“Remember, your media spend directly buys future revenue. If you cut your spend, you are cutting future revenue.” – Janet Casey, President and Founder
According to the World Federation of Advertisers (WFA) and Ebiquity, 29% of the world’s largest advertisers plan to slash ad dollars in 2023. Cost-efficient media buying counts more than ever.
Cost-cutting may feel like a solution–but it comes with risks (i.e. decreased share of voice in the marketplace, brand awareness, leads, and ultimately ROI).
During these periods, many brands opt to reallocate their paid media dollars away from the top of the funnel to focus on bolstering their bottom line. Ignoring awareness efforts and shifting dollars to the bottom of the funnel, however, garners short-term gains that dry up fast.
Advertising budget reductions do not typically mean sales goals slow down. Companies often need to sell at the same rate or better to survive tumultuous times and land with financial stability. Ultimately, the most cost-efficient media agencies that prove they can do more with less will win for these clients in a big way.
The best way to survive and thrive is to remain focused on Return On Ad Spend (ROAS). Are your goals all about ROAS and tracking the customer journey? Tap into this 6-minute read to get the latest on paid media attribution!
With ROAS in mind, what can marketers do to recession-proof paid media campaigns?
“Remember, your media spend directly buys future revenue. If you cut your spend, you are cutting future revenue.” – Janet Casey, President and Founder
According to the World Federation of Advertisers (WFA) and Ebiquity, 29% of the world’s largest advertisers plan to slash ad dollars in 2023. Cost-efficient media buying counts more than ever.
Cost-cutting may feel like a solution–but it comes with risks (i.e. decreased share of voice in the marketplace, brand awareness, leads, and ultimately ROI). During these periods, many brands opt to reallocate their paid media dollars away from the top of the funnel to focus on bolstering their bottom line. Ignoring awareness efforts and shifting dollars to the bottom of the funnel, however, garners short-term gains that dry up fast.
Advertising budget reductions do not typically mean sales goals slow down. Companies often need to sell at the same rate or better to survive tumultuous times and land with financial stability. Ultimately, the most cost-efficient media agencies that prove they can do more with less will win for these clients in a big way.
The best way to survive and thrive is to remain focused on Return On Ad Spend (ROAS). Are your goals all about ROAS and tracking the customer journey? Tap into this 6-minute read to get the latest on paid media attribution!
With ROAS in mind, what can marketers do to recession-proof paid media campaigns?
How to Adapt Paid Media Campaigns While the Economy Changes
STEP 1: Hang in there. Don’t go dark on advertising if you can afford to. Pull back when necessary, but don’t be long forgotten when the market bounces back. Regaining share of voice and loyalty after being idle can take a long time and can decrease sales by up to 25%!
STEP 2: Know your data. Understanding your existing consumer data is critical as they move through the funnel toward conversions, especially in a privacy-centric world moving away from cookies. Outside of zero- and first-party data, industry-specific cost trends and benchmarks can help indicate what your baseline should be, especially in a down economy. In general, a smart data strategy saves time and money as it fosters more targeted, cost-efficient paid media campaigns by leveraging information that might otherwise go to waste or be under-utilized.
STEP 3: Make the most of AI and machine learning. Increasingly efficient ad targeting is your best friend for paid media execution during a recession. Ad-serving algorithms collect abundant amounts of data, analyze for top performance indicators, and maximize advertising results at the most efficient cost. Although machine learning is powerful, truly transformative campaign performance requires hands-on agencies who optimize campaigns daily, monitoring performance across media channels.
STEP 4: Pay special attention to the happiness of your consumers. They can make or break growth! A happy consumer is (ideally!) a returning consumer. Being sensitive to changes in the economy, while being realistic about how your brand fits into consumers’ potentially adjusted lifestyles, is key to maintaining brand integrity and brand preference. Meet your consumers where they are, considering where their heads and hearts might be alongside their current media consumption habits.
Now is the time to be resourceful and make the most of your media buying agency’s insights. The agencies who excel in cost-efficiencies can make paid media campaigns shine no matter the economic state.
When the economy is down, less advertisers are in market, allowing publishers to provide better incentives for the active advertisers. With less competition for share of voice, you can reach more consumers, at stronger frequencies and recall.
Sustainable, Successful Media Buying Is Possible in a Recession
With the right tools, media planners, and media buyers, you can survive an economic downturn and even experience impressive ROAS.
Need better media buying? Schedule a discovery call with our team today!
