Page 5 - NBIZ Magazine February 2023

An article from Analytic Partners additional data from Vaile (1926) Warden believed looking ahead pro-
published in October of 2022 revealed regarding the 1920-21 recession. vides a competitive advantage during
that during the last recession, 60% Specifically for small business the next 12-24 months.
of brands (big businesses) that had owners, organic resources such as Selling is another door to open.
increased media expenditures realized SEO are great for marketing efforts. Sometimes the desire to spew a sales
greater return on investment (ROI). Warden reinforced the necessity to pitch will close the door even faster.
Those same brands that invested “dive deep” into existing marketing Regardless of industry, the goal of
in paid advertising secured a 17% results and focus on those areas that selling is to EARN the sale not make
increase in incremental sales. deliver better results. Furthermore, a sale. When one earns a sale, he/she
Another survey conducted by
Statista of global brands indicated
that 75% of the respondents indicated
that the 2023 economic downturn
would influence their media (market-
ing) budget. Additionally, four out
of ten of those same global brands
responded that their marketing
budgets would remain the same as
in 2022. However, approximately
three out of ten intended to cut their
marketing budgets.
Again, the question during down
economic times: is it wise to close
the door of marketing budgets from
advertising expenditures to general
marketing expenses?
Statista provided some addition-
al insight to answer this question.
Those global brands that decided
to maintain or increase marketing
budgets during an economic slow-
down realized greater increases in
market share. Another interesting
side fact was those global brands
that employed humor during
COVID, turned off about 40% of
their consumers.
In an interview with Andrew
Warden, Chief Marketing Office of
Semrush, he shared his opinion based
upon past marketing results specific
to marketing ROI in a down economy.
Warden agreed that many businesses
during a recession discarded paid
advertising budgets. He then suggest-
ed this may not be the best marketing
and consequently financial strategy.
Warden cited the past recessions
of 1920, 1990, and 2000. Those firms
that continued their marketing in-
vestments gained a minimum of 10%
over their competitors. He further
stated that for those risk-willing
companies, “an economic downturn
is the best time to invest more in paid
advertising.” To further justify his
statement, Warden provided some

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