Over the years, the entire world has started shifting to online shopping; it has changed the market in plenty of ways. How businesses market their...
Top Reasons Why Digital Marketing Will Thrive in the Looming Recession Due to COVID Pandemic
The coronavirus (COVID-19) outbreak has triggered not just a global health crisis but also a financial crisis.
In a bid to control and contain the disease’s rapid spread, several countries have announced sweeping containment measures.
These measures which are meant to prevent citizens from spreading or contracting the virus is causing an economic downturn.
While some businesses are on the verge of becoming bankrupt and failing, others are weathering the storm but uncertain about what they could do to minimize the economic impact.
As a business owner, it is normal for you to fuss particularly on how you can still make sales, generate revenue and stay afloat.
Of course, there is still hope on the horizon, as the unprecedented circumstances caused by the COVID-19 have also presented an opportunity for businesses to leverage.
The strong calls for social distancing and self-isolation means that more people will remain in their homes and rely heavily on the internet for their needs.
This then provides business owners with an opportunity to use online marketing to their advantage and minimize the economic impact.
The top reasons why digital marketing will thrive in the looming recession due to the coronavirus (COVID-19) pandemic is because:
1. It levels the online playing field
Any economic downturn is known to have a significant impact on businesses, particularly startups, smaller brands, and enterprises.
The only way for them to minimize the financial impact is by advertising their products and services to make sales and generate revenue.
At times like this, an equal level opportunity on any marketing channel is critical, or else they lose out completely.
In the days of traditional marketing channels, the winners were large businesses with sufficient resources to buy up coveted Ad spaces.
This left smaller businesses and start-ups struggling to receive adequate exposure and make sales.
However, digital marketing has changed all that, as it levels the online marketing space by catering to the marketing needs of businesses of all sizes.
Digital marketing provides businesses with equal levels of access to web traffic and a broad audience. This is particularly important during an economic downturn when the rules of ‘fair-play’ are flouted and the competition for available customers explodes.
Online marketing is set to flourish as the cost of entry is low, its benefits immeasurable and opportunities endless.
2. It is more cost-effective
Continuous Cash flow is crucial during a ‘bear market’. An economic decline will result in reduced consumer confidence levels and drastic drop-in purchases.
This is troubling for all businesses as their cash flow becomes disrupted. As sales dip and revenue dwindles, businesses will scramble for cost-effective alternatives to all their vital business processes.
Marketing is one such vital process, as product and service promotion, as well as customer base expansion, is critical during this time.
This will result in a shift from more expensive marketing options to a heavy dependence on cost-effective options like digital marketing.
In a digital marketing spending survey by Gartner– an international research and advisory corporation, 41% of marketers reported receiving substantial savings using digital marketing channels to promote their business.
This report is a strong indication that digital marketing is truly an effective marketing channel with positive outcomes and substantial cost savings.
It will not be a surprise for digital marketing to witness a surge in utilization by businesses who will rush to capitalize on inexpensive, yet effective channels to promote their goods and services.
3. It delivers higher conversions
During an economic downturn, businesses will not just focus on generating exposure, but also receiving positive results for it.
This result is basically in the form of conversions- which is a crucial metric in online marketing efforts.
Conversions are sort of like an indication of the number of visitors to your platform that trickle-down your distinct marketing funnel.
In other words, conversion rates inform marketers of consumers who have transformed into leads and potential paying customers.
Digital marketing has the ability to provide businesses with higher conversions. A variety of digital marketing techniques like Search engine optimization (SEO), social media marketing, email marketing, Blog Posts, etc can be used for effective communication with a target audience and deliver above-average sales conversions.
These conversions can also be in the form of an increase in successful service bookings, email subscriptions, free quote requests, eBook downloads, event sign-ups and so on.
4. It helps generate higher revenues
Higher conversion rates via digital marketing can boost a business’s chance of higher and better revenue generation.
In fact, according to an article by Lyfe marketing, companies that implement an effective digital marketing strategy have 2.8 times higher revenue growth expectancy.
In simpler terms, an effective digital marketing strategy that results in high conversion rates equals increased chances of higher revenue.
Of course, this will be very appealing to business owners hoping to minimize the financial impact of an economic recession.
That is why companies will focus more on digital marketing to stand a better chance of not only surviving but thriving in a recession.
With better revenue growth expectancy, companies leveraging digital marketing solutions are set to expand their business and workforce possibly during and after the downturn.
5. It caters to mobile consumers
In recent years, the use of mobile devices has surged and is expected to keep on rising.
Millions of people are now turning to their smartphones for quick access to the web.
Businesses desiring broad brand exposure in which they are available and accessible everywhere, can not neglect mobile marketing.
Of course, mobile marketing is a subset of digital marketing, thereby leading to a rise in its use as business owners create campaigns aimed at mobile consumers.
6. It Entices People to Take Favorable Action
Unless consumers take actions that favor marketing strategy, then all the effort and hard work is somewhat in vain.
Digital Marketing employs effective tactics that will urge consumers to take favorable action in line with a business-specific intention.
The truth is that Consumers are in complete control of their decision to convert or not. They are not forced to, but marketers can use smart and creative ways (such as Calls-To-Action) to encourage conversion.
Calls-To-Actions function in getting web visitors to take specific actions, which could either be to sign up, subscribe, download, share, call or buy.
The text, design, and placement of call to action (CTAs) are crucial to its ability to yield positive outcomes in terms of web visitors taking favorable actions.
7. It provides a better return on investment (ROI)
A marketing campaign can yield many different benefits, but its end goal is to generate a high return on investment.
Returns on investment popularly known as ROI in the business world is the ratio between Net profit over a period of time and the costs of the investment, expressed in percentage. A high ROI indicates that the investment is profitable and yields favorable gains. This means that any effort whatsoever is bringing in more money, than what is being spent.
High Returns on investment are critical particularly during a downturn where there is a sudden change in consumer spending habits. This profitability provides a solid financial standing for a business during and after the recession.
There are a variety of digital marketing techniques, tested and proven to provide net gain on investments. These effective channels include email marketing, search engine optimization (SEO), search engine marketing (SEM), social media marketing, and content marketing.
Businesses hoping to receive value on every buck they spend during the downturn will instantly implement either one or more of the digital marketing techniques’.
Using any of these techniques, Marketers have the ability to monitor their respective channels. The insights generated can inform them if there is a need to adjust or change tactics to maximize their returns on investment.
8. It Ensures the Survival of a Business
An economic decline typically leads to a reduction in consumer confidence levels and a change in spending habits. This has a resulting impact on businesses who witness a drop in sales and revenue. Even as foot traffic into stores reduces, business owners must find a way to still make sales or risk shutting down for good.
The possibilities of digital marketing are endless. There are a variety of different strategies that have proven and tested to deliver actual results. Businesses can leverage digital marketing to target their preferred audience, entice a conversion and encourage a sale. During challenging times, business owners are pushed to adopt and implement creative processes to ensure the survival of their business.
Digital marketing presents unlimited opportunities that business owners can capitalize on during challenging times.
In an economic recession, there will be a need for businesses to change or modify their existing business models. It can no longer be business as usual as consumer purchase behavior changes and sales dip.
The various Digital marketing techniques provide business owners with the best possible chance to compete favorably, survive and even grow during a downturn.
That is why digital marketing is set to thrive in the event of an economic recession.
We've optimized 5000+ websites and managed a combined Ads Budget of over 50M
Get in touch to know how we can help your business grow. Get a Free Website Audit in the process
"We are grateful for the guidance we received from Digital Success Agency with our SEO efforts. Not only did they help increase traffic to our site, they also made suggestions for improvements so that we could enhance our content. Team was always helpful and quick with any requests or questions we had. We were very happy with this partnership."
"Digital Success Agency team does great work and provides great customer service. Their prices are very reasonable as well. I like the fact that I have a person dedicated to my account that I can turn with all my questions/issues."
"Things are looking good. The influence of the top ten looks great and it appears we were even in terms of overall traffic from November to December aside from lower PPC numbers which is what we are attempting to do. Nice work. I am excited to see how things shake out when our busy season starts to really take off. Thanks again to you and the team."
"It was a pleasure working with Digital Success Agency team. I wanted to make sure I thanked you for all your hard work, and such speedy communication and clear updates. Again it was great to have you as part of our team."
"We appreciate the help you all have provided with our website and SEO efforts. And though you and I had just started working together, I personally have been very impressed with your thoroughness and quick communication."
"The Digital Success Agency team is knowledgeable and hard working; just what we need from a strategic partner as we look to grow our business. I would recommend them for your SEO and PPC needs without hesitation. Four years ago we made that decision and it's paid off nicely!"
"Having Digital Success Agency as our SEO partner has allowed our agency to concentrate on what we do best. Developing full creative campaigns are what we excel at as a group. Incorporating Digital Success Agency SEO plans and developing web tools to support the creative that we develop provides support for all our client initiatives. As an agency I would recommend engaging Digital Success Agency in web projects of all levels."
"Having worked with Digital Success Agency since 2006, it has always been a great experience working with all the folks over there. They are extremely qualified, and have always demonstrated an incredible level of enthusiasm and professionalism when working with me. I'd recommend them to anyone looking to expand in-house capabilities, or is looking to bring on outside resources."
"You have been by far the best outside resources I've worked with for SEO and it's reflected in the clients you managed - all grew their traffic, keyword rankings, and leads under you. You've been a big help for me over the last few years and I really appreciate it. "
Google has been quite active in August – announcing one of their biggest updates in over a decade – The ‘Helpful Content Update’, along with...
We live in a day and age where traditional marketing methods don’t work as effectively, even for localized businesses like construction companies. Convenience is driving...
SEO stands for search engine optimization. It is a strategy that helps you rank your website or the content higher on search engines. If you...
Are You Aware of these 10 (un)Popular SEO and Digital Marketing Scams & Steps to Safeguard Yourself?
Let’s go by the statistics first! Almost 70% of businesses are offered search engine optimization services, if not more, once every week. Yes, that’s how...