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,Oxygen Advertising managing director and 4As senior adviser Datuk Johnny Mun said that regardless of what the situation may be, marketers need to continue investing in brand building albeit there may be tweaks to the focus and content of the messages communicated.

PETALING JAYA: The importance of brand owners upping their advertisements is gaining momentum despite the tough economic conditions brought about by the Covid-19 pandemic.

Companies which are hesitant or deferring their spend on ads to save costs would end up losing their market share. Smaller companies tend to take a bigger hit in this regard.

Research undertaken by Australia-based Ehrenberg-Bass Institute, among others, showed that when brands stop advertising for a year or more, sales often decline year-on-year following the stop.

It added that on average, sales fell 16% after one year, and 25% after two years.

It also noted that the rate of decline is fastest for brands that are already declining before the advertising stops.

Brand size also matters, the research said, adding that small brands typically suffer greater declines than bigger brands.

Bigger, growing brands tend to continue to grow after advertising stops for one to two years, whereas the sales trend quickly reverses for small, growing brands, it pointed out.

Based at the University of South Australia, the Ehrenberg-Bass Institute is the world’s largest centre for research in marketing.

KFC Malaysia chief marketing officer Chan May Ling (pic below) said that during challenging times like these, marketing dollars are often the first variable to be shifted.KFC Malaysia chief marketing officer Chan May Ling

This is because marketers are often challenged with the hypothesis of “how much of an advertising dollar will give us the immediate return of sales” for the purposes of optimal profitability.

“With lockdown conditions, media consumption has shifted with a 19% year-on-year growth in digital channels. Brands that have made the pivot towards e-commerce or social commerce will have probably shifted their advertising dollars towards aggressive acquisition for transactional growth.

“With that, an emergence of brands has taken this opportunity to continuously advertise with a focus on digital channels as sales are most measurable on these platforms,” she told StarBiz.

Chan said brands would need to stay relevant with the right social currency in order to deepen their presence in the consumers’ minds.

Marketers today would have to deploy an “always on” strategy to continuously be present in the consumers’ minds to drive brand salience which would lead to a purchase, she noted.

On whether advertising and upping investments in brand building would benefit marketers, she said: “There is no one-size-fits-all solution to this. However, a recommended approach is to test and learn the hypothesis.


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