How to Meaningfully Market in a Financially-Strapped ‘Back to School’ Season
With the arrival of September, we’re entering that period which some parents (and one iconic brand) might even argue is ‘the most wonderful time of the year’. No, we’re not talking about the winter holidays, but rather ‘back to school’ season – the moment when children leave their nests to once again migrate to classrooms and lecture halls around the globe. It’s an exciting affair for many, which can only truly be signalled with a flurry of purchases and preparations. In fact, Publicis’ research has found that it’s the second-biggest shopping event of the year, with potential sales of 31.3 billion USD.
However, research also shows that this seems to be trending downwards, with cracks in consumer enthusiasm becoming more and more evident. According to Deloitte, Canadian families plan to budget $586 per student this year, down from $597 in 2023 and $661 in 2022. So, what’s causing this? Why are families tightening their budgets?
As it turns out, there’s several factors. As Publicis Canada’s chief strategy officer, Mary Chambers, points out, the economy is in rough shape. People know they can’t have it all, and instead must find better deals, reuse items, and stretch those dollars further. Moreover, on the marketing side of things, brands are starting to show their true colours. Some rise to the occasion, showing great empathy and understanding of the times, but others keep their old tricks and contribute to the decrease in ‘brand loyalty’. It’s a chaotic time, and one that can only be navigated through clever, sincere marketing that truly serves the needs of the people.
So, to learn more about what this looks like, and in general, the factors contributing to the situation as a whole, LBB’s Jordan Won Neufeldt sat down with Mary for a chat.
LBB> From the top, the subject of ‘back to school’ advertising and budgets has been quite hot as of late. So, what has inspired the conversation? And what are the main trends being talked about?
Mary> It’s hot because it’s always hot. For retailers especially, this is second best to Christmas in terms of sales. But this year is different – we’re more preoccupied with our finances than usual, more in debt than usual, and as a result, we’re more selective about where we spend our dollars than usual. This isn't just true for consumers, it’s a challenge for marketers as well. Everyone is strapped and everyone is trying to save, so these sales-heavy occasions take on even more weight.
LBB> Building on this, what factors are driving the decrease of ‘back to school’ budgets and enthusiasm for spending? Why is there such a need to stretch dollars further?
Mary> Simply put, the economy. We’ve reached a point where we can’t have it all, and we need to be selective. Sadly, for many it’s a choice between buying that shiny new thing or putting food on the table. Inflation, interest rates, rising costs, accumulated debt – it all creates a tough reality to navigate.
LBB> Is this something you’ve seen before during your time in the industry? And if so, will past solutions be relevant? Or do advertisers need to learn something all new to make the most of this?
Mary> We definitely see waves of financial stress for consumers, and some years are worse than others. Covid-19 was difficult, 2008-2010 was tough, but this feels different. This feels like a perfect storm of multiple challenges converging at once.
With that said, if past solutions were to truly understand, empathise with, and care for the consumer, then yes, they would be relevant. But our world is changing so fast - technology, how we spend, where we spend - it’s not enough to stick to the status quo. People are dynamic, always ageing out and ageing in, and acknowledging and exploring that constant evolution requires a commitment to constant learning. And to be honest, it’s part of what makes our work so exciting.
LBB> With that in mind, what should advertisers and brands be looking to do right now? Is there a best course of action, in your opinion?
Mary> Always remember that the brand relationship is a holistic one. You need the consumer to want your product, you need them to appreciate your efforts around value and loyalty, but most importantly, you need them to understand the role your brand plays in their lives. Especially in a period where spending is down, your brand needs to be present on a higher level all the time. Remind the customer why they keep you in their lives and why you're valuable to them. Tough times are when brands need to show up for people, and a purely transactional approach can do more harm than good. Instead, be considerate, generous, and demonstrate that you understand your customer and what’s going on in their lives.
LBB> Can you give us some examples of campaigns which do this well? What sets them apart?
Mary> In the sea of back-to-school campaign sameness, it’s hard to find campaigns that aren’t ‘kids dancing in colourful clothes’. Don’t get me wrong, catchy music and cute kids are always pretty engaging, but we haven’t seen something like Staples’ ‘The Most Wonderful Time of the Year’ in a while.
That said, one of the spots that stood out this year was Instacart’s ‘Bunny Ears’. It spoke to such a true tension for parents: how busy and rushed they always feel against their desire to simply just be present with their kids. In this spot, Instacart does some terrific storytelling around this tension, and shows how its brand can help resolve it. There will likely be some fair questions here around brand attribution, but they nailed the insight and found a real role for the brand at a time of year when everything seems to get busier.
LBB> Equally so, what mistakes and pitfalls should marketers avoid making? Are there any that come to mind?
Mary> Try not to be tone deaf. That means never losing sight of your customer just because you’re worried about your bottom line. That’s key not just because it’s decent, but because the bottom line will suffer more in the long run.
It’s also important to keep sight of your brand. It’s very tempting to focus exclusively on sales, but we know that forgetting to tell meaningful stories that resonate with people can hurt you over time. It’s often brand love and the loyalty that comes from that love that gets us through the tough times.
LBB> Speaking of brand loyalty, advertisers also have to contend with the fact that generally, it’s trending downward. Is this something that’s recoverable? And do you think brand loyalty will be directly tied to the strength of deals offered at a time like this?
Mary> The strength of promotions and offers might encourage people to keep coming back, but a more enduring way to build relationships is to clearly articulate how you help solve challenges that your customers face. Ideally, that’s something beyond price, because if another competitor comes to market with a better offer, that loyalty starts to falter. The price gets your customer in the door, but the way you frame your offers can also work to build equity. Find ways to make them more interesting, unexpected, engaging, or fun, so that they're ultimately more relevant.
And remember that brand loyalty is built over a long period of time. It comes, like any relationship, from constant reminders and reinforcements of ‘why us?’.
LBB> If this is done well, do you think public attitudes and economics surrounding ‘back to school’ will change in the coming years? Or should marketers be settling in for the long haul?
Mary> That’s two different questions. To answer the first part, attitudes around ‘back to school’ will remain full of excitement and anxiety, because it’s such a transitional moment in the year. And marketers need to understand that. But, I also don't think marketers should ever operate under the assumption that things are going to get easier, so yes, settle in for the long haul. We know consumers have higher expectations of brands every year.
The truth is that people will always have challenges they’re facing in their lives. Right now, it’s financial instability, next year it may be something else. As marketers, the long haul focus should be on building relevance and resonance with your audience. That way, no matter the challenge we find ourselves up against, we have a role to play in the solution because we have a defined role in their lives.
LBB> With all that said, how are you personally approaching the season at Publicis Canada?
Mary> What’s great about ‘back to school’ is that September seems to mark a new year for all Canadians, even more so than January does. So, for many of our clients, it’s not necessarily an explicit back-to-school campaign, but showing up at this time of year in a way that reinforces the role they play in the lives of Canadians. Given the importance of value and savings at this moment in time, we are seeing an emphasis on loyalty programmes, targeted offers for specific audiences, and elevating different components of the value proposition.
We’re also seeing a strong focus on new Canadians across the board. There are plenty of people who won’t just be settling into a new grade, but potentially a new school or city as part of moving to a new country. The start of the school year is a chance to start fresh, and we want to make sure that sense of renewal feels accessible to everyone.
LBB> And what are your research processes like? How do you ensure your campaigns are backed by data that will ensure the satisfaction of consumers?
Mary> Because the market, and our consumer, is dynamic, our research process is rarely the same. It adapts to the needs of each project. We always do a full contextual review, looking at the category and customer, as well as the larger cultural picture that might inform how we move forward. That cultural understanding is vital these days as brands try to maintain relevance, so we need to be diligent and have our finger on the pulse. It’s almost as crucial as our diligence around the consumer, because culture can be tied so deeply to identity.
We also collaborate closely with our in-house research agency, root. It has a number of proprietary tools at its disposal to help us stay current while digging deeper in our understanding of the people we’re talking to, so that we can feel confident our storytelling is on the right path.
LBB> Finally, is there any advice you’d give to parents who’re looking for actual good ‘back to school’ deals and marketing? How can they sort the genuine, good offers from brands just trying to make a quick buck?
Mary> First and foremost, know your wants and your needs, and trust yourself. I think the consumer is a lot smarter than we as marketers ever give them credit for. They know what authenticity looks and sounds like. They don’t owe us their business, and no brand should act like they do. It’s our job to earn their business every day. If a consumer believes we deserve their trust, then they’ve made the right choice.
To that end, remember that marketing is the art of influence. So, go to the brands you love and trust – those you’ve been loyal to over time and those you want to influence you. Those are the brands who have put in the work to earn, and keep, your respect and your business.
