May 22, 2020
During a downturn, marketing is often first on the list for budget cuts. It’s easy to see why – unlike salaries, rent, or equipment, the benefits of marketing aren’t so tangible. If you lay people off and stop paying rent, work will start to pile up and you’ll no longer have an office. If you stop investing in marketing, the results are less obvious.
But knee-jerk cuts to your marketing budget during COVID-19 could do more harm than good – as Zavy’s unique ROI measurement tool proves.
Even if budget cuts are necessary right now, drastically reducing your marketing spend shouldn’t be your first choice. Research shows that cutting marketing during a recession puts future profits at risk, and increasing your spend can help you grow your market share. It sounds counter-intuitive, but if you’re bold, a crisis can be an opportunity for growth.
Benefiting from a crisis – particularly one that is causing so much death and disruption –sounds unethical. But we’re not talking about reselling hand-sanitiser or shilling a dodgy COVID cure, but rather reaching new customers and increasing your market share with positive, on-brand messaging.
During COVID-19, online communication has been a lifeline for many. Trapped at home and unable to see friends or loved ones, people have turned to social media to stay connected, get news updates, shop, and share their thoughts. In many countries, people aren’t yet allowed to go shopping or talk in person, so social media are the best places to reach them.
At the same time, as Adnews Australia reports, a staggering 78% of brands put digital campaigns on hold or decreased spending during March and April of this year. Only 15% maintained or increased their marketing budgets. That’s a whole lot of missed opportunities to communicate with customers – and a big gap in the market for those brave enough to increase their spending.
It sounds good in theory, but justifying your marketing spend – or angling to increase it – isn’t always that easy. Your CEO or accountant isn’t necessarily going to be swayed by a study or two – particularly if money is tight.
That’s where Zavy comes in. Our unique ROI measurement tool analyses your social media activity and revenue spend against your key competitors, giving you a concrete and data-driven way to prove that your marketing work is paying off. It’s the best way to bring your results to life so everyone will understand – even the accountant.
Want to know more about measuring the ROI of your social media activity? Learn more about our dashboard and how Zavy works here.