5 Reasons to Continue Marketing in an Economic Downturn
It feels like the U.S. has been teetering on the edge of a recession for years. Some claim we are already in one, while others argue that we haven’t been hit yet. A recession is characterized by high levels of unemployment, rampant inflation, losses to GDP and stagnant wage growth. It remains to be seen if we will enter a recession by definition, but businesses can feel the effects of an economic downturn without the economy officially meeting each of the indicators.
With worries about financial security, some businesses may consider pulling back on marketing spend. However, putting your foot on the brake isn’t always the best option.
Here are five reasons to continue—or even ramp up—marketing efforts even when the economy is struggling:
1. Cutting costs results in long-term loss
While brands may see short-term savings from slashing their marketing budgets, it can result in long-term losses. Without marketing, the brand isn’t being promoted. There’s no connection with the audience and even loyal customers might stray. This will result in lower revenue overall and could put the business in danger.
2. Remain relevant to consumers
Keeping up with content marketing initiatives will help brands stay relevant to customers. In a time of uncertainty, consumers look to brands they can trust. There’s an advantage to being top-of-mind when purchase need arises.
3. Fill a spot previously held by competitors
It’s likely that other brands will have the same idea and cut marketing dollars. That not only leaves their advertising spots open (possibly for a lower rate), but your brand could also fill the need of a customer by reaching a broader audience once held by your competitors. Particularly when it comes to bidding system-based pay-per-click (PPC) advertising, less competition means lower rates and a higher chance your brand will be served at the top of search results.
4. Easier to cut through the noise
Depending on your business vertical, competition can be fierce. If others are cutting their marketing budgets, there will be less content from them online. Even if your brand maintains the same level of marketing, it will have a larger impact because it will be able to stand out in a less crowded landscape.
5. It’s still possible to grow your business
When you hear of an impending recession, you might automatically assume that means lower profits. This doesn’t have to be the case. You can grow your business even in an economic downturn. The key is to figure out what pain point you solve for the consumer. Then, develop marketing that is clear and communicates the benefits of choosing your brand. During a recession, it’s important to build value in your product so that consumers feel confident in spending their money with you. With the right strategy and messaging, it is possible to build your business and grow your consumer base during a recession.
Keep a presence
It’s understandable to be wary of an economic downturn, but by moving forward with recession-sensitive marketing, you can prevent long-term losses, remain relevant, stand out from the competition and even attract new customers to grow your business.