The economy may already be in recession, but that doesn’t mean your brand should join it
Soaring inflation and serious talk of recession have a lot of organizations weighing things they need to have against things that are nice to have. In the needs column you have your people, your software, your office, your website — the essentials needed to keep your business running.
Then in the “nice” column there are the corporate retreats, the big catered lunches, the fitness incentive programs and all the perks in between. You might not be getting rid of them just yet, but they’re officially on notice.
But where does that leave your marketing? Does it make sense to advertise during a recession?
Continuing to invest in marketing during an economic downturn doesn’t just make sense — it’s vital to the continued health of your business, both during the downturn and the eventual recovery.
Marketing during a recession is just good business
Yes, you read that correctly. Let’s flash back to the seemingly simpler days of 1999 when the early 2000s recession was beginning to loom. As businesses began to assess expenses, researchers began studying the advertising data of more than 1,000 American and European firms, dividing their subjects into three camps:
- Companies who were decreasing their marketing spend
- Companies who were maintaining their current marketing spend
- Companies who increased their marketing spend
Once the economy began to recover, the companies who had decreased their marketing spending saw a 0.8% decrease in market share. Companies who had maintained their marketing spend saw a 0.6% increase in market share. Meanwhile, companies who had increased their pre-downturn budgets saw their market share grow by 4.3%.*
What marketers in category one failed to realize is that the needs their business addressed didn’t disappear when the economy went South — decisions just became more complicated. If even one of your competitors is in category two or three while you are ducking for cover, those competitors stand to gain new customers that could have been (or once were) yours.
Why marketing works in a down economy
We know as well as anybody that marketing is fundamentally different today than it was in 1999. That said, many of the reasons bullish marketers thrived then are even more applicable in the digital era. But before we dive deeper, let’s break down some of the reasons those bullish marketers stayed ahead.
- The power of familiarity
Don’t underestimate the power of your brand and its marketing to help people feel a sense of normalcy in chaotic times. Think of the comfort you get from a 24-hour diner’s bright neon sign shining through a heavy storm on the highway. It may feel like the apocalypse outside, but inside you know there’s warm coffee and a comfy booth to keep you safe. Optimistic, confident marketing from familiar faces during turbulent times can have a similar effect. - Uneven economic impacts
Even the worst economic downturns leave some people — and markets — nearly unscathed. If those in your target market find themselves with money to spend, why inadvertently signal that you’re not open for business? - Fostering loyalty
Hard times forge strong relationships, and brands who find ways to make people’s lives easier during tight economic conditions can find themselves with lifelong customers on the back end. Offering discounts and increasing value when others are raising prices and slashing marketing can pay dividends when recovery begins. - Conquesting your competition
It’s easier to be heard in a quiet room. When your competitors reduce their marketing in a bid to save money, they create new opportunities for you and your messaging to dominate the conversation.
Party like it’s 1999 (with 2022 tactics)
The study we referenced at the beginning of this article was conducted during a very different time for marketing. Though the economic anxieties may have been similar, the marketing landscape relied much more on traditional mass media, which can be difficult to track and affords little flexibility.
On the other hand, digital marketing methods including SEO, social media (paid and organic), paid search, content marketing and display advertising all allow you to direct your efforts where they make the biggest impact and make fast adjustments to ensure better returns.
Let’s break it down.
Overtake the lead(s) with SEO
Google’s algorithm strongly favors sites that regularly publish fresh, high-quality content. When high-ranking competitors take their foot off the gas, they start missing valuable opportunities to target high-value search trends. Sites that maintain a regular blog and consistent, strategic content updates can more easily overtake competitors on high-difficulty search queries, and stand a better chance at maintaining these gains once the bears decide they’re ready to resume marketing.
Spend more efficiently with targeted advertising
Paid search and social media allow you to target and reach specific audiences that are more likely to engage, convert and be profitable, all while controlling your costs. Paid search and social media also allow you to adjust and address rapidly changing market conditions and social climates without missing a beat.
Build rapport and delight your audience with organic content
When times are tough, people look for new, free sources of comfort, entertainment and information. In these times, well-developed brands with strategic, thoughtful approaches to content marketing gain new opportunities to engage and delight audiences who are eager to find something new to enjoy.
Best of all, an organic content strategy allows you to build authentic relationships based around your brand’s personality.
Continue Reading: See how we helped Thiessen Law Firm develop a beloved online presence
Nurture relationships and demonstrate value with email marketing
Even automated emails can deepen personal connections with your brand and generate conversions. Developing a strategic, persona-driven cadence ensures messages and offers reach your audience when they are most likely to buy.
Email marketing also gives you the opportunity to delight subscribers and add value to their lives through timely deals and updates that reflect their real-time needs and concerns.
Don’t ride out a recession alone
We deeply believe in the unique opportunities these economic conditions can afford us — we also recognize that the strain they cause is real. As prices on everything from gas to groceries continue to soar, we understand that the next several months may be lined with difficult choices.
That’s why we are committed to keeping our prices fixed through 2022.
Whether you already work with us or are looking to begin a new marketing partnership, Baal & Spots delivers thoughtful solutions tailored exactly to your brand and your business needs. And when times change and new needs emerge, we’re there to pivot right alongside you.
Don’t let the storm clouds obscure the opportunities that lie ahead — they may be a lot more attainable than they seem. And while needs and preferences will fluctuate with the news cycle, your customers aren’t going away — so why should your marketing?
When you’re ready to take the next step, we’re here and we’re ready to talk.
* Marketing During and After Recession, International Journal of Business and Social Science, Vol. 6, No. 9(1); September 2015