"Marketing budgets are like Marmite at the moment"

We are working more in-depth with our current client base on a wider range of new projects, as well as fielding enquiries from new prospective clients at a pace that suits us, which makes us positive about the rest of 2023. The high street is shape-shifting and won't survive this period. We're seeing that transformation coming through with the ecommerce clients we work with. With the demise of Wilko just this week, this is a case in point. Heavily reliant on a high street presence, they are losing out to retail park outlets who sell more, at cheaper prices and with free parking. Showrooming in retail outlets also has stores losing out to ecommerce outlets too, so omnichannel selling should be at the forefront of everyone's minds right now. Marketing your way through tough times is an olden but golden piece of advice. If you want to have some momentum on 'the other side', now is the time to get going.

Marketing budgets are like Marmite at the moment. Rarely do I speak to clients who want to keep their current marketing budget. It's either an increase, which we're actually seeing more of, or cutbacks. Like last Autumn after the mini-Budget, those experienced heads see it as something we'll get past. Their philosophy is the right one, namely get our name out there more while others cut back. On the other hand, a new one-person business is much more uneasy. We are seeing more people want to take the bull by the horns and overall we're seeing more businesses wanting to increase their spend. I feel much more positive now than I did in Q4 of 2022.

Whether a brand is cutting a marketing budget or doubling down, the question remains the same. Why are you making that decision and what are you spending on? It’s tough, but there is opportunity out there and I personally believe now is the time you check your strategies have longevity. Regardless of whether you have some short-term goals, it’s super important that you are working towards a longer-term goal, too. Someone told me to plan for what you what to look like on the other side of a downturn, so for me that’s ensuring we value the customers we have. Also keyy is ensuring we also stay connected and relevant to people so that ‘when’ they are ready to buy again, we are available and relevant to them. Solid data, loyalty and a content plan to give value is our approach outside of our four walls, whilst product experience is key inside our four walls. I’m optimistic, I'm excited for the future, but it’s still hard.

The past 12-18 months have been a rollercoaster for businesses worldwide, with inflation and rising rates significantly impacting economic conditions. As marketers, we've been at the forefront of these changes, adapting and recalibrating our strategies to meet the evolving demands of the market. The market has become a little slower in terms of decision making and, with tightened budgets, many companies have pivoted towards digital marketing, which often offers a better ROI compared to traditional channels. With consumers feeling the economic pinch, they are looking for genuine value and brands have responded by emphasising value propositions and highlighting long-term benefits in their messaging. Uncertain times also call for informed decisions. As a result, companies are investing more in data analytics to understand consumer behaviour to quickly optimise and maximise their ROI.

As marketers, many of us have been through rough times before and I can still remember working through the credit crunch like it was yesterday. Right now, advertisers are focusing much more on ROI and ROAS metrics, as opposed to building brand, which is still vital for long-term success. We've seen before the long-term impacts of advertisers reducing spend to zero, which harms their business as the economy begins to accelerate and the consumer moves to their competitors. In media, there will be winners and there will be losers. Looking back at the Credit Crunch, then there was a boom in cashback, daily deals and voucher code sites, and that is something we are seeing again now. The brands who play the mix smart across the funnel with a handle on data tracking, statistics and with a test-and-learn approach will prevail regardless of the economic climate.

Although I've felt the pinch myself while shopping in the supermarket, I have to say that for me business has been booming. My clients are focusing on growth and taking advantage of other brands buckling up and tightening the purse strings. I've seen a huge uptick in investment in marketing, particularly influencer marketing and community management. Long may it continue.

We're focusing on building trust with our audience amidst market trepidation. It's important to provide educational resources and a lot of guidance before product pushing because the nurturing phase of the sales funnel is much longer when consumer confidence is low. As spend is reduced, marketing efforts need to multiply. It's important to restructure budgets according to new targets which may involve adopting more technology and tools and bringing outsourced responsibilities in-house. AI is a massive trend shaping the marketing industry, and other tools are becoming more intelligent in terms of graphic design and multimedia creation, making quick experts across marketing functions, and as costs are cut fewer marketers will be hired with one responsibility and we will see the emergence of marketing generalists. I am optimistic because we have adopted the required tools and CRM system to unleash cost-controlled scalability.

Brands are in a tougher economic climate and we have seen that many are experiencing a squeeze on their marketing budgets. This is forcing marketing managers to re-assess which channels are the most effective for them, and make some tough decisions about where to spend. Though performance expectations should be adjusted, the return marketing provides could be a make-or-break difference to a business. My advice is that if cuts do need to be made, make sure they are in the channels with no measurable return on investment. Messaging and approaches should be adjusted to adapt to changing behaviours and sentiment, but hiding your brand away to save money could limit your own recovery. The amount of new opportunities we are dealing with is strong and it feels like there are still many businesses out there who are ready to invest. I think we will see a steady rest of 2023 with most businesses continuing to invest in marketing, albeit with slightly smaller overall budgets.

Whenever there is a slowdown or recession, I always advise my clients to spend more because their competition will be cutting back. That represents an opportunity. Whilst there might be less work available in certain service sectors, each business can still grow by taking a bigger share of the market they're in if they invest in marketing. It worked in 2008 and all of my consulting clients grew in 2020 when the pandemic hit for the same reasons.