Why You Should Double Down on the Right Channels, Not 'Go Dark' in Times of Economic Uncertainty
With rising fuel costs, looming food shortage and a long-standing cost of living crisis, it’s understandable that businesses want to act with caution during difficult times. Straight off the back of COVID, and about 20 years after the GFC (for those that were operating in that period), we’re in yet another period of economic uncertainty. But time has shown that these volatile periods can be navigated and ‘going dark’ isn’t a failsafe method of ensuring safety and stability. In fact, it could lead to the opposite.
Key Takeaways
Don’t go dark when times are tough, but think and act strategically
Adapt to new consumer behaviours, or be outpaced by businesses that are
Consider your messaging and choose empathy-driven communication rather than hard-hitting sales
Build trust and loyalty, with a specific focus on nurturing your existing client database
Maintain Media Investment
While it’s a natural reaction to get cold feet during volatile times, your business can’t curl up and hope that the events will pass and leave you unscathed.
In theTradeDesk article, A guide to marketing with confidence in uncertain times, it’s stated that:
Brands that maintain / increase media investment when there’s an economic downturn can see both short-term ROI and long-term brand consideration gains.
60% of the brands that stop spend during an economic downturn saw brand use decrease 24% and brand image decrease 28%.
Disappearing and being fearful with your brand presence and marketing strategies can be a knee-jerk reaction that only increases the potential issues, without suppressing any of the risks. However, we recommend AB testing your marketing, drilling down on channels, reassessing your spend and upping the effectiveness of your creative to make sure you’re see in the dark.
Adjust Your Strategy
An honest assessment and adjustment of your marketing strategy is required during these times. You can’t assume that continuing the way you have in the past will result in the same successes that you previously enjoyed. So, it’s time to assess and adjust so you can position your business for success.
When things feel uncertain, there’s more room to stand out, but only if you play it smart. Instead of hitting pause on marketing, it’s about getting sharper and more creative with how you show up.
Competitors
Your competitors may teach you about the current climate even before it starts affecting your own enterprise. While it’s always vital to know how your competitors are performing and what target markets they are succeeding in, now is the time to know what’s happening in your own industry. If competitors are dropping or adding new products, moving overseas, targeting new markets or bolstering their Google ads spend, you can investigate what appears to be working and utilise some of this intel for your own decision making. Conversely, take note of what doesn’t appear to be producing gains and quickly move to another strategy that is relevant to the current economic situation.
To retain or grow your position, consider:
Brand identity – does it need to be sharpened?
Messaging– are you addressing the real pain points that customers are feeling in this moment?
Website– remove all friction so customers can feel confident navigating your site
Visual assets – are you tapping every opportunity to get your brand out there? Vehicles, uniforms, promotional products, brochures and all digital assets.
Those that adapted, stayed visible and invested strategically in marketing often emerged much stronger, while others lost momentum.
Lessons from Not Too Long Ago
It’s the time no one wants to remember, but for the purposes of this article, it’s important to look at how some businesses prospered during COVID.
Adapting to the stay at home directives, many businesses were built or gained vast new customer bases during the pandemic. Seeing a gap in the market or a change in customer behaviour can be an opportunity for your business.
Some of these include:
Fitness apps – to close the gap left by gyms that were shut down
Delivery services – keeping hospitality industries afloat during COVID, delivery services cemented their hold in the Australian market during this time
Online education – with a lot of time at home, courses and masterclasses could flourish
Streaming services – with movies rushed to streaming or premiering on streaming services, these platforms became the substitute for movie night
React to the Situation, But Don’t Get Overwhelmed By It
Stay true to your vision, lead with empathy, and don’t be afraid to move fast. Your understanding of the situation and the pains your customers are feeling could be an opportunity to expand or pivot.
Make decisions, tweak them when needed, and keep everyone in the loop. Businesses that adapt quickly and transparently are the ones that stay ahead during volatile moments in history.
“Brands that adapt by shifting their strategy, rather than pausing it, often emerge as leaders when economic conditions improve.”
Tuesday Creatives
Opportunities in Economic Uncertainty
Economic uncertainty isn’t always a setback; it’s a chance to build momentum. With competitors pulling back, you can capture more attention at a lower cost and grow your share of voice. By tightening your marketing funnel and leaning into first-party data, you can deliver more targeted, personalised campaigns that convert more effectively.
Concentrate on keeping agility across digital channels so you can launch, adjust or adapt quickly as conditions change. Consider value-led offers, such as bundles, trials or incentives, that attract and retain customers without eroding your brand. Consider loyalty programs and turn customers into advocates. Providing a consistent offering in return for spend is a smart way to invest in your customers and give back a little certainty when economic times are bleak.
Strategic Steps for Marketers
Re-evaluate: Look at your budgets through the lens of current economic data, instead of wishing they were still set in the past. Not being able to focus on the current dynamic does nothing for business resilience or growth.
Rise: In difficult economic times, price rises are inevitable. So, there’s no point delaying the obvious. Rip the band aid off and raise prices fast, not gradually or in several phases. This clearly sets expectations early and protects margins before it’s too late.
Retention: You may have heard that acquiring new customer is more expensive than re-engaging your existing database. So, turn your focus on retention and nurture your client database.
Reimage: When times get tough, think outside the box. There are always opportunities for those that look for them, so now is the time to innovate. Whether it’s trying out new marketing platforms, reworking your messaging, trying a new tactic or developing a new line of products, innovation can often provide growth if you know what section of your business to focus on and develop.
Reinvest: Get Lean and cut "dumb" spend. Assess and revaluate your marketing and ad spend in the current economic climate. Be brutal and pivot to reinvesting budget it into high-performing channels.
Refine: Strengthening your content is a cost-effective way to optimise your resources, with a focus on SEO, AI and updated messaging. Treat your content like a garden, and tend to it. In tough environments, nurturing your content is a relatively fast and affordable marketing hack that returns results quickly.
Keep the Light On
Turn to the team at Tuesday Creatives to keep your business visible and relevant. We work with SMEs offering a full suite of marketing services including brand strategy,brand identity, content creation, websites, social and paid media. We’ll turn the light on by creating brand equity, so you can maintain momentum regardless of the current economic environment.
