The economy isn’t at its strongest this year, and it’s safe to say brands are feeling it.
Across all industries, there’s a feeling of unease as budgets are getting tighter and uncertainty is increasing.
In times like these, a knee-jerk reaction of many companies is to pull their marketing spend.
This is because they feel the money could be put towards more important things.
However, it’s in times of fiscal uncertainty like this that marketing is more important than ever.
With many competitors shying away from marketing spend, your brand has the perfect set-up to stand out from the crowd.
Why?
During periods of economic downturn, consumers instinctively spend with brands they know and trust.
And the most effective and efficient way to boost consumers confidence in your brand? Through your marketing strategy.
Increase Your Market Share of Voice:
Investing in your marketing allows you to push your brand to the forefront of your target audience. As a result, you can bolster trust with consumers.
This then means that when they are ready to spend more again, you’ll be their top choice.
If an increase in spend is not feasible, it’s crucial to at least maintain your brand’s marketing spend levels.
By doing so, you’ll grow your share of voice compared to competitors who may be showing a decrease in spend.
A study by McGraw-Hill Research showed that businesses maintaining or increasing marketing spend during the 1980s recession grew by 256%, compared to those decreasing or using more timid marketing tactics.
Eventually, a brand is going to swoop in and take the lead in the market during times of economic volatility. So why not do it first?
Benefit From Cheaper Costs:
When competitors lower their marketing spend, the market becomes less aggressive, producing better buying conditions for you to benefit from.
What does this mean financially? Your brand can benefit from heightened cost efficiencies when prices for ad space become lower.
For example, when advertising digitally on Facebook or Google, if there are fewer competitors bidding on the same ad slots, you’ll spend less per click.
With lowered costs, it means your budget will go further, and you can reach a wider audience at a lower cost.
In the long term, too, this means you’ll see a stronger ROI from your marketing budget than before.
Meet Audiences in New Spaces:
When the economy is tight, people’s spending habits will change.
Their priorities, interests, and allowance for luxuries will undoubtedly shift and consequently impact their day-to-day lives.
For brands, this is important to consider when planning your marketing strategy: why pay for cinema marketing for consumers who stay home to watch movies and save money?
To maintain relevance among your target market, you must adapt your marketing plan. Focus on meeting your consumers in the environments they now inhibit.
Not only does this ensure a more effective marketing mix for your brand, but it also allows for opportunities for cost efficiencies and ROI.
When there are times of economic uncertainty, people spend more time online to find information, help, or even entertainment.
So, for your brand, it’s important to shift marketing spend towards these places.
For instance, when users are doing research online or browsing, investing in SEO or Google ads will help your brand maintain a strong presence with them.
Similarly, when people go to social media for entertainment and social interactions, focusing marketing efforts here will maintain brand awareness and connect with your audience.
During economic turbulence, brands must recognise the importance of increasing, or at least maintaining, their marketing efforts.
There is an instinct for brands to react by tightening budgets, but it’s precisely in these moments that investing in marketing is crucial for several reasons.
By maintaining a presence in your target market’s mind through marketing, your brand will be able to increase its market share of voice. Through doing this, you can ensure you will remain visible and relevant in the minds of consumers.
Utilising marketing during economic downturns will also lead to cost efficiencies for your brand, enabling you to achieve impactful results with reduced expenditure.
Likewise, embracing marketing initiatives during turbulent times will give your brand the opportunity to expand its reach.
You can explore new spaces that your audience is engaging with and connect with them in innovative ways.
By doing this, you’ll benefit from a broadened reach as your audience grows in ways it wouldn’t have done with a limited budget.
In conclusion, embracing marketing strategically within an uncertain market will allow your brand to come out stronger, smarter, and more resilient than before.
Want to talk more about how marketing can help your business in the current economic landscape? We are here to help you adapt your strategy and maximise your results. Get in touch today by emailing us at hello@bulluk.com or contacting us here: bulluk.com/contact/
