Recession-Proof Your Brand Strategy with Interactive Video

By kerv • August 25, 2022

Companies everywhere are bracing for a recession and in preparation, brands are closely evaluating their budgets. It’s common for advertising and marketing to be the first to go in a recession, but there are a few things brands should consider before jumping to cuts. 

A study by McGraw-Hill Research analyzed over 600 companies to compare those who continued to advertise during the 1982 recession against those who did not. The study found that those who continued advertising during the recession saw 256% higher sales post-recession. Companies that did not advertise during a recession saw no increase in market share and only an 18% increase in sales post-recession.

While budget cuts are inevitable with an economic downturn—in fact, one digital media exec told CNBC they expect to see a 20% advertising revenue cutback by year-end—there are ways to recession-proof your brand strategies to make the most of their advertising spend and continue reaching consumers.

Video will be stronger than other forms of advertising

We’ve known it’s true for years now, but it bears repeating. Video is one of the best ways to engage and educate consumers. eMarketer predicts that by the end of 2022, the number of digital video viewers in the US will reach 258 billion. On top of that, these 258 billion people will average 2 hours and 41 minutes consuming digital video.

As we saw during the height of the pandemic, consumers turn more and more to social media and digital content for entertainment, to stay connected with loved ones, and to educate themselves on current events during turbulent times. By continuing to deliver video ads, brands can ensure they’re making the most of their ad dollars by reaching consumers where they are spending the most time. 

Interactive video powers seamless consumer experiences

Interactive technology takes video a step further. By overlaying video with interactive elements, consumers are able to further explore the content and gather the information they need. 

Interactive videos also offer a frictionless commerce experience. Brands can link products in the video out to specific landing pages. So when a consumer sees an item they like in the ad, they can use the interactive element to click through to the product’s page for a smoother purchasing path. In some cases, interactive elements can even enable direct purchasing within the video. 

Unique engagement insights improve ROAS

Streamlining the consumer journey through interactive elements can significantly maximize the value of a brand’s ad spend, but it’s not the only way interactive technology improves video campaigns. The nature of interactive elements allows brands to derive insights from the organic actions taken by the consumer.

Brands can see what products consumers interact with the most, what scenes in a video drive more clicks, and, in some cases, even learn which retailers a consumer prefers. These insights drive powerful sequential messaging and add even more accountability to video ads. 

Economic downturns might force brands to tighten up their budgets, but it’s prime time to invest in video advertising and leverage interactive technology to better deliver a brand’s key messaging. Brands who continue investing in interactive video will not only stand out amongst competitors, but they’ll also deliver immersive consumer experiences, ultimately driving lift to their ROAS.

Ready to add interactive video to your brand strategy? Contact KERV today.

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