In 2022, consumers faced unique challenges as they continued to recover from the most pressing health and economic considerations of the pandemic and then faced rising consumer goods and services costs while also combatting higher interest rates on new mortgages and loans.
Economic changes have directly impacted the digital marketing landscape, and it is continually evolving to meet the needs of consumers with less discretionary funds to spend each paycheck. In a tight economy, it becomes even more important for ads to resonate with consumers the first time and establish a clear reason for purchases.
For experts like Chris Shihadeh, high-performing ads are the best way to connect with new buyers and subscribers.
The importance of testing only amplifies
Keeping a close eye on test results for A/B ads is important for agencies to connect with the consumer still spending or budgeting their dollars for special items. For ad spending throughout 2022, Instagram stories remained one of the highest-performing platforms, but 2023 could bring different results, mainly as TikTok provides lower ad spending and better refines its ad platform and targeting.
After establishing a strategy that works, Chris Shihadeh recommends sticking with the primary social platform while continuing to invest in other sites with a focus on reaching new customers. It is essential to develop a high-performance, sound strategy and maintain results with an established ad mix and scale as soon as possible to increase sales growth when a product connects.
Money isn’t the only factor
An additional consideration during a recession or other economic events is to remember that not every decline in sales is based on budgets. Sometimes a product may not connect with consumers properly, or an ad could be tweaked to present a good better. As Chris Shihadeh recommends, continue to assess all factors when identifying underperforming product lines or services.
In an economic downturn, many purchasers still invest in products and services, but they want a better investment return. This makes it important to create products and services with focus and spend on those most resonating with consumers and providing the best return. This may mean avoiding promotions for every product and consolidating ad spending around one good or service, particularly when it is a clear winner.
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