A recession can be one of the most difficult times to run a business, and it’s important to consider all your options when you’re trying to cut costs and reduce risk. Unfortunately, making the decision to reduce digital marketing is sometimes the easiest decision to make in tough economic times, but that can be one of the worst choices you can make for your business if you don’t approach it carefully. This guide will help you understand the risks of reducing digital marketing Adelaide in a recession so you can take action today to minimize those risks and prepare yourself for better results tomorrow.
Do what others don’t
There’s no such thing as a recession-proof business model. But that doesn’t mean your digital marketing should go on pause during tough economic times. In fact, there are several good reasons to increase your digital presence in an economic downturn. When other businesses are pulling back, you can leverage digital marketing efforts to create new opportunities and connections that help people find your brand—and eventually, turn those people into paying customers. Why? Because many consumers use search engines and social media to find out what their friends think about local products and services before making purchasing decisions.
Understand the risks involved
Adopting digital marketing strategies can significantly help your business as you look to reduce costs and drive sales, but they aren’t without risks. When you hire an online marketing agency, it is important to understand these risks and be clear about what you hope to achieve. Make sure that your contract states clearly who is responsible for what can help avoid disaster if things don’t go according to plan. For example, if sales drop following your campaign, who should take responsibility?
Know where you can reduce your costs
In tough economic times, companies often look to reduce their costs and advertising is a popular target. However, by cutting back on digital marketing during hard times, businesses are making themselves more vulnerable. For instance, businesses might scale back their efforts to attract new customers via email marketing or social media campaigns. However, without an active outreach campaign running, it’s more likely that potential customers will turn to your competitors instead. As digital marketing becomes increasingly important in today’s business environment, companies need to be strategic about how they allocate their resources when operating in difficult economic conditions.
Consider different ways of reducing costs
Keeping up digital marketing efforts during tough economic times can help keep your business’s name top of mind. However, businesses often see digital marketing as an easy cost to cut when times get tough. This can actually be detrimental to your company, as many consumers look online before making purchases. If you lose visibility during these important shopping periods, you may end up losing sales opportunities. Instead of cutting digital marketing costs when money is tight, consider other ways to reduce costs within your budget. Look into leveraging free or low-cost social media channels and Google products like Google Posts and Google Ads. If you’re open about your financial situation with clients, they may even offer tips on how you can save money without losing brand visibility.
Always look to improve your ROI
During recessions, many businesses cut back on marketing. It’s understandable – why spend money advertising when consumers are cutting back on spending? The problem is that digital marketing Adelaide offers an incredible ROI: By targeting potential customers and nurturing relationships with them, you can position your business to be one they turn to when they want or need your products or services. So, by reducing your digital marketing during tough economic times, you’re not only cutting off your main route to new leads but also (potentially) giving up a huge opportunity to sell more during good times.
Look at new growth opportunities
When consumers stop spending and industries slow down, it’s tempting to pull back on digital marketing. Why invest more money and time into marketing activities that aren’t producing results? The problem is, that you may actually be hurting your company by reducing digital marketing efforts at a time when other brands are continuing to advertise and drive new customers to their websites. In fact, some experts say that cutting back on digital marketing during an economic downturn can potentially increase your risk of falling behind competitors or losing existing customers as they move on from one business or product to another. Instead, consider approaching digital marketing as a strategy for new growth opportunities rather than purely as an expenditure.
