Making Marketing Lemonade Out of Economic Lemons

“The economy” seems to be all we hear about anymore—and the constant repetition of bad news doesn’t just make people panic, it makes companies panic too. They begin looking for ways to cut back, and typically one of the first cuts they tend to make is to the marketing budget.  And so begins a vicious cycle: the marketing budget gets cut so sales drop, as sales drop the marketing budget gets cut even further, and I think you can see where this can lead.

That’s why, before making any rash decisions, it’s important to stop and see the opportunities that challenging economic times can create.  Let’s take a look at them now:

Your competition is probably cutting their marketing budgets.

It’s true. Your competitors are probably having the same reaction to the economy that you (almost) had. It’s a perfect time to increase your share of voice online without having to increase your budget. This doesn’t happen very often, so take advantage of it while you can.

Oneline Ad Spending, Q208 vs. Q209

Advertising rates are dropping.

Since your competition has stopped advertising, media companies need to stimulate spending. What better way to do that than chop rates? There’s no better time than the present to start advertising. In fact, interactive advertising rates are down 23% this year due to the economy.

It’s a great time to go online!

Whether you already have an online presence or not, now is a great time to focus on it. According to STRATA’s quarterly survey, “Agencies are diverting dollars to advanced advertising or digital media, such as video on demand or interactive television, with 62.5 percent of respondents predicting their customers were either very likely or somewhat likely to fit digital or advanced advertising into their media plans.” Shifting “offline” dollars to online has become a broadening trend for good reason:

• It’s extremely efficient. Advertising online tends to cost a lot less than advertising on TV or in print, plus you can measure and optimize your campaigns “on the fly.”
• It’s highly customizable. Whether you need broad reach or very specific targeting, whether your budget is large or small, and whether you need to drive sales or just create awareness, there is an online program to meet your needs.
• You can target demographically and behaviorally, so you’re not just reaching people based on who they are but on the actions they actually take.
• Social media has made it even easier to expand your campaign’s reach at no additional cost. Create a “buzzworthy” campaign and seed it in a social media site to broaden your audience in a very efficient and effective way.
• Email can be free! If you already have a list, and you have something worth saying, then what are you waiting for?

You can leverage the shift in consumer behavior.

Consumers are being thriftier in their spending, so if you have an online marketing plan it’s a good idea to re-evaluate it now. Ask yourself:

• Are the web sites where you are advertising still the best places to be?
• Are your keywords still working?
• Is there a special offer or incentive you can provide to drive sales of your product?

Remember to focus on your current customers.

It’s a lot easier and less costly to communicate with an existing customer than to try to acquire a new one. Plus, your current customers are the ones who have gotten you to where you are today. Don’t lose sight of them.  In fact you may want to think about how to reward them to make sure you keep them as a customer through these difficult times.

You can be creative.

Think outside the box and come up with new ways to reach your customers more effectively. Put yourself in your customers’ shoes; are there marketing programs or messages you would be more likely to respond to now than in previous years? For example, should your message focus more now on the long-term value of your product or service so that your customers think of it more as an investment rather than a cost?

As you can see, there are many reasons why it’s more important now than ever before to stay focused on your marketing. With a little persistence, a little diligence, and perhaps a little patience, you can move your business forward, stay ahead of the competition, and enjoy the sweet taste of your marketing success.