Monica, CMO of SOCi, holds 20+ years of tenure in digital marketing & advertising, with a foundation in sales, strategy, and data analytics.
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The story of marketing in 2023 started with budgets tightening amid recession fears. Companies will expect more from less; marketers will need to get creative to accomplish their goals. But changing circumstances also offer opportunities for growth; marketers will find chances to implement more innovative strategies and lean into other channels to engage and retain customers.
Martech consolidates.
Economic downturns force hard decisions on marketing budgets, but investigating budgets for inefficient spending will prove an important place for marketing teams to begin. The martech stack is a prime example: When marketers set their digital strategies, they often add more and more point solutions to accomplish those strategies. Over time, martech stacks have become extremely complex, with a potential overlap in services among all those different tools. The softening economy will introduce budget constraints that will press the need for efficiency.
Efficiency will continue to usher in the consolidation of solutions for martech. Instead of weaving a complicated tech stack together, marketers should be choosier with where their dollars go, looking to get the most from any new solution. Platforms that consolidate options into a suite will better meet marketers’ needs for efficiency, and they’ll be more likely to commit their budget to them.
Earned and owned channels take center stage.
Marketers will do their best to find more efficient ways to spend their budgets, but many companies will still make cuts. And the first thing to go in a downturn is often paid spend. Nielsen is already seeing the ad market shrink—and those cuts will likely deepen if the economy heads into a recession.
With decreased paid spend, marketers will shift their attention toward building their earned and owned channels to compensate. Customer retention costs less than customer acquisition, and driving growth from existing customers will matter much more in a tighter economy.
Marketers will need to double down and make the most of touchpoints like owned websites, social pages and organic search. They should use the time and effort that would’ve gone to paid advertising to instead buff up those digital touchpoints—many of which were first stood up during pandemic-driven digital transformations. Marketers can also better keep up with the number of conversations happening in the digital world, responding faster to social media engagement or consumer reviews to better convert sales from existing customers.
Communities flex marketers’ creative muscles.
Faced with tighter budgets, marketers will get more creative by tapping into existing online communities with interests aligned with their brands. For example, hardware stores could connect with communities on Etsy or Facebook Groups with affinities for DIY projects. Gyms could weave their ways into Tumblr or Twitter fitness communities.
Marketers need to pick communities authentic to their brands. Those stumped on where to start should dive into data on where and how their current audience engages, then build a community on their most used platforms and expand over time. Tailor your creative to match what you want to sound like and what fits the platform—if your creative sucks, it won’t matter how many platforms you’re on.
Take it one platform at a time. Marketers, especially multi-location marketers, usually jump into all channels and try to do everything; that’s an immediate path to failure. Technology can help you scale when you’re ready to move into more channels, but start small and build as you go.
And being in these communities means actually being a part of them. Talk to community members and be responsive. Regular engagement through opportunities like short polls or small contests gives community members reasons to come back and engage with you. In turn, you can research your customers’ interests and determine what type of engagement works best within each community. For instance, you can A/B test a video on Instagram Reels or TikTok and monitor performance to better target your time and dollars.
The new year poses plenty of new challenges, and marketers must rise to the occasion. But by consolidating complex martech stacks, leaning into owned and earned channels, and building an engaged community, they can accomplish their own goals and meet their companies’ growing needs.
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