats for brand
communication
27

28. Make sure that your brand’s media mix makes the
most of the current top opportunities
28
HBBTV
Switch to DVB-T2 boosts penetration of
connected smart TVs, now > 30 %
households.
HbbTV is the fastest growing technology on
the market with promising impact & results.
DIGITAL HTML5 DISPLAY &
VIDEO
Multiscreen digital consumption is well
established, delivering high reach
opportunity.
Amplified by HTML5 creative, current
inventory disposability and prices make it a
must.

29. Banners & video examples
Branding
Instream video (Trueview, nonskippable
video)
Bigger banner sizes
What is Lorem Ipsum?
Lorem Ipsum is simply dummy text of the printing.
Where does it come from?
Contrary to popular belief, Lorem Ipsum is not
simply random text. It has roots in a piece of classical
Latin
Panorama
(only
mobile)
Cue Card (PC+
mobile
Preview link: https://support.google.com/displayvideo/answer/7575782?hl=en

30. bratislava@performics.com
www.performics.com/sk