While economists and investors debate whether or not we’re in a recession, 78% of marketers say it’s already here.
Since marketers are usually the first to see budget cuts in an economic downturn, it’s no surprise that they’re already being hit hard. In our summary as a marketer:
“The company is losing money, raising pricing, and the budget for marketing is small. Because prices are high and the marketing budget is low, there isn’t enough marketing to drive the traffic and conversions we need.”
To help marketers recognize that they are not alone, we surveyed 300 marketers to find out how they are being affected by the recession.
While 47% of marketers said the economy was already having a negative impact on their work, we dug even deeper to discover the top three impact themes marketers are experiencing.
In this post, we’ll highlight those topics, share quotes from participating anonymous marketers, and offer resources or tips to help you navigate this time.
Three Marketing Effects Due to Recession Concerns
1. Consumers are spending less and exercising more caution/prudence:
Although not surprising, the biggest impact marketers are seeing is consumers cutting costs due to uncertainty. This matches well with the data we found Multiple consumer pulse surveys over the past six months,
From inflation to geopolitical uncertainty and COVID-19 concerns, consumers have absolutely no idea what to expect from the future.
“People are spending less because they don’t know how long the recession is going to last. As a result, they spend less on our products,” says one survey respondent.
To make matters worse, a majority of marketers (67%) expect the recession to last more than six months, and a third expect it to last more than a year:
While we don’t have a crystal ball, legal or financial experts aren’t offering advice, and can’t possibly know what a full-blown recession will feel or look like at this point, it’s important to remember Recession is often inevitable. While we can’t stop them, it’s important to continue to take advantage of reliable sources, data, and experts in addition to a few publications when determining when, if, and how a modern-day recession will affect your business.
2. Inflation has made everything more expensive for businesses.
While consumer spending is pulling back, inflation forces businesses to raise prices and cut budgets for the things they’re buying to keep afloat.
As one marketer in our survey put it, “High prices make it hard to make ends meet. I have to delay payments, purchases and planning.”
The company’s increasing prices while the consumer is leading to a misalignment between the two is causing frustration on both sides.
3. 37% of marketers have already seen budget cuts.
Marketers in our survey say they “need to spend more to get the same results they did six months ago.” Also their budget is being cut.
With their usual marketing channels proving less effective than before, marketers are having to get creative.
On top of that, one in three marketers say the recession will have an even bigger impact on their marketing activities than COVID-19, while another 33% say it will be about the same.
One way to stay ahead of the game is to follow suit of 80% of established marketing leaders, who took part in another survey we ran, Saying that they have already planned or prepared for the recession.
If you run a team or major project that requires a budget, and haven’t started strategic planning for the company’s various outcomes, here’s a helpful guide, For marketers at any level, this can be a good idea too. pivot or create a backup plan For how you will adjust your materials, schedule, or other aspects of your work if something unexpected happens.
What will happen next?
So what now? We’ll run this same survey on later data in the coming year and bring you updates on how the recession continues to impact marketers. In the meantime you can review take this time of consumersGet Insights from Marketing ExecutivesOr catch up with us on everything going on in our rapidly changing sector 2023 Marketing Strategy and Trends Report,