Let’s start by addressing the elephant in the room. We’re all thinking it: of course, a marketing agency is going to recommend you put marketing above all else.
And at the end of the day? You have to consider your own priorities and financial situation.
Financial concerns ebb and flow throughout the lifespan of your business. It’s not an experience that’s exclusive to big economic events.
We know businesses are especially feeling the pinch right now. Overheads are growing, and there’s a real sentiment in the business community that people aren’t spending.
We’re not economists, so we won’t pretend to be. But, the theory basically goes: in recessions, economic downturns, or when an individual is strapped for cash, they spend more on small luxury items. So, they might not be able to afford that luxe European holiday or a new car, but they can afford a new lipstick.
The truth is, yeah, people are tight for cash. That doesn’t mean they’re not spending, though.
We know that when businesses are feeling the pinch, marketing can kind of feel like that European summer dream or the new SUV — a cost that doesn’t make sense right now.
But, more millionaires are made in recessions. It’s a bit rough, but it’s true. While we’re not in a recession, and the economy is certainly still moving, this is a time to be strategic with your budget, and by investing in marketing now, you can turn a not-so-ideal circumstance into a real opportunity.
And looking back on the pandemic, we know this is true. We saw countless examples of businesses flourishing and thriving throughout COVID-19, and these businesses took serious strides in their industries.
This is the time to beat out your competitors 🥊
Let’s rewind to the 1920s. Yes, none of us were there but stay with us because the story is super relevant, even here, 100 years on.
Ever heard of the cereal Post? What about Kellogg’s? Well…
During the 18-month recession of the 1920s, Post put a stop to its marketing. Kellogg’s didn’t, though. They doubled down, launching Rice Krispies and ramping up that advertising budget.
The result? Kellogg’s saw a 30% profit surge and cemented their position as a market leader 💪
And today? Well, we all know of Kellogg’s. Post, on the other hand…
The same thing happened in the 2008 recession — Burger King backed down and McDonald’s charged ahead. They nabbed a sales increase of 4.3%.
What we’re saying? Basically, tough times are a time to take advantage of. They’re the perfect stage to outshine your competition.
When the going gets tough, other businesses are going to fold. It’s your opportunity to cut through the noise and beat your competition. When the sun comes back out, and your competition comes back out to play, you’ll already be miles ahead of them.
Let’s talk about the compounding effects of marketing 💰
You know when you roll a snowball, the more you roll, the bigger it gets? Yeah, we know, we’re in Queensland and there’s a good chance you actually don’t. But trust us, it’s a thing.
That’s how marketing works. It’s all about the compound effect — each effort builds on the previous one.
Let’s break this down.
When you consistently engage in marketing, every ad, every social media post, every blog — it all adds up. Each element may seem small on its own, but together? They make a big impact.
In fact, we’ve written a whole case study about the snowball effect of SEO.
SEO is one thing. Pausing your SEO campaign doesn’t pause your SEO results — often it sends them back and can almost work to reverse any success you’ve seen so far.
A seasonal change, sure. A new promotion? Absolutely. A pause while you have leads coming out the wazoo? Heck yeah.
Pausing your ads or marketing because you’re worried about your budget? Not so fast.
Marketing generates revenue. Pausing your campaign generates… the opposite of revenue.
It sounds obvious, but it isn’t. When businesses are feeling the pinch, an instinctual reaction can be to lose marketing first. But marketing isn’t a frivolous expense.
There’s one simple reason we recommend you don’t cull your marketing. It generates revenue. If your marketing delivers you leads that you can translate into revenue, then financially speaking, marketing should stay.
Let’s take a look at the past 📚
The good news is that we’re not the first to go through an economic downturn. Recessions have happened throughout history — in Australia alone, we’ve been through a few: in the ‘70s, ‘80s, and ‘90s.
There’s a wealth of knowledge to be found in past recessions, business models, and the recovery theories found along the way. These are ideal for business owners who’re looking for innovative ways to weather the storm.
There’s plenty of history to look over to gain insight into how businesses can capitalise on economic falls.
Feeling the pinch? Let’s talk about it 💚
We know some businesses’ budgets are feeling a bit tight right now. Rest assured, people are still spending, your business can continue to grow and thrive, and the earth will keep on spinning 🌏
If you’re a current Excite Media client and your business is starting to feel the pinch — have a chat with your account manager. We’re here to work with you to get results from marketing. Let’s talk about it. We can always pivot and adapt.