Investors check their stocks with trepidation every morning. Millennials are waiting with bated breath for the housing market to crash. And marketers are watching budgets while we all wait for a possible recession. The future may seem confusing and worrisome, but now is not the time to let customers’ fears stop them from advertising. You have to help them make the best advertising choices for their organization, now more than ever. It’s time to plan some effective advertising strategies.
At this point, there is no evidence that the economic downturn will reverse recession. Here are the facts that A report from Digiday:
- Global growth forecast is 2.9% (down from 5.7% in 2021)
- Growth is expected to pick up slightly to 3% in 2023.
- Global ad spending is estimated to grow by 8% (down just 1.9% from the original forecast)
- In North America in particular, ad spending will increase by 12%
Not too mind-blowing when you put it that way, right? “Few marketers are at the cutting edge of media,” reports Digiday. “Instead, they keep as much media as they can. The heads of the four largest agency holding companies – WPP, Omnicom, Publicis and IPG – made the announcement during the recent earnings window. Senior marketers seem to have one eye on the opportunity to spend more during what could be a crucial holiday season.” But it can still be hard for people not to worry in light of all the news and the desire to participate in more effective advertising.
The second half of 2022
Digiday says agencies should expect marketers to be more cautious and practice effective advertising as the year progresses. In the article, Google and Snapchat are named as companies that are preparing for lower profits in the second half. “I expect those numbers to change,” says Digiday, “especially as the privacy narrative continues to shape how and where marketers spend their dollars online.”
What you and your customers need to do
People prepare for the worst, but that doesn’t always mean shutting down marketing budgets. Instead, to quote Neil Barry, co-founder and CEO of TwentyFirstCenturyBrand, you should ask your customers the following questions:
- “Is your value proposition still relevant to heightened emotional needs and financial pressures?”
- “Does your purpose still play an additional role in culture?”
If the answers are yes, your client won’t have to worry as much during an economic downturn as others. If the answers are no, then it’s time to rethink their value and purpose, and how the company presents both.
Practice effective advertising
The key to effective advertising is knowing which types of advertising media will drive the highest percentage of your client’s target audience to action. If you and they aren’t sure what types of media these are, it’s time to turn to data. And if you don’t have it handy, don’t worry. Check your target audience profile on AudienceSCAN on AdMall by SalesFuel. There, you’ll be able to identify the types of advertising media that led the most consumers in this group to take action over the past year. Your client can then focus their advertising funds on these types of ads.
If your client answered no to any of the above questions, it may be time to consider creating one longer content to add to their marketing strategy. Blogs, white papers, white papers, etc. are low-cost, effective advertising media that provide customers with information about values, culture, vision, etc. All of these can help potential customers choose your client’s products and services over what their competitors offer.
Photo by Eliza Ventur
Rachel is a research analyst specializing in audience analysis at SalesFuel. She also helps maintain key accounts and cooperative intelligence databases. As a holder of a BA in English from The Ohio State University, Rachel assists the rest of the SalesFuel team with their writing needs.