Why should businesses continue to invest in digital marketing through a recession? Business owners are likely to cut down marketing expenditures during these tough times. However, reducing marketing spending is a counterproductive measure. Historically speaking, firms gain more from marketing efforts during recessions.
A widely referenced research by McGraw-Hill found that companies that increased their marketing spending during the 1980 recession, inflation rates were similar to today’s, experienced higher sales compared to businesses that stifled marketing investment.
In today’s digital age, business owners are grappling with the same dilemma. Reduce spending in the hopes that the economy would grow or raise the marketing budget to attract more customers.
The fact remains that recessions give businesses unprecedented opportunities to seize an unsaturated market. While your competitors may decide to cut down on their digital marketing investment, the field becomes less crowded and offers you a unique chance.
As a result, businesses may more readily increase their online visibility through search engine optimisation (SEO), improve the effectiveness of pay-per-click (PPC), and maximise their overall return on investment (ROI) for marketing initiatives.
Reasons to Continue Investing in Digital Marketing During a Recession
- Increased online visibility
As expected, cutting the marketing budget is often the first course of action for businesses during a recession. However, for businesses that continue to invest in digital marketing, the online space becomes less crowded and increases visibility for the remaining ventures. Additionally, the cost of online marketing decreases in a less competitive market.
- Organic growth through SEO
With search engine optimisation, SMEs may improve their online presence and stand out from their competitors. Businesses can generate more leads organically without necessarily spending on digital marketing during these tough moments.
- Content Marketing
During a period of ambiguity, content marketing can aid in fostering trust. By providing relatable material that resonates with the target market, digital marketing enables your brand to be in the conversation and at the front of people’s minds.
- Social Media
Social media has evolved from a platform to connect with colleagues and relatives to become a powerful tool for personal expression and corporate relations. Today, social media offers businesses unique channels to connect with audiences which could be instrumental during unprecedented times as evidenced during the Covid-19 pandemic.
- Growth of Ecommerce
Shoppers are consistently demanding online products and services which has triggered an exponential change in consumer shopping habits. Customers are leveraging the opportunities offered through technological advancements to make shopping and transactions more convenient which has resulted in a drastic growth of eCommerce. Digital marketing is critical in propelling businesses online and helping them in their e-commerce efforts.
Businesses of all sizes and types are experiencing the effects of the current economic downturn and many will change their marketing budgets to help make up for the decline in sales. While it is prudent to keep expenditures in check, businesses currently require digital marketing more than ever. Business executives with a keen eye will see this as a chance to grow their market share and position themselves for prosperity when the recession is over.
STS Global Media – Your Number One Digital Marketing Partner
STS Global Media is a trusted provider of digital marketing solutions spanning – paid social ads, paid search ads, search engine optimisation, graphic design, and digital strategy. STS Global Media allows your business to fully benefit from the advantages of digital marketing. Our expertise and experience in digital marketing allows us to provide you superior marketing solutions.
Contact STS Global Media for digital marketing solutions.