According to many different guidelines, one’s marketing budget is determined by their average annual revenue, so what happens when this revenue decreases in size? With some businesses having to halt their operations and uncertain reports of the economic crisis that will follow the pandemic, a lot of business owners are questioning their current marketing budget. However, there are those who are using this period to increase their marketing spending or at least keep it at its current level. Is there really a reason for such behaviour and what would be the reasons for it? Let’s find out!
1. People consume more content
The first thing worth mentioning is the fact that people now have more free time to spend browsing the internet. So, due to the fact that they, for instance, spend more time on social media, it might be the right time to think about scaling your social media for better growth. The same goes for any other form of digital marketing. You see, the bigger the hunger for new content is, the more opportunities you will have to connect with your audience on a unique and meaningful level. Just bear in mind that your competitors will have the same idea, which is why you need to stand out. This simply cannot be done without a suitable investment.
2. The online businesses are seeing an increase in activity
Another thing worth mentioning is the fact that a lot of online businesses are seeing an increase in activity. Apps are getting a record number of downloads and streaming services are facing unprecedented traffic. The same goes for the entertainment industry. As for e-commerce, well, now that people are trying to avoid personal contact (which is quite a difficult thing to do in a crowded mall), home delivery and ordering online are becoming a preferred form of doing business. In other words, not all industries are on a downward spiral.
3. A new approach to old-school marketing
While it is true that some people spend less time outdoors, the truth is that this has an adverse effect that might not have been counted on by a lot of marketers. You see, due to the fact that they don’t spend as much time outdoors, people tend to focus on items that surround them and pay more attention to them. This means that making an investment in old-school promotional materials like construction banners
, makes perfect sense, even under these circumstances.
4. Staying competitive is more important than ever
Even in the worst of economic situations, not all businesses fail. So, which businesses are going to make it and which are going to desperately fail? It depends on several factors, one of which is the ability to adapt to ever-changing circumstances. Cutting your marketing spending certainly isn’t going to improve your odds at making it. Staying competitive is more important than ever and if you can’t increase the amount of money that you’re spending on marketing, you can at least try to be more efficient with your current budget.
Keep in mind that there is going to be both society and business after this pandemic. After all, we, as a species, have seen worse (much worse) in the past. This is why you need to ask a question of – what comes next? Sure, you may decide to take a break, however, will you be able to pick up just where you left off or will the customers you lose due to your marketing inactivity leave you for good? This is probably the question that you don’t want to risk trying to find out. Therefore, ensuring some sort of continuity, even in the moments of crisis, seems like the only sensible thing to do.