Rampant inflation has put Western Europe’s brands and businesses under severe pressure to answer how and where to advertise when consumers are slashing their spending. We focus on key trends and strategies that can help firms preserve market share and consumer loyalty in the near term and lay foundations for future growth.

Back to Basics: A Dark Consumer and Business Mood Dictates Rethink of Advertising and Marketing Plans

As inflation soars, companies must fight for a share of consumer spending. The continuing impacts of the Russia-Ukraine war and other political, social, and commercial issues affect nearly every household and business. With a possible recession looming, consumer spend is falling, and many firms are struggling to survive.

So, how can advertisers persuade consumers of the value of their products and services, especially if their prices are also rising?

• Europe’s consumers are prioritizing bottom-line needs, not nice-to-haves. Nonessentials—such as restaurant meals, vacations, home upgrades, and out-of-home entertainment—are increasingly on hold.
• Even for essential purchases, many shoppers are turning from well-known labels to discount or generic products. Only the more affordable brands and retailers benefit directly from this trend.
• Marketers will need to divert budget from brand advertising to direct-response campaigns to get consumers to buy.