During this uncertain period, maintaining businesses and a stable financial position poses significant challenges. Industry experts advise marketers to adopt prudent strategies, emphasizing clever spending in marketing and technology as a key approach to navigate a recessionary economy.
According to an IMF report, global growth is expected to decelerate from 6% in 2021 to 3.2% in 2022 and further to 2.7% in 2023. India’s global growth is also projected to decline from 8.7% in 2021 to 6.8% in 2022 and 6.1% in 2023. In response to economic challenges, companies often initiate cost-cutting measures, with marketing expenses being among the first to be reduced. Marketers are urged to conduct thorough research into their advertising and marketing plans to navigate through these challenging times.
A 2009 Harvard Business Review paper on marketing during recessions emphasized the need for companies to revise marketing strategies and reallocate investments to creatively address customer needs during difficult times. Innovative thinking becomes crucial when survival is on the line.
Viren Razdan, Managing Director of Brand-Nomics, suggests that marketers should craft strategies based on market conditions. He emphasizes that in challenging times, when advertising and marketing budgets are slashed, brands have an opportunity to showcase their strengths and build confidence.
Shashank Sharma, Co-founder & CEO of Expedify, outlines a pragmatic approach for businesses to spend their resources wisely. He emphasizes that, during a recession, inventive marketers focus on customer profiling, marketing analytics, and building a tech stack to laser-focus on their core audience. Sharma highlights the importance of creating an ecosystem that facilitates one-to-one conversations with consumers, enabling evolved marketing companies to thrive even in constrained budget environments.
Ashray Malhotra, CEO and co-founder of Rephrase.ai, sees advanced technology as a refuge for marketers during a recession. He predicts an increased reliance on AI technologies to create video content as a more efficient and cost-effective alternative to traditional methods.
Karan Taurani of Elara Capital advises marketers to evaluate the return on investment (ROI) and effectiveness of each medium during a recession. He suggests that, with reduced budgets, marketers should allocate resources to the most effective mediums with proven ROI, leading to a reevaluation of advertising budgets and a potential impact on digital advertising growth.
In conclusion, the consensus among experts is that, in times of economic uncertainty, marketers should embrace innovative strategies, leverage advanced technologies, and allocate resources judiciously to navigate challenges and maintain brand resilience.