Economic uncertainty is like Superman’s kryptonite when it comes to marketing and advertising. A natural and understandable reaction during times of economic downturn is for companies to cut costs. Unfortunately, marketing, and in particular, advertising, is typically at the top of the food chain. Again, an understandable move, however, is this really the right strategy? For some markets, maybe, but for a majority, sustaining, and in some cases, increasing activity that drives direct revenue, is the best step forward to future proof a brand for what’s to come.
Here are 4 ways to leverage digital marketing and advertising to help secure financial positions during a possible economic crisis.
- Keep Those Key Revenue Drivers In Full Throttle
It’s a well-known fact that digital marketing is a key revenue driver. If you have to cut costs, prioritise and segment activity based on performance, and direct revenue generation. Look at metrics such as Revenue, Cost Per Acquisition (CPA), and Return On Ad Spend (ROAS). Which campaigns are generating the most, for the least amount of investment? Whilst you’re doing this analysis, make sure you also look at the audience type. During times of economic uncertainty, where attrition rates can increase, you want to make sure you continue to acquire new customers, which costs more.
Brand awareness campaigns and mass marketing are obviously very important. Digital performance relies on it. However, when budgets are cut, and you need to justify every penny you spend on marketing and advertising, allocating your budget where you directly make money might be your best option…
2. Be Loyal To Loyalty Programs & Campaigns
Do you have a dedicated loyalty program to thank and reward your customers? Does your digital advertising segment and communicate directly to audiences who have previously purchased from you? Do you actively obtain customer data for remarketing (and acquisition) purposes?
If you answered ‘no’ to any of the above, you’re missing a very real commercial opportunity. The most cost-effective way to increase revenue is to amplify remarketing activity – so the age-old saying that ‘it costs 5 times less to retain and convert current customers’ still runs true today.
With all this in mind, 1st party data should be seen as a valuable company asset that needs to be utilised. And, with Google’s recent announcement that cookie tracking will cease to exist in 24 months, it will become even more valuable in the months to come.
3. Take Advantage Of Reduced Competition
This may sound like we’re suggesting you capitalise on an economic downturn… which is exactly what we are suggesting. Lower competition in digital land means lower advertising costs. In an article published by Fobes, ‘When A Recession Comes, Don’t Stop Advertising’, alongside reduced cost, there’s also a reduction in ‘noise level’. Less noise means more opportunity to maximise impact… Makes sense to us!
The money saved on reduced competition could be put towards building your customer base with highly relevant, new customers. To make sure you generate a strong ROAS to keep the ‘powers that be’ happy, offer an incentive to purchase, and ideally to encourage increased average order values.
4. Align & Collaborate With Like-Minded Brands
As we’ve made very clear in this blog, audience data is worth its weight in gold. And, if you don’t have the budget to purchase 1st party data, a very clever, and cost-effective way of dramatically expanding your prospective audience, is to align with like-minded brands, and develop audience sharing agreements.
Develop a list of companies you work with, have a relationship with, or companies you’d like to approach. Make sure you keep audience relevance top of mind, as well as the feasibility of audience sharing. Facebook is the easiest way to share an audience, so start here and go from there!
Words by Angela Hampton, Founder & Managing Director