5 reasons why crypto projects need PR in a downturn

In economic downturns, companies will cut costs, tighten their belts and retreat. It is ingrained in human DNA, because those who did not adapt did not survive. But with both personal and financial matters, it is not enough to simply shrink or hide.

The data is in. Research shows that those who maintain – or even increase – PR spending do best in such times. They are also best positioned for better times too. Some of the biggest changes in crypto have come in bear markets. For those who are positioned to exploit, there are opportunities in the lean times.

Related: How to use PR during a recession

1. Do not cut the signal when sailing in choppy waters

For those who react to such moments as if they were truly a crisis or emergency, the last thing you want to do is reduce your ties to the world. Cutting PR at such times is a bit like being stranded and ignoring the radio or flare sitting next to you. PR professionals are a lifeline – an important resource that should be utilized, not saved for another time.

It is at such times that evolutionary pressure comes into play the most, for example “survival of the fittest”. This includes the term “adaptation”. It may not be enough to sit still until the storm passes, and rely on previously accumulated “fitness”. It is a time when selective pressures are brought into play, sorting the reactive and dynamic from the complacent. And that process can be brutal, rewarding only a few.

2. Make sure the glass is seen as half full

There may also be a time when, due to market pressure, it becomes necessary to convey bad news to the public. This may involve forced price increases, reductions in the number of employees, extended delivery times and so on.

Delivering such messages is fraught with reputational risks, including giving the casual impression of bankruptcy. PR professionals can help navigate strategies and stories that deliver difficult messages within broader contexts that emphasize a more optimistic long-term positioning.

Difficult messages can be delivered within the context of milestones, placing the information within a wider context of development and progress. As always, care should be taken to avoid the insincere and the contrived. But such elaborate campaigns in such times can ensure that the “glass” is at least seen as half full.

Related: Why maintaining a strong media presence is key to succeeding in an economic downturn

3. The opportunity to increase “share of voice”

Much more than crisis management and sweetening difficult pills, PR can unlock opportunities in such times. Bear markets and recessions trigger cuts in PR and marketing budgets, reducing industry noise. For those who are happy not to cut, this is an opportunity to stand out, with far less effort than usual.

The added association for the audience is that, unlike your competitors, you convey the message of going strong. It’s an opportunity to leave a lasting impression, take on competing narratives and establish your project as an industry leader. As others cut back on PR efforts, journalists will also be on the lookout for content.

Similar to the “cash is king” strategy of those investors who avoid taking positions when prices are high and save money for market falls, PR can also go much further in such times. In such quieter times, without changing anything in PR spending or strategy, a project or company’s share of voice (SOV) grows immediately as competitors cut costs. Such times are opportunities for those who are more willing, or better positioned, to adopt proactive tactics.

4. Brand loyalty fends off the bear

Crypto projects in a bear market are prone to losing a portion of backers who are inclined to sell their currency and disappear. This causes many problems, not least low liquidity. To retain supporters, long-term brand loyalty must be established.

Creating and maintaining a community of supporters is one of the best strategies for weathering downturns. One only needs to look at Ethereum’s online community. Even when the token value has dropped or the development team missed crucial deadlines, the community has remained strong. Hiring a PR team to build and maintain such a community can be critical to surviving bear markets, as well as optimizing at other times.

Ensuring your brand is protected means being smart about budget changes and being open to variations on your usual strategy. PR is actually a budget-friendly strategy for maintaining relevance during downturns. While PR and marketing are often grouped together, the distinction becomes crucial in such times. PR can provide earned media, for example, in place of the paid marketing media. Sacrificing PR at such times means being silent to the public, and potentially also sacrificing important lifelines of trust and brand loyalty.

Unlike advertising, earned media is an evergreen investment, potentially outliving bear markets, perhaps for years. Those who maintain PR in such times tend to not only survive the downturns, but come out stronger than the competition when the good times return.

Related: How Great Entrepreneurs Find Ways to Win During Economic Downturns

5. The data is clear

Although it may seem counterintuitive, the companies that maintain their PR investment during downturns, even those that increase it, tend to be the winners. There is also a lot of research that proves it.

Those that cut costs more than competitors are the least likely (just 21%) to overtake rivals when times improve, according to a recession study published in a 2010 Harvard Business Review article. The same study shows that 9% of companies actually stronger than ever from such times.

In another study (Field & Binet, 2008), researchers found that cutting budgets can help safeguard short-term profits, but it comes at a post-recession cost to brand and profits. Once again, they found that it is the growing investments that are best positioned to achieve long-term profitability, and gain a greater share of voice against their competitors.

A measured and balanced approach

It’s easy to attract attention in a bull market, but bear markets sort the wheat from the chaff. The right PR experts are skilled at ensuring important coverage in such times. This is the time when the public needs to hear from projects the most.

The decision to reduce, maintain or increase PR efforts in such times should be based on a careful analysis of the project’s financial situation, market position and long-term goals. An adaptive, measured approach that balances resources with the need to maintain a strong brand presence has proven to be the best strategy in tough times.