While recessions are surely disconcerting for consumers, they can be especially unsettling for business leaders. Reduced consumer spending – and even just the fear of it – can cause businesses to scale back what some think are excessive expenses, such as marketing and advertising. We think it’s a bad idea to reduce your digital marketing during a recession and, in this blog, we’ll tell you why.
During a recession, money gets tight and a normal urge is to cut spending on marketing. Cuts can be made but they must be made strategically so the organization can succeed during downturns. The idea that consumers are buying less often leads a business person to think that marketing may be a fruitless waste of money.
In reality, the opposite is true. Without marketing, it’s nearly impossible to generate new business. Advertising during a recession is more critical than ever. In an uncertain economy, your brand positioning and marketing investments are critical to your success for a number of reasons.
Why pursue digital marketing during a recession
Recession proof marketing makes a difference now more than ever and instead of cancelling digital marketing campaigns, businesses would actually benefit from ramping them up instead. Research going back decades proves that sustaining or boosting your market presence pays off better.
Reducing your marketing during a recession is a massive strategic error. Your company becomes invisible because you are assuming that during a recession, no one is looking for your products or services. As a result, you leave the door open for your competitors who choose to continue their marketing. During a recession in particular, you want to let the world know that you are open for business.
It is important during bumpy times to let your customers, prospects, and employees know that you’re still there for them. If you vanish, there’s a chance your target audience will move on to someone who is more visible.
Reducing Your Marketing Budget Only Saves Money in the Short-term
When your profit begins to lessen, it may feel natural to reduce your outlay on certain investments. Marketing often gets cut back because the benefits are only achieved in the long term. Out of sight and out of mind, many businesses cut off vital marketing services and then pay for it down the line. A decrease in ad spending may look good on the books, but it doesn’t fare well for your brand’s longevity.
Marketing is the link to your clients and prospects, connecting them to your brand. Without it you risk falling out of relevance. Instead of decreasing your budget, a recession offers the opportunity to reevaluate your strategy and reallocate your spend. It’s a time to tap into how your clients and prospects are absorbing information during a recession and then appeal to them through that lens.
It may feel like a relief to cut spending during difficult times, but that solace is temporary. Use this time to invest in your strategy so you can achieve long-term success.
Digital marketing allows you to nimbly control your spending and delivers real-time analytics which allows you to be flexible and modify your strategy rapidly if needed.
Some of the most affordable, but impactful marketing opportunities during a recession are:
- Social Media Marketing & Advertising
- Pay Per Click (PPC) Advertising
- Email Marketing
- Content Marketing
- Search Engine Optimization
Carefully Adjust Your Budget
Rather than taking a sledgehammer to your marketing budget, carefully consider your brand’s spending. This is a time to examine your current marketing campaigns. Which ones are working and which aren’t? There’s nothing wrong with ending the campaigns that aren’t achieving the desired results and reallocating those dollars to reinforce your successful campaigns.
Another thing to consider before slashing your budget is that many of your competitors are doing the same thing. While your competitors disappear from the market, your brand should refine its strategy to thrive in this environment. With an even more precise and effective marketing plan and a now wide-open playing field, your brand has the perfect opportunity to stand out and grow.
Demonstrate to Prospects Why You’re the Best Option
During a recession, buyers are more critical. They’re less willing to spend money on products simply because they are available. Your prospects want to know that they are spending their money on the best and most valuable products and services.
Place the focus of your marketing strategy on clearly conveying your value proposition. What makes your company unique? Why should prospects choose you and not your competition? What makes you better than others in the space? This is known as niche marketing, and it can help you reach more prospects and create better relationships with them.
Niche marketing isn’t about attracting just any prospects – it’s about connecting with your ideal clients, who are most apt to be long-term and loyal. Pinpointing this smaller target audience may seem counterintuitive. But in actuality, focusing on a niche tends to help brands be more successful, especially in tough economic times.
The key is finding those people who are the best match for your products or services and marketing directly to them. This helps you connect with consumers who are more likely to convert. You can communicate your value proposition in a variety of ways: through your social media marketing strategy, on your website, and in the way that your brand engages with consumers in the digital space.
Consistent Marketing Shows Stability and Enhances Loyalty
The most important set of people to consider during a recession is your loyal customers. In difficult economic times, the status of many businesses is uncertain. It’s important to let your customers know that you’re doing okay. A strong marketing campaign displays the health of your company and allows customers to know you’re still available to them.
Marketing allows communication with your customers. Social media and email marketing are two of the most common (and affordable) ways to check in with loyal customers as well as connect with new prospects. Your customers are used to hearing from you. Reducing your budget may also impact these practices, estranging you from those who are most loyal to you.
When making purchasing decisions, prospects are going to search for a brand that they know still functions. If your prospects aren’t clear about you because of a lack of marketing exposure, there’s a good chance they’ll move on to someone who is more visibly reliable. If you stay active, present, and understanding of what your customer needs with your marketing, you will be well-equipped to weather the storm.
The Bottom LIne
It may be surprising to learn that boosting digital marketing during a recession can lead to growth. Companies that continue to market themselves during a recession remain at the forefront of the mind of prospects, customers, and consumers. So, when they inevitably gain back the money to spend, they intuitively look toward these brands.
The message you are transmitting to your audience is one of strength, leadership, and big-picture-mindedness – all of which people look for during unsure times. Reducing your marketing during a recession will reduce your online presence, leaving the door open for your competitors to take advantage and fill in the gaps. Instead of cutting marketing spend and communication, consider heightening your efforts.
At Obsessed With Success we’re a full-service digital marketing agency that specializes in identifying and connecting you to your ideal clients. We can help you stay at the forefront of their minds even during a recession. To learn how we can help you, schedule a free marketing strategy session with us today!
