Because to the current economic situation, businesses are announcing mass layoffs to raise their profits and reduce spending, with many of them considerably reducing their marketing divisions. Companies could focus their marketing plans on earned and owned media coverage as more practical and cost-effective substitutes for paid advertising, rather than fully discontinuing all marketing initiatives.
Governments around the world have been attempting to stop inflation by raising interest rates, but this has only made the situation worse. As a result, well-known companies across all industries, including Amazon, Goldman Sachs, and FedEx, have announced large-scale layoffs in order to reduce spending.
In today's highly competitive business environment, building a strong media presence is more important than ever. A robust media strategy can help businesses effectively navigate economic challenges by providing visibility, boosting brand awareness, and enhancing credibility. With the right media plan, businesses can reach a wider audience, engage with customers, and strengthen their reputation in the market. A strong media presence can also help businesses weather economic turbulence by keeping their brand top of mind with customers and stakeholders, and demonstrating resilience and adaptability in the face of adversity. In short, building a strong media presence is a critical element of success for businesses looking to navigate economic challenges and emerge stronger on the other side.
Many of the present layoffs are taking place in marketing departments, which have grown significantly across industries over the past few years as a result of the lifting of the global siege. In addition to layoffs, various cost-cutting strategies are being used in marketing, with 30% of advertisers cutting their spending and about 60% of small and medium-sized enterprises either reducing or maintaining their marketing budgets.
But, I think businesses of all sizes should adapt their strategy to concentrate more on earned media coverage rather than reducing marketing spending in order to maintain their brands' public awareness for a fraction of the price of bought media. Here are a few justifications.
Earned And Owned Media Saves A Lot
Because buying ad impressions online or on television is expensive, it makes sense that companies trying to cut costs are pointing at their marketing budget and thinking it needs to be reduced. For this reason, businesses should simply alter their marketing approach to place a stronger emphasis on earned and owned media. When used properly, these media are far more efficient and less expensive.
For instance, all that is required to obtain earned media results is to have someone who is already on your marketing team send a story idea to a journalist or influencer and explain why your company or someone in your C-Suite would be the ideal candidate to shed light on a trending topic as opposed to paying for sponsored content or ad space. Or, to increase engagement and offer you more control over how to spread your message, have a member of your staff create an engaging blog or social media article.
This makes your business a thought leader in the sector and maintains you in the public eye. And the best part is that you don't have to hire a journalist or influencer to write about your business! It is known as earned media for this reason.
Don't Disappear form Customer's Radar
People don't think about your brand if you aren't putting it right in their face, which is one of the reasons getting rid of a marketing staff during a recession is so stupid. And if people aren't thinking about your brand, people aren't buying from your company.
But, it is possible to continue to be seen by your target audience by employing earned media to get your business included or cited in a sectoral journal, a news source, or a blog. Your company will receive the mentions it needs to ensure that the right customers remember you and continue to turn to you for their requirements, even though they may see fewer banner ads from you on social media or TV.
Brand Loyalty And Trust
Gaining new consumers is around five times more expensive than keeping existing ones. Having the trust and loyalty of customers is one of the most crucial criteria in determining whether they would keep buying goods or services from a business during a recession. Being cited or published in a local, national, or even international magazine is the best method to establish this credibility, and that is exactly what earned media coverage is made for.
Going dark in terms of mainstream and social media presence could indicate to clients and investors that your business is unstable and that the office lights might also go out. Due to the fact that consumer confidence in your company's long-term stability will fuel sales and eventually become a self-fulfilling prophesy, trust and loyalty are essential. Don't allow your business fail because of a collapse in consumer confidence on a micro level; keep in mind that the 2008 recession was caused by a lack of consumer confidence on a macro scale.
Prepare Yourself To Face Challenges And Difficulties
Despite all of this, earned media can be difficult to acquire. You aren't paying for a guarantee that your business will be mentioned, after all. Instead, you must earn it, and there will be obstacles in your way. For instance, bloggers and journalists might answer slowly (or not at all), and figuring out how your organization might position itself to come across as an authority in its sector needs ingenuity as well as a lot of time and work. You also need to make sure that your message will be seen and shared naturally through owned media.
The advantages earned and owned media may offer are enormous, though, if your business can persevere and keep looking for chances. These are strategies to help your target market perceive your business as having a solid basis in this tumultuous economic environment.