It has maybe never been a more confusing time to be a digital marketer. Between dealing with the ongoing ramifications of COVID, conflicting signals on customers' buying behaviors, and the looming potential of an economic recession - the kinetic nature of the consumer landscape has never felt more fraught.
The most typical response to uncertainty like this, especially economic, by marketers is to cut back on their spend. I think what recessions past and even the recent market shock event at the start of the pandemic in 2020 have shown is that this is a mistake. And this is supported by research by Analytic Partners in their note from August 2020: "Marketers who cut spend risk losing 15% of their revenue during a recession". Research like this illustrates that when marketers cut back, they risk losing significant and outsized share of their business to competitors in their industry who choose to actually lean in.
I think the dynamics that are created during times like this that create opportunity for marketers are the following:
1) Reduced ad costs as overall advertiser demand decreases - creating an incredibly favorable ads ecosystem and market for those businesses choosing to continue to engage their prospective customers through marketing activities.
2) A unique opportunity to go back to the basics of brand messaging to communicate clearly what brands stand for. I believe what we saw since 2020 was a clear shift, more obvious than during any other recent year, to marketers winning on consistent and clear brand values that resonate with their customers. Those that did not do this or stood by values that were not in line with customer expectations - were the big losers during this time.
https://analyticpartners.com/news-blog/2022/08/report-cutting-spend-in-recession-risks-loss/
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