The World Economic Forum has highlighted ‘gloomy developments in 2022’ with the possibility of a recession just around the corner. This means that most companies will be tightening their belts, cutting out unnecessary spending. One of the first budgets to be slashed in such cases is often the marketing budget as companies go into survival mode. The 2008 recession saw a 13% drop in ad spending in the US. It may seem logical as the purchasing habits of customers can be unpredictable during adverse times but the experts at the Harvard Business Review disagree stating that only the tone of advertising needs to change – not the advertising spend itself.
Why Continue Advertising During a Recession?
One of the biggest ways a company can survive (or even thrive) in a recession is through the continued patronage of their clientele. There have been several cases in history that demonstrate how businesses have grown during recessions through smart marketing campaigns.
Marketing your products and services continues to remind your customers that the company is still accessible and can be relied upon to take care of their needs. It demonstrates resilience, sending a message that your business is here to stay despite the economic downturn. In fact, companies who stop marketing during a recession can take longer to bounce back from its effects than companies who continue reaching out to their audiences. Keeping your marketing campaigns going is an essential strategy for the long-term health of your business.
Building Marketing Campaigns During A Recession
It would be wise to follow the advice of the HBR marketing experts by changing the tone of your marketing outreach. Understanding recession psychology is a big part of this. Customers typically categorize their spending into essentials, treats, postponables, and expendables. Understanding where your products lie in this perspective can (and should) dictate how you reach out to your clientele. However, if you do fall into the ‘expendables’ category, remember there are always customers that are comfortably well off or ones that ‘live for today’ and it may be wise to spend your advertising money targeting these customers instead of those on a tight budget.
Why Digital Marketing is the Way to Go During a Recession
Digital marketing is increasingly becoming a go-to tactic during tough times, and for plenty of good reasons too.
Online marketing typically requires smaller budgets than more traditional forms of advertising like radio, newspapers, and television. You also get real-time conversion data which means you can use this to tweak your digital marketing strategy to get the most out of every cent.
2.Shorter Commitment Periods:
Digital marketing campaigns require no real commitments at all. They can be initiated or halted at your convenience. For example, pay-per-click campaigns can be started and stopped on a daily basis or you can choose whether or not to send out emails. The only real commitments you need to make are making sure your website is up to date and optimized for search engines.
3.Targeting and Retargeting:
Running online ads lets you target really finetune the audiences you want to reach, so there is no wasted advertising money if done right. You can target audiences based on the web activity as well as send advertisements to audiences who may have visited your website but not followed up with a specific activity.
4.Cut Above the Noise:
Apart from being able to target audiences pretty much down to the individual level, it can be easier for your brand to get noticed during a recession as companies in your sector cut back on their advertising.
Intriguing, isn’t it? At Agency Media, we make sure that digital ads are data-driven and aligned to suit your audience and help meet your company’s targets. Get in touch with our team to have a chat about how we can help you get the most out of your marketing strategy.