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.