Smarter marketing in a time of thrift

When companies take on debt to finance their operations, the rising cost of borrowing significantly impacts how much money they can allocate towards marketing initiatives. With interest rates rising, businesses are burdened with higher costs for servicing new or refinanced debt.

Marketing is essential to any high-growth business, as it promotes brand awareness, drives new business sales, and helps companies achieve their overall revenue goals. However, as the cost of debt rises, companies may need to reassess their marketing budgets to maintain their financial stability.

This can be particularly challenging for smaller businesses that rely heavily on marketing to attract new customers and grow their revenue.

Before cutting or reallocating marketing expenditure, it’s worth looking at where money is being spent and honestly answering some tough questions:

• What’s really driving your choice; vanity or sustainable growth?
• Is your targeted audience real, and do they have a problem you can solve?
• Are your target personae curious about your product category/solution?
• Are you increasing trust or goodwill from prospects?
• Does your activity deliver a sustained or cumulative effect rather than a short-term hit?
• Does your budget allow you to truly compete across a particular paid medium (e.g. display ads CPC)?
• Does your activity build interest or “warm up” visitors before selling to them?
• Do the internal or external people strategising and executing your campaigns really understand your industry and target market?

Paid advertising and advertorials can sometimes be inefficient because they do not always result in genuine engagement or interest from potential buyers. People are becoming increasingly savvy to advertisements and can quickly spot when something is being pushed on them. Additionally, more of us are now opting for ad blockers and skipping through commercials, meaning that the reach and impact of paid advertising is diminishing.

On the other hand, strategies such as content marketing are proving to be more effective, as they involve building trust and relationships with potential buyers through valuable content and authentic partnerships. These methods can result in higher engagement, a longer-lasting effect, brand loyalty, and ultimately, a better return on investment.

SEO can save companies money compared to paid search and display advertising by increasing organic traffic to websites, which can reduce their reliance on expensive paid advertising channels. By optimising websites for search engines, businesses can improve visibility in search results and attract more qualified traffic without paying for each click or impression.

Additionally, SEO can help companies build a strong online presence over an extended time period, leading to increased brand awareness and customer loyalty. Overall, investing in SEO can be a cost-effective way for companies to drive traffic, generate leads, and grow their business.

Organic social media posting can save companies money by increasing visibility on social media platforms without having to pay for each click or impression. By regularly posting high-quality content and engaging with followers, businesses can build a strong social media presence to attract more qualified website traffic over time.

Additionally, organic social media posting can help companies build trust with their audience and establish themselves as thought leaders, increasing brand awareness and confidence from customers and prospects. Overall, investing in organic social media posting can be a cost-effective way for companies to drive traffic, generate leads, and grow their business.

Of course, companies can always mitigate the impact of rising debt costs on their marketing budgets by exploring alternative financing options. For example, some businesses may consider equity financing, which allows them to raise capital without additional debt.

However, the case for smarter investments in marketing apply in all financial climates and following some simple principles can free up working capital for use on longer-term growth strategies, such as product innovation or staff training.

Check out our webinar series, marketing community and, of course, our Fractional Teams services to let us help you make those smart decisions.

Final thought: In a break from the trend, I’ve managed to talk about marketing strategy without mentioning AI, however important it may be to the industry.

…damn... I just mentioned it!