Marketing in an Economic Downturn
In this uncertain economy, Marketing departments have smaller teams and tighter budgets and need to do more with fewer resources like executing mission-critical tasks all the while producing above-average results.
The solution is to use automation and agency partners who can help you do more with those smaller budgets. This lightens the load on teams, allowing them to focus on delivering great results. Efficiency drives effectiveness. Marketing executives need to "do more with less" and maximize output. What makes your team successful? What qualities should you explore in 2023? Let’s explore.
What It Means for Marketing Executives Given the Economy
Economic analysts are unsure about the future of the economy. There are differing views on whether there is an economic downturn happening, about to happen, or will happen at all. Economic uncertainty grew due to recent banking crises caused by Silicon Valley Bank's failure. Some businesses are still implementing layoffs and budget restraints because of ongoing inflation costs in the current economy.
During times of economic uncertainty, company-wide budget cuts often affect marketing budgets first. As a result, clients often seek ways to reduce costs when companies decrease their marketing budgets. It is important to note that making any cuts at this time could worsen the current tight labor market, which was brought about by the "Great Resignation" of 2021 when organizations faced challenges in finding qualified candidates for available positions.
Many executive teams are expecting growth despite the uncertain economic climate. The advertising industry is being affected by lower growth projections for ad spending this year, resulting in a greater emphasis on marketers' need to achieve more with less.
Tighter Budgets & Leaner Teams
Due to various factors, marketing teams are currently faced with leaner teams and smaller budgets. In order to meet their performance targets and remain relevant, marketing executives will need to work more strategically in 2023 and beyond.
Agencies use technology to automate and enhance performance. This approach is supported by leading advertising platforms. The CEOs of Meta and Alphabet have both stated that 2023 will focus on efficiency and aim to increase productivity by 20%.
An efficient partner can streamline tasks, provide valuable insights and reports for improved performance outcomes, and optimize resource allocation. To achieve greater productivity and relevance, marketers can benefit from partnering with a reliable agency who is focused on their success.
What to Look for in a Partner
What are the key characteristics of a productive partner? How can organizations achieve more with less, effectively reaching their target market, and delivering measurable results? Here are some important considerations to consider:
01 | Performance, ROI, and the Influence of Omni-channel
Successful marketers understand the importance of their objectives and rely on partnerships with professionals to determine their best course of action. Their flexibility, transparency, and commitment to service drives successful outcomes.
Those agencies using platforms with advanced performance technology can lead to a higher return on investment, helping you achieve your goals and stay relevant in your industry, even in a challenging environment.
To effectively reach your audiences, it is important to have clear and accurate data sets, utilize machine learning-powered bidding technology, integrate with partners for access to placements and continuous improvements.
Advertisers who use data to optimize their strategies stay focused on their goals and are open to new approaches based on current data.
Consider if you want to reach a wide audience with your message or target a specific audience with a specific message.
If campaign data shows that certain creatives, messages, or audiences are performing better, consider changing your strategy.
Successful advertisers are open to different methods while staying aware of their objectives.
Collaborate with specialists to achieve performance targets using data-driven exercises.
Lean and agile teams can increase their ROI by collaborating with agencies that have omni-channel capabilities. In today's focus on efficiency, a reliable all-in-one solution can benefit advertisers. With omnichannel platforms, advertisers can evaluate performance across multiple channels and allocate budgets for better results. By learning from various channels and adapting strategies in real-time, advertisers can improve performance faster and more effectively. This is an excellent way to maximize resources.
02 | Improve Workflow Efficiencies With Automation
Brands often respond in a reactionary manner when faced with smaller teams and tighter budgets. This often involves cutting external vendors, eliminating services, and adopting a manual, internal strategy. However, a more efficient alternative is to leverage the technology and expertise of a agency partner.
One effective method for reaching performance goals involves utilizing technology for automation rather than relying on manual internal processes. By automating transactions, processes, and media purchases, teams can work more efficiently and reduce their workload.
Based on a recent study conducted by Forrester Consulting, it has been found that 83% of marketers plan to focus on hiring and operational efficiency investments in 2023. Utilizing high-quality tools and services can help alleviate the workload of internal team members, ensure proper platform management, and provide valuable insights that lead to tangible outcomes.
Appropriate technology and product capabilities can eliminate manual tasks that waste time and resources. Collaborate with a partner that offers built-in software solutions to streamline media planning and buying. Use direct integrations to decrease errors and increase productivity. Provide your teams with the resources and tools they need to manage projects and bridge the gap between media planning, buying, and accounting.
You can benefit from the assistance and knowledge of a agency partner. They have specialized knowledge and training to make strategic recommendations and manage campaigns for better results. Look for a partner who offers flexible service options.
03 | Insights & Transparency
Transparency and understanding of advertising expenditure are important for advertisers to achieve success. Advertisers seek to be informed about the allocation of their funds, regardless of current trends or limitations in budgets and resources. By utilizing platforms that prioritize transparency and provide clear reporting, advertisers can gain insights into how their money is being utilized, where their media is being delivered, and how content reflects their brand's narrative.
By examining reporting data and gaining insights into campaign performance, creatives and advertisers can make informed decisions and adjust strategies as needed to achieve optimal results.
Transparency and reporting can enhance ROI and performance outcomes by providing data for better decision-making and reducing costs through clear budget allocation. Regardless of the economic situation, transparency is crucial for advertising platforms to support their partners' success. It is important to recognize the significance of establishing meaningful connections among specific data points, which can only be achieved when platform partners offer detailed insights with clear transparency.
Avoid these Mistakes When Choosing a Partner
To make the most of limited resources, it is important to understand what doesn't work when selecting an agency partner. Buyers should be aware of the potential obstacles to achieving performance and a successful partnership. A poor fit could negatively impact relevance and performance, as well as waste team resources and advertising funds. Here are some key characteristics to avoid.
Opacity and lack of insight can hinder the ability to analyze and understand data, making it difficult to efficiently optimize media investments without clear guidance from a platform partner.
Using different measurement and attribution tools for different channels presents a challenge for advertisers as it can be difficult to compare results accurately. It is recommended to use a consistent measurement tool to effectively evaluate media plans, budgets, and performance to ensure accurate planning and investment across channels.
To avoid workflow and automation inefficiencies, it is best to avoid a "swivel chair" solution that involves time-consuming cutting and pasting of reports and trafficking errors. Advertisers often piece together relationships with multiple vendors due to limited options for media planning, buying, accounting, and project management. However, it is advisable to avoid spreading yourself too thin if possible. Instead, emphasize the value of working with a single partner who understands your team, knows your needs, and can provide excellent service with advanced technological solutions to address software and advertising requirements.
Who Will Be Most Successful in 2023?
When used effectively, advertising technology and an experienced agency partner can enhance efficiency and productivity by automating processes, providing expert-level service, and improving performance with a clear strategy and transparent reporting. Despite the current economic uncertainty, 2023 has the potential to be a significant year for maximizing relevance. It is important to keep the following in mind:
