When it comes to marketing in a recession and whether or not you should be increasing your marketing budget, then the answer is a resounding yes. The fact is, whether we like it or not, you can’t escape the bad economy.
But, you may ask, if a recession is a sign of an economic downturn, then why is digital marketing growing at an astronomical rate? You don’t have to look very far, or be an expert in the field, to see what is causing this boom. The economic crash of 2008 was the catalyst for a new wave of online marketing businesses. Although the practices have been around for many years, it was not until the latest recession that digital marketing flourished and has continued to grow over the years.
If you’re not advertising, your competitors are.
Customers may look at the same products and services on different websites and with the benefit of social media and review sites, they may choose your competitor based on the strength of their marketing activity.
Many companies still believe they should just cut back on all forms of marketing budget during a recession, but that mindset can come close to the death of any business.
“The proportion of company revenue allocated to marketing was cut almost in half, from an average of 11% in 2020 to just 6% in 2021.” – Forbes
A drop in marketing investment can be detrimental to your digital presence, making your company vulnerable to competitors who are out to snatch your customer base!
Here’s a quick tip: if you’re going to invest in your business, stick with it.
We understand the market is down. We get it. But the truth is, if you’re a business owner, the only thing that matters is whether your business is up.
And the only way to make sure your business is up is by continuing to invest in marketing.
Marketing isn’t just about getting people to buy your products or services—it’s about building your brand and establishing yourself as an authority in your industry. When the market recovers, those who continued their marketing investment even during a recession will be well-positioned to grow their business once again.
Here are our top 5 reasons why you need digital marketing in a recession!
- Low market competition = Affordable cost per lead
The first point of call for many companies during a recession is to reduce the marketing budget. This is good news for those still in the game as they will enter a market that’s less aggressive during a bidding war and also less competitive on advertising channels, such as Google and Facebook. As a result of this, the cost of online advertising plummets, which means you will spend less per click. Kerching!
- SEO has the potential for huge organic growth for your business
Search engine optimisation will help SMEs to stand out and drive more leads to your company. If you’ve not considered SEO for your website, then it is still not too late to jump on the bandwagon; SEO is a long-term strategy that you’ll always need.
- Content marketing can help to build trust during a time of uncertainty
Now more than ever, people are anxious about their future and how they spend their money, especially after the covid-19 pandemic. With content marketing, you can help build trust and credibility with your customers by offering educational and relatable content that captures their attention and brings your company to the forefront of their minds when they are ready to commit.
- Build relationships with your audience through Social Media
Over the past few years, social media has evolved at a phenomenal rate, and what was once a platform to connect with friends and family has now become a space to voice opinions and frustrations and share tips & advice. Digital marketing can help you use this to your advantage and offer your products and services to customers who need them the most.
- Data is king.
Digital marketing does more than what it says on the tin! Not only can you create a digital presence for your customer base, but you can also use website analytics to understand user behaviour, analyse purchase trends and learn insightful information. Data will allow you to optimise your marketing strategy and ensure you are spending your marketing budget wisely and targeted at the right audience.
- Low market competition = Affordable cost per lead
What industries do well in times of recession?
The food and grocery delivery industry has grown rapidly over the past couple of years. We’ve all noticed a sudden spike during the covid pandemic where nearly everyone relied on food delivery services when they were unable to leave their homes. Thanks to our guilty pleasures, Deliveroo is now one of the fastest-growing food delivery brands in the UK, with a global brand growth rate of 51.9%
Entertainment for kids
The recent pandemic years have pushed for a change in the upbringing of children. Outdoor play has declined due to safety reasons, and parents and carers had no choice but to turn to tv shows and online entertainment to pacify their children.
As of March 2022, Cocomelon – Nursery Rhymes was the YouTube made-for-kids channel with the most subscribers, at 131 million.
Ecommerce – Online shopping
The change in consumer shopping habits this year saw 87% of British shoppers utilise online channels to purchase goods, compared to just over 50% back in 2008. This shows the exponential demand for businesses to offer their products and services online and make it easier for customers to shop.
On a final note…
It’s safe to say we are all feeling the pinch right now, but at the same time, we are still searching for ways we can buy our favourite brands. Demonstrating the added value of your products and services and building trust with your customers will be the reason why they continue buying from you.
Sure, we’re no Martin Lewis, but we do know a thing or two about digital marketing. So if you are struggling with your marketing budget – we can help.
Digital channels are here to stay, and understanding their inherent strengths and weaknesses is the first step towards getting value from your marketing investment.
The way people access the internet is changing, and so should your marketing strategy.
Investing in digital marketing during these tough times will ensure that your company will not just survive, but thrive. We promise it’ll be one of the smartest decisions you’ll make for your company!
Until Next Time