Advertising During a Recession
Recent reports show over half of businesses are predicting a market recession in the next 12 months, resulting in many of those brands planning to drastically cut marketing budgets in fear of a decrease in profits. While holding back on marketing spending seems natural and rational, this may be the most critical time to hone in on your marketing strategy to make the best use of every dollar in your budget. Investing in your advertising during a recession is the best way to plan for long-term success, lessening the impact of a downturn and maximizing the effects of that spending when the recession is over.
Advertising tactics aren’t necessarily the same during a recession, however. But with careful planning and market research, it’s possible to use your marketing budget effectively. Here are some of our best tips on advertising during a recession:
Streamline Products. Look at your products and services and consider cutting the ones that don’t have long-term survival. You’ll want to prioritize the offerings that may decline yet stabilize after the recession and capitalize on the ones that will thrive during and after the recession. Determining which products and services stand the best chance of survival will help you maximize profits while cutting costs on the ones unlikely to bring you capital in the long term.
Focus On Current Customers. It may be tempting to try innovative marketing strategies to attract new clientele. However, the best thing to do is prioritize your current loyal client base. Though bringing in new customers during a recession will bring you profits in the short term, this audience is likely to stray away when the recession is over. Additionally, turning your attention to new clients can alienate your current audience. Prioritizing your existing audience will bring you stable clients during and after the recession.
Stay True to Your Brand. Like our last point, remember to stay true to your brand’s values and public image. Overhauling your brand will also alienate your clientele, leading them to other businesses in your industry. Remind your audience why your brand matters and connect with consumers to help them feel more tied to your business.
Balance Your Budget. If you need to cut your budget, then make sure you balance it out and decrease market dollars in the places it matters. For example, cutting your media budget may seem easy, but reducing your media presence can lead to a considerable loss in sales volume. Likewise, offering promotions and sales may look like a surefire way to bring more customers, but if you offer them too much, consumers may come accustomed to only buying when there’s a sale, decreasing your overall profits. Instead, use data to look at your marketing budget and see which avenues are most successful so you can capitalize on those strategies and cut the ones that aren’t as profitable.
Trust Mavrik Media Group to take your business to the next level! We offer various services, including website development, social media, brand design, video production, and more. We believe in advertising and making intelligent, educated, experience-based, data-driven decisions to spend your marketing dollars effectively. Visit our website to learn more, or schedule a consultation today!