According to experts, economic headwinds are increasingly pointing toward recession. While it can be easy to jump into panic mode, recession doesn’t always spell doom. One of the keys to business success during and especially after an economic downturn is to stay the course with marketing as best you can. When businesses slam on the brakes and cut marketing investments in times of financial uncertainty, they risk losing business as the economy recovers. So, what does staying the course look like?
Instead of cutting efforts, consider how a full-service agency can increase your marketing capacity and output while gaining greater control over costs. Most agencies can supplement your in-house efforts or take on the full brunt of growing your business.
Let’s jump into the six main ways a marketing agency can help your business thrive during economic uncertainty:
- You have an entire team of marketing experts at your disposal
- Marketing agencies are less of a financial commitment
- There’s less risk with an agency
- Agencies already have proven processes and methodologies in place
- Agencies can provide a more objective view of effective metrics
- Many experienced agencies have already weathered a recession
In-House Marketing and Agencies During a Recession
Don’t just take our word that cutting marketing spending during a recession can lead to lost business. This journal article found that in the first two years of economic recovery, businesses that cut marketing spend lost 0.8 percent of profits, while companies that maintained spend saw 0.6 percent growth. Those that increased spend saw a 4.3 percent increase in profits. So, if your business is strong enough to weather the storm, maintain marketing spend, and/or engage with an agency, you’ll likely see business growth on the other side.
Something else to consider when contemplating where to allocate your marketing budget is that agencies can offer best-in-class expertise across all channels, access to the latest tools and tech, proven processes, industry contacts, and a streamlined experience, provide more value and ways to grow your business.
6 Ways Marketing Agencies Can Help Your Business Grow During a Recession
During periods of financial doubt, marketing agencies provide six key benefits that in-house marketing teams can’t compete with. Let’s explore why you should consider hiring an agency to handle your marketing or act as an extension of your in-house team during this time.
A Full Team of Marketing Experts
When you work with an agency, you’re working with an organization full of marketing experts from the bottom up. This gives you instant access to the combined know-how of an entire marketing team and technology stack, with experience getting results for businesses like yours. Beyond that, marketing agencies offer versatility and flexibility to manage priorities, provide quick turnarounds, and handle large projects that can only be accomplished with increased capacity.
Less of a Financial Commitment
To build an in-house marketing department that could match the capabilities of an agency, you’d be investing significant spend, time, and resources. You’d be taking on the entire financial burden of a modern marketing operation, from salaries to training to platforms and partnerships. Not only does this increase financial pressure, but it also limits your ability to adapt and invest in forward-thinking strategies that keep you ahead of the competition and top of mind.
Less Risk
A good marketing agency will ensure you’re always poised to make the most of your investment and work with you to ensure that investment suits your needs and aligns with your measures of success. Things change, and when they change, an agency can change with you. Scalability is vital to success during a recession.
Proven Processes & Methodologies
An experienced marketing agency will bring pressure-tested frameworks and processes to the table that have been proven successful for themselves and clients within your same industry. Proven techniques do two things; they increase efficiency (providing better results for a smaller investment) and ensure effectiveness (delivering results and ROI). Efficiency and effectiveness are your best friends during a recession.
Objective Metrics
One of the best things about working with a marketing agency is that strategy, deliverables, and KPIs are objective. Internal teams can often be biased when reviewing internal marketing efforts. Pride or agenda can sometimes get in the way, or a lack of experience can make it difficult for an in-house team to establish measurable campaign goals. During a recession, you’ll need to understand realistic industry benchmarks and the value of every marketing effort to ensure optimal performance.
Prior Recession Experience
If you partner with an experienced marketing agency, there’s a good chance they’ve been through a recession, or similar uncertain time, such as the early days of the pandemic. Agencies that have withstood, or even grown, during times of economic turmoil will bring invaluable lessons to your engagement, including insight into what’s worked (and what hasn’t) and what marketing strategies are most effective.
Choosing the Right Agency
No matter how much data is there, we understand that marketing, especially B2B marketing, during times of uncertainty can be complex. When you partner with an agency, you’re working with a group that can deliver effective and targeted marketing strategies that make things less complicated. Whether they take on the entire task of growing your business or supplement your internal efforts, you’re getting the experience, capacity, and capabilities of an entire marketing team with a singular purpose, effective tools, and proven processes, all of which can make a significant difference for your business during a recession.
If you’re ready to weather the storm with a trusted and experienced marketing partner, let’s chat.
