Social media marketing during an economic recession
Social media marketing isn’t just for the good times, as we’ll explain in this post. Even Forbes has suggested that when things get tough out there, your business can’t afford to shut down its digital marketing if it wants to survive. It’s scary where we’re at right now, but that doesn’t mean you should neglect your Facebook advertising campaign, let your Instagram ads drop, or call it quits on your snapchat ads.
We get it. With the global economy facing one of its greatest challenges to date due to COVID-19, most businesses might be preparing to tighten their belts and keep hold of as much cash as possible. We understand the temptation to batten down the hatches and try to weather the storm of the current economic downturn. But you could be making a huge mistake, and here’s why:
The benefits of digital marketing during an economic recession
Potentially reduced advertising costs
As other businesses drop their social media marketing campaigns in an attempt to save cash, this can make it cheaper for those that stick it out. This is largely down to a reduction in competition rather than any reflection on lower traffic volume. What this means is that you are more likely to get more visibility at a reduced cost using the exact same channels as before.
When you think about it in those terms, it’s actually a no-brainer. If you can spare the budget – keep your Facebook advertising, Instagram ads or Snapchat ads running. In fact, if you really want to saturate the market with your brand – increase your social media marketing spend.
Scoop a larger market share
If you actually stop to consider the position a lot of people are in due to COVID-19, you’ll realize you have a major advantage if you’re super visible on social media right now. With many countries in some form of lockdown, and most folks being told to stay at home – a lot more people are turning to digital channels to keep themselves occupied. Clearly this means that, sure, we might be entering into a scary economic recession, but people are using Facebook, Instagram and Snapchat more than ever to stay connected with friends and family.
With competition potentially reduced, if you’re putting in the dollars to get your advertisements seen on these channels – you’re going to see significantly more traffic and higher visibility for your business’ brand or product. We’re not just saying it either - Engadget reported a huge 20% increase in Snapchat users in April 2020. The opportunity for growth is real.
Solidify your brand
As we’ve already seen, you can really boost your digital marketing strategy if you put the investment into advertisements right now. Not only will doing this potentially cost you less and help you corner a larger share of the market due to decreased competition, but you will ultimately solidify your brand as a name that people know and trust.
Ever hear the saying: “out of sight, out of mind”? Well, the same can be said of consumers. None of us have much time to go looking for a new brand or product. Most of us prefer the convenience of a product that kind of falls in our laps at just the right moment. So, it stands to reason that if a brand or product goes quiet, even for a short time, the resulting loss of interest or trust from previous customers can be both long-lasting and profound.
While other businesses hunker down and let their brand or product voice disappear from social media, the truly savvy out there will know that this is the moment to make your mark. Not only that, but to announce to your target audiences that you’re still here, that COVID-19 hasn’t beaten you, and that you can always be relied on. It’s a seriously powerful marketing message to get out there when everything else is so uncertain.
Still not convinced?
Examples of businesses who killed it in an economic recession by advertising
Economic downturns don’t have to be a bad thing. In fact, some companies have experienced significant growth off the back of a recession. If the following list doesn’t inspire you, we don’t know what will!
Slammed by the dot-com bubble burst in the early 2000s, you’d think a relatively new tech company would be cautious during an economic downturn. But their ethos has always been to invest when things look bad. If you consider that they’re one of the most iconic brands of this generation, what works for them will probably work for you.
Go back a way, before Disney became the colossus it is now, and you’ll discover that they started up right as the Great Depression was getting into full swing. They kept things going and then released their first feature-length animated film (Snow White and the Seven Dwarfs in case you didn’t know) that would spark a fandom that has spanned decades. There is no doubt that some seriously clever advertising went into their success (and still does).
Tech giant Google timed its launch in 1998, right before a major economic recession. For some companies, that would have been a disaster. But Google managed to not only weather the storm but also grew to become a household name.
If you’re looking for ways to grow your business rather than watch it shrink and disappear during the COVID-19 crisis, investing in your digital marketing and social media marketing strategies can be the difference between success and failure. We can help. Start your free trial today or check out our case studies to learn more about what we can do for you.