Ahh yes, financial instability. Just what we need right now.
If you’ve been following economists’ predictions this year, your palms might be sweating as you think about the next few years. With reports of a possible recession looming, many companies are already taking preventative action.
Whether or not you’ll be impacted, part of running a sustainable business (and accessing peace of mind) is being prepared. One of the simplest ways to bulletproof your business is by cutting back on unnecessary marketing spend.
Simply cutting your ad budget or laying off staff is a quick fix that won't necessarily get you real results. Fortunately, if you run a business or agency with a plethora of marketing costs, you can shrink spending in ways that pay off in the long run.
Double down on what’s working.
It’s common sense business advice for any time. But if you’re operating on a tight budget, you have that extra pressure to cut the fluff. It’s a great time to question any experimental projects or extracurriculars that aren’t serving your main priorities. By defunding any efforts that aren’t working, you free up the budget to double down on what’s working.
Take a calculated risk.
In times of economic uncertainty, leaders can have a tendency to freeze. Total risk avoidance can seem like a strategic move, but often, it’s a fear move. Trying something new can serve as a reminder that you do have some control. It can also serve as an advantage during a recession, as competitors may be laying low and playing it safe. Paradoxically, some companies make their greatest strides in times of economic uncertainty. Reframe the situation by focusing on maximizing profitability instead of making arbitrary budget cuts.
Get savvy with creative services.
If a good chunk of your budget is spent on must-have creative services, aim to improve there. It’s a matter of getting the best possible service for the lowest price.
There are three ways to do this:
- Make cuts - Find things you can afford to cut out
- Reallocate - Funnel some marketing dollars toward something else
- Outsource - Find more affordable solutions and services
Employ an AI writer.
Unfortunately for writers, AI will not be helping them out during the recession. But for business owners, AI can provide the helping hand you desperately need – and at a very low cost.
An AI writer can revolutionize your content creation process and save you tons of money. If you are using a content subscription platform like Scripted or ContentWriters, hiring freelancers, or considering hiring staff to keep up with content output, an AI writer can be a gamechanger.
The infamous ChatGPT is a favorite for writing emails, blogs, social posts, and more. Some predict it won’t be free much longer, but for now it’s a free content solution that helps keep your budget lean.
Not a fan of ChatGPT? Even paid AI writers are a fraction of the cost of other content writing solutions. Tools like Rytr allow you to generate tons of content for as little as $9/month.
Cut down on graphic design costs.
Reducing spending on things that power your brand is tricky territory. Yes, you want to save money, especially in preparation for an economic drought. But you don’t want to cut so much that it hurts your visibility and conversions.
Hiring designers gets costly fast – and if you’re not even getting the quality you’re after, it can be worrisome. It might sound odd to suggest that opting for a new monthly subscription can help you cut costs. But especially for larger companies, it actually might.
This is why unlimited graphic design has become many brands’ secret weapon. Companies like Penji provide teams of professional designers that dish out designs for any purpose, as often as you need them. Get landing pages, apps, social posts, and anything else you need designed in one place.
Cut down on video production costs.
If you rely heavily on video content to power your content marketing strategy, video production can become a burden. If you’re hiring freelancers to edit or videographers to produce your content, the whole process can turn into a money pit.
An unlimited video editing tool like VidChops can be your one-stop shop for unlimited video editing. Most services like VidChops have multiple tiers so you only pay for what you need. It’s especially valuable for brands with growing YouTube channels that want to keep the momentum going. Instead of paying full-time staff or pricey freelancers by the hour, you can get more bang for your buck with a monthly subscription.
Conclusion
Managing a successful marketing strategy is more piecemeal than ever. There’s no one-size-fits-all approach, and no surefire advice on what will work for your specific business. Some companies rely entirely on DIY tools, some are 100% in-house, and others outsource certain tasks. The key is customizing your budget to support your strengths.
Some questions to ask yourself when cutting marketing expenses:
- What’s your top priority in business right now?
- Is your business pivoting? If so, how will this impact marketing?
- Are you allocating enough/too much toward social media?
- Would outsourcing save you money? If so, how much?
Rushing to cut your marketing budget without investigation, even during a recession, isn’t always wise. Instead, brands should carefully consider where they are now and where they want to be in the next few years. Pinpointing your goals and biggest liabilities will offer insight into what’s best for your unique situation.
