With mounting pressures and financial struggles coming front and center, it’s understandable that marketing campaign efforts get put on the back burner during a recession. However, this is not only erroneous thinking but also an opportunity to stand out from competitors hunkering down and hoping for the best.
By recognizing the unique opportunities associated with economic downturns, brands have an unprecedented chance to transform their misfortune into marketing gold — so what can you do as a business owner? Read on to discover how your marketing team or marketing department can leverage recessionary times as an effective marketing tool!
How to Take Advantage of the Recession
When times are tough, it can be difficult for brands to remain competitive and profitable. The recession caused by the global pandemic has dimmed prospects for many businesses and made it more challenging than ever to attract potential customers – but don’t lose hope just yet! With the right workflow background information, market research, and tactics, your company’s brand can leverage the current economic decline into a powerful marketing advantage.
The fear of economic deflation is a common topic of discussion among businesses and consumers alike. However, while the uncertainty surrounding an economic downturn can be daunting, it can also be an opportunity for brands to take advantage of the situation and grow their businesses. In fact, a recession can be the perfect time for business owners and brands to turn their marketing efforts into gold.
Importance of Advertising During an Economic Crisis
As Henry Ford once said, “Stopping advertising to save money is like stopping a watch from saving time.” This quote emphasizes the importance of continued advertising during an economic collapse, even if other businesses may be cutting back. Advertising such as content marketing, internet marketing, and search engine marketing is crucial for brands to reach new customers and increase sales, even during economic downturns.
During deflation, many businesses may cut back on their marketing campaigns and advertising budgets, leaving fewer brands vying for ad space. By taking advantage of these lower costs through innovative brand strategy, business marketing managers can increase their reach and grow their customer base at a lower cost than during a booming market.
Strong brands have proven to be more recession-proof than others. During the 2008 economic decline, healthcare and grocery industry companies experienced growth in spending. Staples such as alcohol, candy, and entertainment also saw increases in sales. As a result, brands with substantial market share, like Coca-Cola, were able to maintain their position during the crisis and even increase their brand loyalty.
It’s also worth noting that some business industries may experience a spike in consumer demand during an economic crisis. For example, video game company Activision saw a revenue increase of 92% during the 2008 economic decline as people turned to entertainment to escape stress.
Digital Marketing During Recession
In times of recession, businesses tend to cut back on marketing budgets, including targeted ads. However, this could be a huge mistake. Warren Buffet states, “Advertising is the best way you can grow to get more customers, get more sales.” A recession can be the perfect time to invest in social media marketing, content marketing, viral marketing, influencer marketing, relationship marketing, and search engine marketing and turn adversity into opportunity.
One of the advantages of advertising during a recession is that the cost of marketing campaigns is typically lower due to decreased competition. Businesses can potentially get more value for their money by reaching more prospective customers and target audiences for less.
Advertising during Deflation Examples
To illustrate this point, let’s look at a few examples. One of our clients, who run webinars, typically spends around $40 per registrant. However, at the start of this year, the cost dropped to $20, half the usual price.
Another client in a different marketing field experienced a 50% reduction in lead costs at the start of the year.
While it’s still early to draw definitive conclusions, these examples show that the current economic climate may give businesses a unique opportunity to increase their digital marketing efforts and benefit from lower costs.
By investing in marketing and advertising during an economic downturn, businesses can stand out from their competitors and increase brand awareness. This is especially important for companies looking to gain market share, gain more potential buyers, and emerge stronger after the economic crisis.
Overall, a recession can be a promising time for marketers and business owners to reach customers and promote their brands through effective marketing campaigns. By continuing to advertise, building effective marketing campaigns, and taking advantage of lower advertising costs, brands can increase their reach and grow their customer base.
In addition, strong brands with loyal customers and an innovative digital marketing strategy may also be more resilient during an economic decline. So, rather than fearing a crisis, brands should see it as an opportunity to turn their digital marketing strategies into gold.
The recession has brought unprecedented challenges to small businesses, especially in the marketing industry, but it has also created an opportunity for brands to take amazing leaps ahead of their competition. Business owners must stay agile and focused on leveraging customer needs to revitalize their marketing strategy and improve company performance. By investing in the right marketing strategies, one can easily turn what may seem like a disadvantage into a competitive advantage.
Giant Partners is here to provide brands with the necessary tools and services needed to succeed in this uncertain economic climate. With our digital marketing expertise and data-driven marketing solutions, no challenge is too big or small.
Don’t let this economic downturn bring your business down – start creating a future of success with an effective marketing strategy! Connect with us today and make sure you get ahead of the competition.