In light of economic uncertainty, businesses face critical decisions regarding their marketing strategies and where to get the most bang for their buck. Recent industry reports acknowledge maintaining or even increasing marketing budgets can yield long-term benefits in challenging times like these.
This is supported by previous research from the Ehrenberg Bass Institute, finding on average brands saw their sales fall 16% after one year without advertising compared to the last advertised year, and by 25% after two years.
In this blog, we explore key insights and trends from the marketing landscape, emphasising the importance of maintaining brand visibility, leveraging organic content experiences, prioritising brand awareness, and embracing social media marketing and influencer trends. Let’s delve into the data.
Don’t Go Dark — If You Can Continue Spending:
As a general marketing principle, maintaining a higher share of voice (SOV) than the share of market (SOM) leads to brand market share growth. Cutting marketing budgets during a recession can result in subsequent loss of market share that is challenging to recover. While the economic situation may limit spending for some brands focused on job retention and business continuity, it is crucial to recognise the significance of sustained marketing investment.
- 55% of marketers report that the potential for a recession has impacted their marketing activities.
- 51% of marketers confirm that an economic downturn in 2023 would affect their marketing activities.
- 24% of marketers anticipate a reduction in their marketing budgets during a recession.
Organic Content Experiences Are on the Rise:
During a crisis, organic content consumption tends to increase, while media spend across various channels decreases. Marketers should anticipate budget cuts in paid social media content, print ads, physical events, email marketing, and physical ads. Despite lower purchasing activity, releasing engaging and valuable content can enhance brand awareness and trust, positioning businesses favorably for post-recovery sales.
Brand Awareness, Not Just Lead Generation:
Building brand associations during a recession can yield significant sales benefits during the recovery period. Businesses with longer sales funnels should prioritise long-term growth through brand building and top-of-the-funnel content. Pursuing short-term lead generation activities may be less effective when customers and prospects face budget cuts. Emphasising brand visibility, leveraging content marketing, SEO tactics, customer relationships, and co-marketing partnerships can help businesses weather the economic storm.
Prioritise Emotions Over Logic, But Be Distinctive:
During recessions, successful marketing campaigns often prioritize emotions over logic. Leading with empathy, humour, and humanity can resonate with audiences and evoke a positive response. However, it’s crucial to maintain brand distinctiveness. Communicating in a differentiated manner can help businesses stand out amidst the noise, fostering stronger connections with consumers.
Social Media Marketing Trends and Influencer Trends:
Social media continues to be a vital marketing channel, with platforms such as Facebook, Instagram, YouTube, Twitter, and TikTok leading the way. Marketers recognize Facebook’s high ROI, while TikTok’s short-form video content gains popularity. Tailoring content for each social media platform yields better results, with effective marketers 27% more likely to customise content. Influencer marketing has also surged, with macro- and micro-influencers proving most successful due to their lower costs and better audience trust.
Video Marketing Trends:
Video marketing continues to grow, with increased investments from businesses. Despite potential economic uncertainties, only 3% of companies plan to reduce their video budgets.
Conclusion:
In times of economic uncertainty, maintaining marketing efforts can prove beneficial for long-term success. By prioritizing brand visibility, leveraging organic content experiences, focusing on brand awareness, and embracing social media marketing and influencer trends, businesses can navigate the challenges and position themselves favourably for post-recovery growth. While budgets may be tight, strategic and innovative marketing approaches can yield significant returns on investment.
At Digital Marketing AOK, we understand the complexities of navigating the ever-changing world of digital marketing. Our team of experts is committed to helping businesses like yours thrive in this dynamic environment. Whether you need assistance with social media marketing, search engine optimization, content creation, or any other aspect of digital marketing, we’ve got you covered.
Sources: HubSpot, Ehrenberg Bass Institute
