Covid19 has caused a prolonged recession and plunged the United States into an economic crisis. Experts have said this crisis is worse than the Great Depression and may have lasting effects on the US economy.
What is Digital Marketing?
Marketers can use any marketing that uses electronic devices to deliver promotional messages and measure their impact throughout the customer experience. In execution, digital marketing generally refers to marketing campaigns that appear on a computer, phone, tablet, computer, or another device.
It can take different forms, including display ads, online videos, search engine marketing, social media posts, and paid social ads.
Digital marketing is time and again juxtaposed to “traditional marketing,” such as magazine ads, billboards, and direct mail. Interestingly, television is often conflated with traditional marketing.
When a marketing campaign involves digital communications, it is essentially digital marketing.
What is a Recession?
A recession is a significant drop in economic activity that lasts for months or even years. Experts declare a recession when a country’s economy experiences harmful gross domestic product (GDP), rising unemployment, falling retail sales, and measures to contract income and output for a more extended period.
Recessions are considered an inevitable part of the business cycle or a regular pattern of expansion and contraction in a country’s economy.
Digital marketing will thrive in the coming recession due to the coronavirus (COVID19) pandemic because:
It’s more profitable
Continuous cash flow during a “bear market” is vital. An economic downturn will lead to lower consumer confidence and crash buying. This is a problem for all businesses as their cash flow is disrupted.
As revenue falls, companies seek viable alternatives for their critical business processes. Marketing is vital as promoting products and services and expanding the customer base are essential.
This will shift from more expensive marketing options to a heavy reliance on profitable opportunities like digital marketing.
In a survey of digital marketing spending conducted by Gartner, international research and advisory firm, 41% of marketers said they had achieved significant savings by using digital marketing channels to promote their business.
This report strongly indicates that digital marketing is an effective channel with positive results and significant cost savings. It will come as no surprise for digital marketing to see an increase in usage as companies rush to capitalize on inexpensive but effective channels to promote their products and services.
Levels playing field online
Any economic downturn is known to significantly impact businesses, particularly startups, smaller brands, and corporations. The only way to minimize the financial impact is to promote your products and services to drive sales and generate revenue.
In times like these, a peer opportunity in any marketing channel is crucial, or they’ll miss it entirely. The winners were large companies with sufficient resources to buy coveted advertising space in traditional marketing channels.
This resulted in smaller companies and startups struggling to get adequate exposure and sales.
However, digital marketing has changed all that, leveling the online marketing space by serving the marketing needs of businesses of all sizes.
Digital marketing gives businesses equal access to web traffic and a broad audience. This is especially crucial during an economic downturn when the rules of fair play are flouted and competition for available customers erupts.
Online marketing will thrive because entry costs are low, the benefits are immeasurable and endless possibilities.
Helps Generate More Revenue
Higher conversion rates through digital marketing can increase a business’s chances of generating higher and better revenue.
In layman’s terms, a robust digital marketing strategy with high conversion rates means higher chances of higher revenue. Of course, this is very attractive to business owners hoping to minimize the financial impact of an economic downturn.
Because of this, businesses will focus more on digital marketing to have a better chance of surviving and thriving in a recession. With better prospects for revenue growth, companies using digital marketing solutions are poised to potentially expand their business and workforce during and after the recession.
Get Higher Conversions
During an economic downturn, companies focus on getting attention and positive results. This result essentially comes in conversions, a crucial metric in online marketing efforts. Conversions indicate the number of visitors to your platform entering your distinctive marketing funnel.
In other words, conversion rates tell advertisers something about consumers converted into paying leads and prospects. Digital marketing can provide businesses with higher conversions.
Various digital marketing tactics, like social media marketing, search engine optimization (SEO), blog posts, email marketing, etc., can be used for functional communication with a potential audience and achieving above-average sales conversions.
These conversions can also take the form of increases in successful service bookings, email subscriptions, requests for free quotes, eBook downloads, event registrations, etc.
Serving Mobile Consumers
Million people are now turning to their smartphones for fast internet access. Businesses that want broad brand exposure, available and accessible everywhere, can’t abandon mobile marketing.
Provides a better return on investment (ROI)
A marketing campaign can generate many different benefits, but its ultimate goal is to achieve a high return on investment. Return on investment Commonly known in the business world as ROI, it is the ratio of the net profit over a given period to the cost of the investment, expressed as a percentage.
A high ROI shows that the investment is beneficial and generates favorable returns. It means that every effort generated generates more money than is spent. High investment returns are crucial, especially during a recession when consumer spending behavior suddenly changes.
This profitability provides a company with a solid financial position during and after a recession. There are a variety of digital marketing techniques that have been proven to produce a net return. These effective channels include email marketing, search engine optimization (SEO), search engine marketing (SEM), social media marketing, and content marketing.
Companies that expect to get value for every dollar they spend during the recession will immediately implement digital marketing techniques. With each of these techniques, marketers have the opportunity to monitor their respective channels.
The insights gained can inform them if tactics need to be adjusted or changed to maximize return on investment.
Ensures business survival
An economic downturn generally leads to a drop in consumer confidence and a change in spending patterns. This is affecting businesses that are experiencing a decline in sales and revenue. Reduced, business owners must find a way to make sales or risk going out of business forever.
The possibilities of digital marketing are endless. Various strategies are tried and tested and proven to deliver actual results. Businesses can use digital marketing to target their preferred audience, drive conversion, and drive sales.
In difficult times, entrepreneurs are forced to adopt and implement creative processes to ensure the survival of their companies.
Entices people to take favorable actions
All efforts and hard work are wasted if consumers don’t take actions that favor the marketing strategy.
Digital marketing employs effective tactics that induce consumers to take favorable action online with specific business intent.
The truth is that consumers have complete control over their decision to convert or not. You don’t have to, but marketers can use clever and creative ways (like calls-to-action) to encourage conversion.
CallsTo Actions causes web visitors to perform specific actions to register, subscribe, download, share, call or buy. The text, design, and placement of the call-to-action (CTA) are critical to its ability to generate positive outcomes concerning web visitors who take positive action.
Wrapping it up
Digital Marketing offers endless opportunities for business owners to take advantage of during difficult times. In a recession, companies need to modify or modify their existing business models. You can’t do things like you used to, as consumers’ buying behavior changes and sales decline.
Various digital marketing methods provide business owners with the best opportunity to compete, survive and even prosper in a recession. That’s why digital marketing thrives in the event of a downturn.