Four Fearful Strategies to Avoid to Survive Economic Instability

September 14, 2022

Pitfalls to Avoid in a Recession

Economic uncertainty can be frightening, but knee-jerk reactions will lead to lingering challenges. Avoiding common traps of distressed “recession-proofing” is key! Take this time to double down on your current marketing efforts and get ready to reap a larger share of voice as your competitors shrink from the spotlight! There are several ways to reimagine your brand's marketing during a crisis, such as focusing on existing customers, identifying unique business positioning, or even conducting a bit of market research.

But how can you address panicked thinking that you may not know will be harmful in the long term? We've supported brands for over twenty years and learned a thing or two on how to navigate an economic downturn. Let’s dive in.

1. DON’T! Race to the Bottom:
   When advertisers are feeling the squeeze, upper funnel tactics intuitively seem like the first thing to hit the chopping block. Don’t fall for the trap. In the last recession, 6 out of 10 advertisers who cut brand advertising spend saw revenue fall by 20% or more.

Be genuine and authentic and utilize story-driven ad formats to create positive emotional associations proving your brand cares. Building loyalty will pay off when markets recover.

2. DON’T! Stick with the Standard:
Lower CPMs become increasingly attractive when sales are slow. Expensive, larger ad units become harder to justify when the goal is to maximize impressions and get the biggest bang for your buck. Another trap!

Splashy, high-impact executions work more than twice as hard in capturing visual attention and brand memorability versus standard assets. Go big or go home to accelerate the path to purchase!

3. DON’T! Lose Your Voice:
In times of prosperity, you should advertise. In times of hardship, you must advertise. An average brand could lose almost 15% of its business if a similar-sized competitor doubles its marketing investment.

100% SOV takeover opportunities block out all noise from competitors and make it impossible for brands to go unnoticed, especially in highly coveted, contextually relevant environments.

4. DON’T! Go at it Alone:
Asking for help is hard. Kargo, founded almost 20 years ago, has been a trusted advertising partner helping brands stay relevant, cultivate connections, and drive meaningful sales through the good times and the bad.

When it comes to capturing and keeping consumer attention, we know differentiated ad experiences on high-quality content deliver better business outcomes no matter the state of the world.

Guiding Your Brand Through Economic Instability

At Kargo, we’re happy to act as partners to brands of all sizes during these uncertain times. Our omnichannel advertising solutions can help your brand from strategy to beautiful creatives.

Unfortunately, recessions bring chaotic changes to the marketplace that no brand can predict. However, brands that weather the storm and emerge ready to compete can come out of this stronger than ever. Keep your brand competitive and lean, and don't forget to watch out for the aforementioned common traps that a recession can bring.

Reach out to our team of experts for guidance, and together we’ll assist your brand in managing these challenging times.