Keep Your Marketing Strong in Tough Economic Times with Insights on Consumer Behavior, Market Analysis, and Long-term Positioning
Economic downturns bring uncertainty and changes in user behavior that impact markets and forecasts. They also affect how resources are allocated to marketing activities. No two recessions are the same, so marketers face new challenges each time.
This article offers guidance for managing SEO campaigns and demonstrating their value during recessions or periods of market uncertainty when external factors significantly alter consumer behavior.
Doing Business During a Recession
During economic downtimes, consumers naturally reduce spending and prioritize more strictly. As sales decline, businesses often cut expenses, lower prices, and delay new investments. Unfortunately, marketing expenditures are often the first to be reduced, a strategy that should be avoided.
SEO and paid search are often viewed as independent channels, with SEO sometimes seen as dispensable. However, historical data shows that the entire U.S. ad market, including radio and magazines, faced declines during past recessions, while online channels were more resilient.
The Argument for Maintaining Marketing Spend
While it might seem prudent to cut costs during a recession, neglecting to support your brand and understanding your core customers’ evolving needs can jeopardize long-term performance. Organizations like the Institute of Practitioners in Advertising (IPA) advise against reducing marketing spend during these times.
Advertising spending growth is expected to continue, albeit at a slower rate. Various factors contribute to this, including market saturation, pricing pressures, and market consolidation.
Research from sources like the International Journal of Business and Social Science, Harvard Business Review, and the Economist highlight five key marketing objectives during a recession:
- Smarter spending and investment.
- Prioritizing customer retention.
- Leveraging competitors’ weaknesses.
- Monitoring market trends and adjusting spend based on segment behaviors.
- Maintaining current spending levels but spending more strategically.
How to Keep Your SEO Efforts Going During a Downturn
The general advice is not to reduce spending. However, businesses need to understand how their SEO spend impacts the bottom line, especially when defending retainer or contract renewals.
Looking back at the 2008 recession and the recent pandemic, many businesses successfully pivoted their messaging across digital marketing channels. These learnings can help you navigate economic downturns without pausing your SEO efforts.
Review Your TAM and Messaging
Your Total Addressable Market (TAM) represents the total number of potential users of your product or service. During a recession, you may need to pivot your messaging and value propositions based on your TAM.
Essential products, often price-sensitive during downturns, may require highlighting value propositions more clearly. For more financially stable consumers, continuing awareness campaigns is crucial.
Luxury products can be marketed as rewards, boosting morale during tough times. For postponable products, like magazine subscriptions, focus on being visible during the research phase to retain users. Expendable products, such as gardening services, may see a shift toward DIY solutions, presenting both challenges and opportunities.
Understanding Consumer Confidence
Review the confidence levels of consumers within your Serviceable Obtainable Market (SOM) and Serviceable Addressable Market (SAM). Metrics like the Michigan Consumer Sentiment Index (MCSI) and the Consumer Confidence Index (CCI) provide insights into consumer optimism.
Engage with your sales team to gather valuable insights into your customers’ frustrations, objections, and financial perspectives. These insights help tailor your marketing strategies even if you can’t create your own economic index.
Smarter Opportunity Analysis and Competitor Targeting
During a recession, focus on maintaining market position and leveraging competitors’ weaknesses. Produce content that highlights competitors’ shortcomings and showcases your strengths, creating a competitive advantage.
Positioning for Post-Recession
SEO is a long-term strategy. During economic downturns, balance short-term needs with long-term goals. Maintain visibility for top-of-vertical awareness and remain competitive for bottom-of-funnel, conversion-focused queries.
Maintaining SEO Momentum During Uncertain Economic Climates
Marketing during a recession is challenging, but optimizing your budget and being strategic about priorities is crucial. A recession can build customer loyalty and mental availability within your SAM and TAM. SEO can alleviate direct cost channels (such as paid) and provide long-term benefits and short-term stability.
Stay proactive, as search engines continually update. Competitors who cut back will suffer in the medium to long term, leading to higher costs and lost visibility in the future.