Historically the reaction indonesia telegram data from marketers and advertisers during times of uncertainty like this is to rein in marketing budgets and/or retreat to performance marketing. But on the other hand there’s always a fair showing from those on the agency side who say that cutting marketing budgets during times of crisis is unwise.
For example, this article by Seema Nayak from AdChina argues that there’s less competition during tough times so being more present in market is an advantage. This makes sense, but of course it depends on your industry and target market.
As market uncertainty is happening in realtime, founders of micro agencies or marketing freelancers have been pivoting quickly to protect their revenue and help shield against client churn.
Consumer Business Confidence (or lack thereof)
The affect of higher prices the ultimate glossary of international transport
on consumer confidence has negatively impacted many businesses which in turn negatively impacted digital agencies grappling with higher client churn and reduced marketing budgets. But there are interesting nuances and exceptions.
We spoke to Sarah M. Campbell, GVP Brand & Experience Strategy at one of the world’s largest interactive agencies, Razorfish (part of the Publicis Groupe). She’s been analyzing consumer confidence and the flow-on effects to businesses. Sarah outlined 3 main insights from the agency’s wide-ranging research:
While there’s debate about whether or not we’re headed into a recession, the pandemic recovery has been resembling what’s known as a K-shaped recovery, where certain sectors and people who were doing well before the pandemic are doing even better, while those who were doing marginally are struggling the most.
Now is the time for experimentation
During economic downturns, mobile list consumers’ behavior can be difficult to predict. The instability may cause consumers to reach for brands they know and trust, but they’re also far more likely to reach for competitors.
Switching was not only common during the pandemic, but when surveyed, consumers said they would continue their switching behavior post-pandemic: not only based on availability but on novelty too.”After tending to your loyal customers, opportunity lies in exploring further. Knowing that consumers are switching more often than usual is an opportunity for brands to test and learn with new audiences, messages and media approaches.”
These insights from Razorfish help set the scene for informed agency-client conversations in the 2nd half of 2022. Rather than businesses pulling back, this is a time of opportunity for some and it’s the role of agencies to help guide their clients through the current economic dynamics.