Should you advertise during economic uncertainty?
YES.
Implementing effective marketing strategies during economic uncertainty is crucial to coming out of that period successful and profitable.
As the saying goes, "In times of prosperity, advertising is a wise choice, and in times of adversity, it is essential."
Effective marketing is a continuous process that demands persistent effort, and it's preferable to start preparing for recession before it occurs. Repeatedly throughout history, businesses that have invested in marketing experienced increase in market share and revenue.
I talk about EXACTLY this at Digital Marketer’s Australia 2023 event in March -
https://www.digitalmarketersaustralia.com/. My topic is “Recession Proof Your Business: Optimise Your Customer Data To Cut The Junk And Automate Your Digital Marketing”. Reach out if you’d like to learn more about it and buy your tickets (assuming you’re reading this before mid March 2023)
Why Businesses Should Not Stop Marketing & Sales Activities
During the economic recessions of 1981-82 and 1974-75, firms that sustained their advertising budgets experienced more progress than those that decreased or eliminated their spending. In the 1981-82 recession, those firms witnessed a remarkable growth of 256%.
In the 2008 recession, many businesses were uncertain about the economy, resulting in a 13% decline in advertising expenditure. Nonetheless, data indicated that companies and organisations that upheld their marketing efforts were 3.5 times more visible to consumers.
In recent times, marketing has become increasingly intricate, stressing the need for a customised approach and a mixture of diverse media channels. Marketing methods and activities have evolved and become more intricate and diverse, making it more challenging for firms to attract new customers.
The current trend of the great resignation and the economic downturn may cause firms to encounter difficulties in recruiting and retaining competent marketing personnel in-house.
To overcome this challenge, outsourcing marketing activities could be the answer, especially now that businesses have the opportunity to delegate their marketing projects to specialised marketing agencies and expert teams.
Economic downturns do not halt innovation; on the contrary, there is a compelling argument for making it a primary concern.
One example of innovation during tough times is revamping pricing strategies by offering new and compelling service tiers or bundles. In a downturn, consumers are more inclined to compare prices and search for the best deal as brands reduce their prices.
As one recent headline in the Ecommerce Times put it, “Increase Spend or Lose Sales.” Brands that increase their spending tend to perform better in the long run.
According to the Analytic Partners report, 60% of brands that raised their media spending during the previous recession experienced a greater return on investment, and those that invested more in paid advertising saw a 17% boost in incremental sales.
All Your Efforts Will Come to Fruition
It is important to keep in mind that every economic recession ultimately comes to an end. Some brands will succeed in increasing their market share by offering excellent products, great experiences, and maintaining a strong brand promise.
Conversely, there will be others who miss out on this opportunity due to their shortsightedness. Reducing marketing budgets during economic uncertainty could place a business in a disadvantageous position when the inevitable economic recovery starts.
Partner With An Expert
Recession creates a sense of unpredictability for businesses. Jobs may not be as stable as before, cost-cutting measures may have to be taken, and consumer spending patterns may shift. Will your business make it through?
Economic times - whether good or bad - we’ve got your back! Partner with Gather n’ Grow to improve your brand recognition and connect with potential clients any time - in economic uncertainty or expansion!
