3 Reasons Not To Slash Your Digital Marketing Budget
When confronted with an economic fallout, businesses cut marketing budgets first. Now, the idea is that it’s counterintuitive to spend big on marketing when customers are spending less and revenues are down. Before temporarily pausing activities, it’s essential to understand what aspects drive spending and, most importantly, whether they still apply. Reclaiming certain spending items can do more harm than good. Did you know that it can take up to 9 months to recover from a halt in search engine optimisation? If your search rankings fall, it is a cause for concern.
When little to no effort goes into promotion and sales activities, people ultimately lose interest and doubt the ability of the company to provide support. If you don’t market your business, you don’t have one. The truth is that you have to spend money to make a profit. Provide capital early on and invest wisely by targeting the best prospects. Go beyond just segmenting customers and identify sub-segments. They are your best prospects. Get the word out about your business and be relentless about it. The costs related to digital marketing can add up quickly, but investing in marketing is one of the best decisions you can make.
It will take a long time to catch up to the competition. It is unacceptable to watch your business decline in the search engine rankings. Don’t fail when your business fails. Maintain or even increase your digital marketing spending. If your marketing endeavours come to a halt, so does communication between the business and its customers.
Here are 3 good reasons why you should ramp up your digital marketing and avoid budget cuts.
1. The ROI For Your Digital Marketing Strategy Is Still Valid
Measuring the return on the investment matters in terms of establishing the success of your campaigns. Otherwise, you don’t know how many conversions you’re getting or how much organic traffic has grown. You’re potentially wasting your budget. After having analysed the results, you can take the necessary steps towards improvement. The ROI is the surest way to determine if you are allocating your budget wisely. An effective way to increase traffic to your website and get a higher ROI for your online activities is link building. If you are working with a link building agency, have them go in-depth and calculate the value of each session.
Social media marketing is another effective channel. It doesn't require a significant budget. As long as the ROI is bigger than 0, your investment is making you money. If you want to increase your social media ROI, update and adapt your strategy over time. The content, strategies, and channels you use today won't be effective tomorrow. Finding the right message can be challenging, especially in a fast-changing world. You must predict how customers' wants, needs, expectations, and purchasing decisions will evolve with time. Take into account the most serious or severe scenarios to anticipate possible changes and find alternative courses of action.
2. There Is The Chance To Do The Opposite Of Your Competitors
If you want to beat the competition, do the opposite of what your competitors are doing. Everyone in your industry is trying to reduce marketing costs, and doing the same isn't a wise move. If you can afford it, you shouldn't cut your digital marketing spending. Think about all the competitors who are reactive to the situation and putting an end to all marketing. If you are advertising (and they are not), you will be the go-to choice when customers feel like shopping. In business, you are either the hunt or the hunted. Ask yourself what you can do differently.
Even if your competitors are still advertising, try to be different - be better. If your competitors are doing Google Ads, use TikTok ads. More than half of the platform's user base are people around the ages of 18-24. You can optimise your campaigns around objectives like traffic, app instals, lead generation, etc. If the competition focuses too much on social shares, give link building a go. It is a necessary foothold for ranking in search engines. Surprisingly, you can expect the price of link building services to be affordable. Vet check the websites in advance to make sure they are genuine and you get reliable traffic.
3. You Risk Losing Credibility And Relevance
Customers are more loyal when they trust a business they interact with. If you don't promote your company, you miss out on the chance to build credibility. Do your best to show people you are an expert in your industry and a trustworthy resource. Market your products and services. Most importantly, deliver on your promises. Whether it is online marketing or billboard advertising, the product / service should be as described. The last thing you want is to create negative public perception. With a better reputation, your organisation will gain the lion's share of all-important advertising metrics.
If you don't align your actions with your words, the impact can be devastating. People won't jump at the opportunity to give their money. Put serious effort into marketing your business so that your customers see you as a 21st century company. You can lose credibility only once. Building trust takes time, so don’t expect overnight success. The more you invest in your digital marketing, the more effective it will be. If you don’t deliver, your credibility will suffer. Put yourself into the customer’s shoes. Would you be willing to sign up for a business that has a reputation for overpromising and under delivering? Probably not.
Final Thoughts On Digital Marketing Budgets
Thanks to digital marketing, you can communicate directly with your customers, who see your messages, reviews, and social posts. Even if times are bad, you should advertise. Continue to stay active on your website, social media accounts, and any other digital channels. By building brand awareness, you are investing in long-term growth. People will be able to see you in the digital space and recognise your brand. A higher popularity means a higher market share (and vice versa). Of course, you will need consistency across all facets of your brand. If you want to reduce your marketing budget, do it safely, not quickly.
