How Your Online Business Can Thrive During the Incoming Recession
In the wake of the COVID-19 pandemic, many are worried about the ramifications that will be felt for a long time to come. Even if and when the pandemic itself disappears, wide-ranging effects in healthcare and economic development will continue to be felt. With the world’s biggest financial downturn since the Great Recession – some suggest it may be even bigger – there is simply no way the economic effects will disappear within a short period of time.
With that being said, online businesses have to find new ways to excel during the incoming recession. What can these businesses do? Let’s look at a few tips that can help insulate online businesses from the worst of this economic upheaval.
Invest in PPC Advertising
Arguably the easiest way that businesses can make their marketing efforts more efficient and profitable during any recession is through the use of PPC advertising. This form of advertising is great given that you’re only billed for the clicks you earn, but why exactly is PPC advertising so highly recommended in general – let alone during a recession?
First and foremost, PPC advertising works well because it allows online businesses to specifically target groups of people. These defined audiences help ensure that marketing budgets are as efficient as possible, only pinging links and ad copy to those most likely to find it useful or persuasive.
In conjunction with refined knowledge about your target audience(s) and optimized ad copy, businesses can generate substantial returns on investment via PPC advertising – even during economic recessions.
Market for Needs Rather Than Wants
As people are scaling back due to job losses and uncertainty in the economy, spending based on wants gives way to spending based on needs. While many online businesses may not be able to shift product selection from “wants” to “needs” necessarily, they can shift how they market their products.
While appealing to the innate desires in people can be a sound marketing approach when promoting benefits or features for select products, online businesses should invest in strategies that allow them to re-frame these elements as necessities rather than desires. Brands and businesses that can appeal to audiences through need will have a less disruptive experience during this recession when compared to a variety of brands built on want or sheer luxury.
Scale Back Rather Than Eliminate
It can be tempting for an online business to cut select investments entirely during economic hardship, but smart businesses know that scaling back rather than eliminating is often the right choice. For example, pinging links on social media with half the marketing budget you may have had several months ago still generates traffic and engagement; cutting back entirely not only eliminates that source of traffic, but also allows a major marketing channel to atrophy – and that’s just one example of many.
Where possible, making cuts rather than complete eliminations is the best choice for maintaining a strong position through a recession.
Now that you’re aware of the likelihood of this recession continuing and how to respond to it, your business can take steps to optimize marketing and spending decisions accordingly. By scaling back rather than eliminating, investing in targeted PPC campaigns and appealing to needs rather than wants, navigating these difficult waters will be a bit easier.