Many economic analysts believe that the negative economic impact caused by the COVID-19 health crisis will be felt for years to come. As an economic recession looms, many business owners are looking for ways to trim the fat from their operation. One of the first things some business owners cut during a recession is their marketing budget. In the recession of 2008, business owners cut their online marketing spending by nearly 4%. Overall ad spending fell by nearly 13% in this time period.
If you ask any of the business owners that cut their ad spending during the “Great Recession” of 2018, they would probably express some regret. Making rash decisions like severely cutting your marketing budget leads to lots of losses over time. Ideally, you want to keep marketing to consumers throughout this crisis due to the long-term benefits this advertising consistency it will provide.
In this article, we will explore the reasoning behind expanding your marketing budget during a recession.
1. Deep Marketing Cuts Equal Long-Term Losses
Most consumers love the feeling of familiarity when it comes to the businesses they use online. Creating this sense of familiarity and trust will require constant marketing changes and optimizations. If you think a recession is soon to hit the United States, the worst thing you can do is cut back on the amount of digital content your company puts out. Doing this will create an environment where a competitor with a better marketing budget and strategy can swoop in and steal your customers.
Rather than dropping off of the face of the digital landscape during a recession, you need to work harder to expand your operation. This expansion is only possible if you post relevant and consistent content throughout an economic downturn. The content you post during these trying financial times will set you up for success when the economy gets back on track.
2. A Recession Can Make Paid Search Marketing More Affordable
During a recession, many businesses focus less on paid marketing and more on optimization techniques to generate more organic website traffic. Instead of following this trend, you need to invest more in your paid search efforts. In most cases, the search term bidding price on AdWords will be much lower during a recession.
This is due in part to the fact that many businesses aren’t investing in paid search during an economic downturn. Using this to your advantage is crucial when trying to increase the number of leads your paid search efforts generate.
3. Consumers Want New Content
Modern consumers are passionate about using the Internet to expand their knowledge. This is why consumers generally use online businesses that have tons of useful blogs and videos on their website. If your content production dries up during a recession, your customers may start to get bored with the old blogs or videos on your website.
Failing to provide your audience with new and relevant content on a regular basis is a recipe for disaster. The last thing you want is to drive loyal customers to a competitor with this marketing mistake, which is why you need to continue your marketing efforts during a recession.
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By, Peter Roesler, President of Small Business SEO. 25+ years in marketing! Yippee.
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