As there is more chatter about a recession, businesses begin to structure their marketing strategies to spend more efficiently. One of the first places companies look to cut spending from is marketing. Here, you will find key arguments that will prepare you to explain why your brand should continue investing in performance marketing. Maintaining a strong presence for your business and diversifying your marketing channels can bring more benefits than drawbacks. While it may seem like a popular idea to reduce marketing costs, this could be detrimental to the business in the long term.
Continuing to invest in data driven campaigns during a recession is highly important for a company’s financial growth. Although there is a mainstream opinion of pulling back on marketing spend, continuing your marketing investment will keep your products in the spotlight, which will also lead to long-term growth and profits. Many businesses dropped marketing during the pandemic and ended up with less visibility. In a recent Nielsen report, on average, “it can take at least three to five years for a brand to recover lost equity as a result of halted advertising.” Maintaining a consistent presence with your customers will not only gain their trust but also create a long-term advantage.
Diversifying your marketing budget during a recession holds the same importance during a stable economy to increase profits. Whether it is investing in social media or search, reaching new audiences will eventually be significant in the long run to boost revenue. According to a McGraw-Hill Research Study that sampled 600 companies, those who decided to continue advertising aggressively leading up to a recession had sales 256% higher than those that stopped. You will not only stand out amongst your competitors, but also your customers will have a greater retention rate. Ad.net will help with adding greater value, by diversifying your customer acquisition channels and reaching new audiences outside Google and Bing.
It is always good to prepare for uncertainty in our economy, especially if the solution can help to double your ROI. When considering budget constraints, running a campaign where Return on Ad Spend is the goal, can help justify why budgets shouldn’t be cut, regardless of the macroeconomic conditions. Ad.net aims to double your ROAS and leave you easily able to justify your campaign investment in your next budget request. Reach out to learn more about Ad.net’s search and social products and help grow revenue in anticipation of a recession.