Advertising during COVID-19 and the importance of a Marketing budget
The effects of the Covid-19 outbreak are weakening both consumer confidence and spending. It’s hard to stay calm during this time and you may be looking to save… But as business owners, this is not the time to cut the costs of advertising completely. So how do you safe guard your business from Covid-19? Here is what we know.
Marketing will need to be re-looked as the consumer behaviour has changed. Digital Marketing is being consumed at a rapid pace and social media is on the increase. Communities are standing together, and so targeted marketing is key.
How to Manage a Marketing Budget
Have you considered Digital Marketing as an option to curb the effects of decreased sales? Secondly, do you have a marketing budget? And if not, why not?
Without a marketing budget, expenses could add up detrimentally as nothing is being measured and controlled. Now more than ever you need to be watching expenses… You should also be avoiding unnecessary spending for your business while still ensuring growth.
Developing a marketing budget is one of the best things you can do for your business, and yet business owners are unsure of how much to spend. Your marketing budget should be between 5% – 10% of your revenue or forecasted sales for the year. So, it goes to say that if your predicted sales are showing a decline then the first place to cut spend is on the advertising budget.
It has been documented that brands who increase, or at least maintain, advertising during a recession, or in this case COVID-19 outbreak, while competitors are cutting back, will improve market share and get a great return on investment at lower cost than during good economic times.
If you have to cut back on your marketing budget, try to maintain your reach and frequency through targeted digital advertising, which is more cost effective and measurable. If you are serious about growing your business, you have to set yourself a marketing budget. This will help you remain top of consumers’ minds during a recession to build loyalty and trust amongst your followers.
Ultimately the current situation is unavoidable, as is the effect it will have on you, your business and your target market. However, not cutting back entirely will produce far better results in the long run and leave you in good stead with consumers and business partners alike.
READ MORE: Online Usage Surges, how should you respond?