Are we in a recession? Depends on who you ask. Inflation, interest rates, banking and changes in consumer behavior beg even more questions. Among them, “Where can we cut?”
Experienced marketers know to seize the opportunities during challenging economic climates – and they have the wisdom to strategically position the brand for long-term success.
Look at the bigger picture
Cutting the marketing and advertising budgets might seem like a short-term fix, but it can cost much more in the long run. Instead, find and analyze metrics that support continuous marketing through a challenging market versus the cost of trying to gain back brand visibility if you go dark. According to Nielsen data, recovery of equity losses from a complete marketing pullback takes a staggering three to five years.
Know your customer
How well do you understand your current customers and what’s motivating them to buy? Is your targeting and messaging still on point? Maintaining a steady drumbeat of brand visibility is important for long-term success, and it needs to stay fresh and relevant to make an emotional connection with the people who are most likely to buy.
Re-consider the channel mix
Evaluate performance across all channels with a critical eye. Consider reallocating dollars where you consistently see the best ROI, and then continue to test, monitor and optimize across and within campaigns.
Analyze what you can afford to scale back on or pause without affecting your overall awareness and engagement. Monitor and continuously optimize any marketing campaign that’s actively delivering your best business results to make sure it shines.
Zig when the competition zags
Investing in marketing and advertising now may seem counterintuitive, but it’s a smart strategy because the vacuum created in the market actually favors the ad buyer, with lower media costs and less competition. Your brand could even stand out and gain more ROI in a down market if your competitors are going radio silent – especially when campaigns boost flagging buyer confidence.
Additionally, creative and agile budget allocation, especially in the digital marketplace, can have long-lasting results if done effectively, depending on who your audience is and how they like to be engaged.
Most recessions are short-lived
Finally, 75% of recessions only last a year, and 30% end within two quarters. Making major media budget cuts now might act as a temporary Band-Aid, but ultimately, the cost of gaining back marketplace traction and harming your overall brand in the process is too high to risk a complete marketing pullback.
In a down market, it’s critical to defend your ROI and the overall health of your brand. If you want a partner to help you maximize your marketing spend and stand out from the competition, let’s chat. Reach out to Barbara Wray at barbara@wickmarketing.com or (512) 564-4289.
