Weathering the Storm: Key Digital Marketing Decisions During an Economic Downturn

Whatever you want to call what we’re currently experiencing economically–a slowdown, limbo, a soft landing, a recession, a downturn–there is definitely something in the air (see my previous post on navigating uncertainty). Whether or not you’re already seeing an impact on your business, many leaders are proactively tightening their budgets to survive and thrive during this time. Usually the first thing to go— the canary in the mine for recessions—is marketing spend. However, it is crucial to decide which digital marketing strategies to retain and which to cut during challenging economic times. You don’t want to make rash decisions that will not only leave dollars on the table during a slowdown, but that will leave you poorly positioned for when things inevitably pick up. Here are the digital marketing tactics you should and should not cut when facing an economic downturn.

Retain: Search Engine Optimization (SEO) and Branded Search

SEO is a critical long-term investment that should not be compromised during an economic downturn. SEO helps your website rank higher in search engine results, increasing organic traffic and generating leads. Consistent effort in optimizing your website's content, structure, and technical aspects will pay dividends over time. You also don’t want to cut paid branded Search campaigns, and if you can afford it, branded Shopping campaigns. This goes for Google, Amazon, and Bing. Not only will high-intent customers be less likely to find you now, reducing SEO and SEM may result in diminished visibility, making it harder to compete when the economy recovers.

Retain: Retargeting Ads

Retargeting ads allow you to reconnect with website visitors who have shown interest in your products or services but have not yet made a purchase. These ads work by displaying targeted advertisements as they browse other websites or social media platforms, reminding and encouraging them to return and complete their purchase. Retargeting ads, while typically lower-volume, usually have the highest ROI of any ads (except perhaps, search.) Keep these going no matter what; if you’re crunched, then reduce budgets but do not turn them off! 

Retain: Content Marketing

Content marketing is essential to establishing your brand's authority, building trust, and engaging with your target audience. Producing valuable, relevant, and high-quality content positions your business as a thought leader in your industry. Maintain a consistent content creation schedule during a downturn. Scaling back on content marketing could negatively impact your brand's visibility and lower the ROI of everything else you’re doing to attract and convert new customers.

Retain: Social Media Marketing

There’s no better (relatively free) strategy for your business to connect to your audience and drive engagement. Maintaining an active presence on social media helps you stay relevant and maintain a strong brand identity. Focus on building a community, sharing valuable content, and engaging with your audience. Do not stop posting and engaging with your followers. Just get scrappier and trim some of the paid elements to social media marketing (see below.)

Retain: Retention Marketing

While customer acquisition is important, getting repeat sales and new customer referrals from existing customers is vital for long-term success. Nurture relationships with current customers to encourage repeat purchases, increase customer loyalty, and generate valuable word-of-mouth referrals. Invest time in retention marketing strategies such as personalized email campaigns, loyalty programs, and exclusive offers for existing customers. By keeping your current customers engaged and satisfied, you not only secure a stable revenue stream but also build a strong foundation for future growth once the economic situation improves.

Cut: Non-Performing Ad Campaigns

While it is important to maintain a paid presence (see branded search and retargeting, above) it's equally vital to analyze the performance of your ad campaigns during an economic downturn. Assess the return on investment (ROI) of each campaign and identify those that are not generating at least positive ROAS (if not at least 2-3x ROAS in the case of a DTC ecomm business.) Redirect your budget towards campaigns that have proven to be effective in the past. Now is not the best time to allocate a meaty “test budget.” Stick to what has worked.

Cut: Frivolous Paid Partnerships

Assess the value of paid partnerships and collaborations. Evaluate the return on investment for each partnership and focus on those that are generating cheap traffic and/or low cost conversions. Avoid frivolous partnerships that, while buzzy, aren’t yet hitting the bottom line. Invest in collaborations that provide measurable value. Can you use the content in paid and organic? Has it generated leads and sales? Is this partner easy to work with? All questions to ask when deciding which to keep and which to cull.

Cut: Excessive Paid Prospecting Ad Campaigns

Consider allocating a portion of your budget towards alternative marketing strategies that provide a higher return on investment, such as content marketing or SEO. Rather than throwing spaghetti at the wall and spending time and money conceiving questionable prospecting campaigns (be they search, social, or other high reach/low attribution channels like CTV) double down on organic social then boost the successful posts and/or turn them into prospecting ads. 

During an economic downturn, making informed decisions about where to cut and where to invest in digital marketing is critical for long-term success. Retaining essential strategies like SEO and brand search, content marketing, social media, and retention marketing ensures your brand remains visible, relevant, and engaged with your audience. Meanwhile, cutting non-performing ad campaigns and frivolous partnerships can help you trim your marketing budget (without cutting off your marketing nose to spite your face!)  Make thoughtful decisions about digital marketing during challenging times, and position yourself for growth when the economic climate improves. Need help navigating these stormy seas? We’ve grown companies through fat times and lean, and maximized ROI through all economic cycles. Contact us to discuss your needs.