As a business owner, you may feel compelled to cut costs during times of economic downturn. It’s understandable. Sales may not be as strong, and your company may be making difficult decisions. One of the first things many cut is the marketing budget, including paid and organic digital marketing initiatives. However, this knee-jerk reaction could be detrimental to the long-term success of your business.
Marketing initiatives, particularly those in the digital space, play a crucial role in maintaining brand visibility, generating leads, and driving revenue. While it may seem counterintuitive on the surface, continuing to invest in paid marketing during tough times can be a smart move.
Why You May Want to Invest in Paid Marketing in A Down Market
1. Reach a wider audience
With more people staying at home and relying on digital channels for information, the potential reach for your digital marketing campaigns is higher than ever. People are spending more time on social media, search engines, and other online platforms, which means there are plenty of opportunities to capture their attention with targeted ads.
2. Stay top of mind
The economy always turns around again – even if people aren't actively looking to buy your product or service right now, you want them to remember your brand when they are ready to make a purchase. Consistent digital marketing efforts can help keep your brand top of mind, making it more likely that people will think of you when they're ready to buy, especially if you’re able to remarket to them later.
3. Get more bang for your buck
Not everyone will follow this advice, so during an economic downturn, advertising costs may go down as competition decreases. This means you may be able to get more advertising for your money than you would during a period of high demand. Taking advantage of this can help stretch your marketing budget further, giving you more opportunities to reach your target audience.
4. Gather valuable data
Digital marketing initiatives provide valuable data on how your target audience is interacting with your brand. By continuing to invest in digital marketing during tough times, you can gather valuable insights into what's working and what's not. This can help you optimize your marketing efforts for better results in the future.
5. Stay ahead of the competition
While some of your competitors may be cutting their marketing budgets, continuing to invest in digital marketing can give you a competitive edge. By staying top of mind and reaching a wider audience, you may be able to gain market share even in challenging times.
Of course, it's important to be strategic about your marketing efforts during an economic downturn.
Tips for Getting the Most out of Your Paid Marketing Initiatives
1. Focus on your target audience
During tough times, it's more important than ever to reach the right people with your marketing messages. Make sure you're targeting the right audience for your product or service, and tailor your messaging to their needs and concerns during this time. Now is truly the time to focus on what’s in it for them.
2. Be sensitive to the current climate
People are more likely to remember brands that show empathy and understanding during tough times. Be mindful of the current climate and adjust your messaging accordingly.
3. Be flexible with your budget
While it's important to maintain a consistent presence with your marketing efforts, it's also important to be flexible with your budget. Monitor your campaigns closely and adjust your spend as needed to ensure you're getting the best return on investment. Consider strategically moving budget from expensive channels that yield fewer insights (eg, radio, TV, print) and into channels that allow for more agility based on real-time data (eg, search, programmatic, social).
While it may be tempting to cut marketing budgets during an economic downturn, it's important to continue investing in paid digital marketing initiatives. By doing so, you can reach a wider audience, stay top of mind, get more bang for your buck, gather valuable data, and stay ahead of the competition. Just be sure to be strategic about your marketing efforts and adjust your messaging and budget as needed to get the best results.
If you’re looking for help figuring out what marketing mix is best for you during this time, contact us. We'd love to talk with you about solutions.
