You’ve heard the predictions: inflation and rising interest rates are cooking up a stout recession. While everyone attempts to read the signs and assess what’s coming, there’s a bigger reason to think a recession might be in the near future. The economy is cyclical. There’s always a recession coming.
Even if one isn’t immediately on the horizon, it’s reasonable to think that it’s never too far off. And so it makes sense to think about how your business should respond when it happens. Should you cut your marketing budget to ride out a recession?
There are a few good reasons why reducing your marketing investment not only won’t save you money but may cost a lot more in the long run:
Snatch Up That Market Share
You’ve heard investors like the iconic Warren Buffet advise that when everyone else is running away, that’s your time to advance.
The same is true with your marketing investment. Let everyone else slash their marketing budgets, while you stick around to collect up the customers they’ve abandoned. You gain market share for a lot less effort than when you’re competing with all the noise of a full industry.
Make the Most of Your Ad Spend
Likewise, you may be able to leverage long-term deals and enjoy a better cost-per-lead because so many companies are pulling back that you’re able to secure better rates.
This also translates to search engine optimization. It may be easier to bump up your rankings when other companies aren’t pushing as hard to get new content out there, optimize their keywords and engage in SEO best practices.
Save in the Long Run
When you decrease your marketing budget, you often take the biggest hit in areas like brand awareness, which is hard to quantify but undeniably important in the buyer’s journey. You could spend years making up the ground you lose by reducing your presence in social media.
Use it as a Differentiator
While other companies slink off to count their shrinking stack of dollars, you’re a positive voice in your market. You’re looking ahead, not wallowing in a recession. Let other companies be the Eeyore of your industry.
If your leadership is determined to make cuts, don’t worry. This is a great time to focus in on the math of marketing and determine where your brand does best. Maybe you’ve been investing a lot in email marketing, but you find that it’s your weekly how-to videos that tend to generate the most traffic on your website. Take some time to evaluate your most effective marketing and focus your energy there.
Marketing is particularly cost-effective with automation. Contact us at DirectMail.io to learn about our all-in-one automated marketing platform.