You’d have to be living under a rock to dodge 2023’s news cycle and headlines of imminent recession, soaring interest rates, and long-term cost of living crisis.

Last year’s geopolitical events have triggered soaring prices for consumers and businesses, only adding to the existing financial strain of supply chain disruption and global skills gaps. In bracing for the impact this year, over half of business leaders have made efforts to reduce corporate spending.

Unfortunately, marketing budgets are typically one of the first to be slashed when times get tough.

WARC research predicts a slowdown in marketing spend (2.6% in 2023 compared to 8.3% in 2022) and, with this potential new reality just around the corner, practitioners and partners will remain under scrutiny. While reducing marketing budgets during a recession may seem like a failsafe way to scale back spending, it also makes it more difficult to return to business growth. Now is not the time to disappearing from in front of your customers and give those that remain in the public eye an upper hand. In fact, companies that increase spending during a recession can see a 4.3% increase in profits
compared to those that cut budgets.

That doesn’t mean marketing should be business as usual. During an economic downturn, marketers should be particularly vigilant with their spending, exploring new routes to their business goals that deliver more efficiency. This way, businesses and brands can ensure they’re not on the back foot once the economy starts to recover.

The importance of flexibility

In an unstable economic environment, flexibility, agility, and speed in marketing become crucial. Particularly when it comes to shifting plans from yearly or quarterly to monthly, weekly, or even real-time models, companies should stay lean and nimble.

This means having a keen understanding of all online and offline channels used in marketing campaigns, along with how they coexist, how they are evolving day-to-day, and any new appropriate apertures that might pop up. Businesses should ensure that any wider societal or financial changes are reflected almost immediately in digital marketing efforts and ROI is
measured quickly.

By adopting investment fluidity, businesses can follow demand more effectively, whether it be across channels or audiences. By ensuring they have the digital marketing budget to capitalise on opportunities if and when they arise, rather than sticking to a pre-agreed investment plan, marketers can deliver for key audiences and the business’ goals.

Exploring new platforms

The introduction and growth of new social platforms will continue in 2023 and leveraging the power of these channels can give digital marketing campaigns a competitive edge. After all, social media marketing is largely far more cost-effective, targeted, and dynamic than traditional media.

From growing apps like TikTok and BeReal to trends like the metaverse and AI, embracing new avenues for reaching customers and, above all, getting creative with content can drive a hugely successful advertising presence. Turning customer insights into personalised experiences across the digital channels they use most is the key to remaining relevant in
marketing, and driving ROI.

Software investment

Marketing in a recession hinges on making what you’ve got go further, and there’s no better way to optimise process than investing in the right automation and management tools, particularly software that streamlines campaign management and c reative production.

As well as minimising time spent by human marketers, software can be used to analyse data and give businesses a better understanding of the effectiveness of media spend, creative, and existing marketing tools. Not only can software help marketers respond to customer insights faster, but it can also reduce marketing costs wasted to poor targeting.

Smart positioning

Above all, real-time marketing should enable brands to stay close and relate to the customer in times of financial hardship. An aggressive and inhuman approach to marketing can be insensitive when customers are struggling financially, so leading with empathy in messaging, product positioning, and targeting is crucial. Taking an authentic approach and
avoiding condescending language will ensure that brands can continue to make connections with customers in times of adversity.

While economic turbulence can be frightening for businesses, companies cannot lose sight of their long-term marketing goals. By better understanding customer challenges, finding authentic yet innovative ways to reach prospects and, above all, remaining proactive and flexible in uncertain times, marketers can survive, or even thrive, through any recession.