When a recession hits (and due to the nature of economics, they are inevitable), it is common practice to reduce budgets. Like a sinking ship, businesses need to throw overboard the expenditures they perceive as the lowest value. It may seem counterintuitive to invest in digital marketing during a recession, but it’s actually one of the most critical times to do so.
When a recession hits (and due to the nature of economics, they are inevitable), it is common practice to reduce budgets. Like a sinking ship, businesses need to throw overboard the expenditures they perceive as the lowest value.
It may seem counterintuitive to invest in digital marketing during a recession, but it’s actually one of the most critical times to do so.
During a recession, buyers tend to be more cautious when purchasing goods and services. The decline in consumer confidence is paired with the increase in pressure for proven returns on expenditures.
Result: the marketing budget is often the first to be cut in hopes of the business staying afloat better.
The word often does not mean that it is necessary optimal for you. Investing in digital marketing during a recession can serve your business well, making it shine while others stagnate in the eye of the consumer. The marketing choices you make during a recession can deliver huge positive impacts on your business both now and in the long run, after the economy is back to a boom.
Increasing your advertising efforts can actually effectively increase sales as well as market share during the recession. There are three reasons:
When your target market notices your brand more during a recession, they will at least subconsciously believe that you enjoy corporate stability and can be relied upon for goods and services. Customers won’t worry about your potential bankruptcy, which raises their confidence in you. Even if they cannot afford to make purchases now, they can remember and choose your business in the future.
Even if you maintain your current marketing budget, you can take advantage of the fact that there will be less competition in terms of advertising. Whether you’re buying ad space, investing in search engine optimisation, or other tactics, you can likely purchase more advertising than during an economic upturn. In today’s digital age, consumers don’t stop browsing the web just because there is a recession. With less noise in your industry, you can actually gain more attention from your target audience. This can efficiently improve your brand recognition, reputation, and trustworthiness.
Share of Voice (SOV) is an important measure that shows how much of the market you own when compared to your competitors. It takes into account factors such as brand visibility, emotional response from those who talk about your brand, social media mentions, and more. Digital marketing can help you capture a meaningfully larger market share that can be long-lasting.
Since many marketers tend to put the brakes on digital marketing during a recession and thus find fewer leads and decrease their brand awareness, you can obtain a significant advantage over your competition.
Once the recession ends, your business will be at the forefront of your target market’s minds thanks to effective digital marketing efforts during the recession. While it may seem like you are not getting as many returns on your marketing expenditures during the recession itself, once it is over, your business is in prime position to prosper.
Digital marketing can support your business, but it does need to be an intelligent, well-planned recession marketing plan. Affordability, financial circumstances, industry, and other factors can all determine how you need to pare costs and adjust your strategies.
There are several recession-based marketing tactics that can help you promote your business in a way that matches consumer confidence levels, user intent of those who find your online content, and the attitudes and values of consumers during the particular period of recession you are in.
Acting fast can give you the upper hand, though it can also be riskier. If you are a business that sells products, streamlining your product lines and reducing product complexity can make it easier for both your customers and you. Advertising fewer products at greater frequencies during a recession can be more advantageous than advertising plenty of different ones.
Recessions can often alter pre-existing trends, either boosting them to be more prominent, or cementing them as undesirable due to more cynical consumer attitudes. There are certain mistakes that are considered faux pas and can tank your brand image.
Let professional marketers help your business today. Mensa Marketing offers comprehensive digital audits of websites as well as marketing counsel to help you strategise for a recession. Contact us via email at admin@mensamarketing.com.au or by phone on (+61) 488 822 234 to book a free consultation.
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