In recessionary times, where cost of living is increasing and disposable income is losing its purchasing power, consumers are re-evaluating their buying habits. A recent study from YouGov found that 1 in 5 Britons say they have had to cut spending on essential food items due to the current economic climate. If “essential food items” are facing a cut then it would not be unreasonable to assume that other non essential and luxury items are facing a bigger cut.
This is a threat for established brands, as they need to secure their market position and share of voice, while also presenting an opportunity to challenger brands to win new customers. Companies are under increasing pressure to limit the impact of inflation while keeping the cost of doing business as low as possible. Recruitment, Travel, Marketing budgets tend to be first in line for cuts and cost savings, however marketing is always looked at as an immediate substantial cost saving. But, while cutting back on marketing and advertising may save some money in the short-term, it can actually end up costing companies more in the long run.
When the economy tanked in 2008, many businesses were left wondering whether or not to trust it again. Advertising expenditure dropped by 13% as a result. However, statistics showed that companies and organisations who maintained their marketing output were 3.5 times more visible. It is said that “when times are good you should advertise, when times are bad you should advertise”. If there were ever a time to consider the importance of your marketing strategy, it would be in our current economic climate. With inflation on the rise and a recession looming, many brands are feeling both the pinch and a pressure to make cuts in certain areas of their business. But if there’s one thing that shouldn’t be slashed from your budgets, it’s advertising.
Businesses still need to push forward and hit targets in these tough times – it’s easy to fall into survival mode to ride out the uncertainty, but data from previous recessions is conclusive: businesses that reduce ad spend to save money amidst a recession struggle harder on the other side. On the other hand, a successful advertising campaign can help your business thrive. After all, 50% of all the Fortune 500 companies were created during either recession or economic crises. So maybe now is the best time to get your voice out there.
Simply downsizing and doing what one has been doing before to achieve the same results is a pipe dream. In such times one has to challenge the status quo and look for out of box solutions to deliver incremental growth. At Exit Bee, we pride ourselves in helping our clients stand out and thrive in the most cost-effective ways: our ads deliver 20x engagement than standard banners and by default deliver a minimum viewability of 90%. Delivering both performance and brand metrics so you can look forward through the economic crisis with confidence.
Our Smart Exit Ads makes our client’s media investments work harder. Our campaigns have shown Exit Bee’s creative out performing standard display ads at ¼ the cost of display partners. We capture the audience’s attention by delivering contextually relevant ads when they have disengaged from the content. This is the future of digital advertising, providing a new and improved experience for audiences with relevant and bespoke creative, delivering 100% viewability and performance that is twenty times higher than traditional banner ads.
With Q4 2022 starting with more uncertainty in politics and economy, one thing is certain that new ideas are the solution to progress and sitting on tried and failed methods will not produce favourable outcomes. Exit Bee can help your under pressure marketing budgets deliver results, while maintaining high standards of creative and media quality, giving clients a fighting chance to close 2022 on a strong note. Re-imagine your advertising campaigns– there’s no time like the present.
For more information, reach out to us to find out how you can make Exit Bee solutions work for you.
