Reduced Marketing Budget – What You Should NOT Save On.

Due to the Corona crisis, many companies run into financial bottlenecks.

But not only the personnel costs currently have to be reduced, but also the quotas for marketing and communication measures …

According to a study by the Federal Association for Industry and Communication, the marketing budgets in companies have been cut by an average of 38 percent . 

This presents many marketing decision-makers with the challenge of prioritizing. In the past few weeks we have exchanged ideas with customers from various industries to find out which measures are top priority for them. We have summarized the most important findings in this blog article. 

Shift to online business even after Corona?

The spontaneous store closings forced many retailers to expand their e-commerce business overnight. There are various solution models from provisional Instagram sales to fully functional online shops. A successful example is the newly created Mono Concept online shop , a Hamburg store for urban fashion.

Many are currently concerned with the question of how relevant the digital business will be after the reopening of brick-and-mortar retail, or much more: whether online retail has gained sustained popularity through Corona. 

There are different forecasts for this. It is very likely that many of the products sold that are currently experiencing a sales spike (e.g. computer games, sporting goods, clinical thermometers, etc.) will be ordered less after the crisis. But what about products and services for everyday use?

A survey by the showed that clothing and electronics in particular could be ordered more often online than before the Corona crisis. In return, the respondents want to buy consumer goods such as groceries, drugstore items and medication more frequently in stationary retail. 

According to a study by Global Web Index, the crisis is also having a massive impact on digital media consumption. Over 80 percent of the British and US Americans surveyed stated that they used more online content, especially TV streams and videos. Put simply, online demand is rising above all for luxury goods such as consumer electronics. 

How do marketing managers react to the crisis?

As already mentioned, many companies are currently in a kind of cautious waiting position when it comes to planning marketing activities. Others, on the other hand, do not adapt their measures enough to the situation. 

Of course, companies need to be particularly careful about their spending these days. If the employees are on short-time work, it is also impossible to control your marketing activities as usual. So what can you do as a marketing decision maker?

1. Concentrate on a selection of effective marketing tools!

Effective means that you can assign a very specific goal to your campaigns, for example increasing sales of a certain product. Content marketing is a great tool for gaining customers in the long term, but it also takes a lot of time and commitment. 

What you need now are clear advertising messages in the form of SEA and display ads as well as social media and YouTube campaigns that target conversions. Discount campaigns are also suitable for increasing sales in the short term. 

In addition to classic advertisements, there are also collaborations with larger accounts that promote your product (keyword: influencer marketing). Webinars are also an increasingly relevant tool for reaching potential customers. The idea behind it is to attract people with interesting content (e.g. a free demo, a tutorial or a keynote) in order to be able to make them a sales offer afterwards. All of the above options are also a great way to activate your existing customers.

2. Advertise on the right channels

Even the best designed campaign is of little use if it is played in the wrong place. First and foremost, you should therefore ask yourself who you want to reach with your ad, webinar or discount campaign and where these people are most often on the Internet. 

If your product is intended for a very young target group, video ads on Tiktok, Snapchat and Twitch are ideal. YouTube, Instagram and Facebook also work with an older audience. You can fall back on LinkedIn and Xing if you offer a professional service in the B2B area. Classic SEA ads work in every target group, but are also more complicated to control. If you don’t have a SEA specialist in your team, we therefore recommend advertising via your social media channels -We would be happy to advise you on this in a personal conversation .

3. Intensify collaboration with sales

As already described in point 1, it is currently important for most marketing managers to concentrate on targeted conversion campaigns. This requires close cooperation with sales, who transform the leads you have generated in online marketing into paying customers. 

An example: You are designing a webinar, an explanatory video, Live talk, etc. on a topic that might interest your customer base. For example, a manufacturer of outdoor products could make a video about which products are original equipment for hikers, campers or water sports enthusiasts. 

You are promoting this video through an online ad on one of the above channels. In order to participate in the webinar, users have to register with their email address. This data, in turn, is valuable for your sales staff, who now have a concrete starting point to reach your leads with email campaigns (e.g. product recommendations, links to blog articles, special offers, etc.). 

The example shows how important it is that marketing and sales network with one another and that regular dialogues lead to the success of their measures.

4. Optimize your online shop

Once you have mastered the first three points, your customers will sooner or later find themselves on your website or online shop. 

Congratulations – an important part is done! However, anyone who thinks they can rest now will unfortunately be disappointed. Because if your glossy campaign is not followed by an at least equivalent web presence, the chances of your sales are bad. 

Of course, the success of an e-commerce strategy depends heavily on the product in question. While it may be sufficient to integrate a shopping area on Instagram for low-priced lifestyle products, for example, you should rely on a reputable website for high-quality goods and services. Such is characterized by a clear structure as well as trust-building elements (test seal, References and customer reviews). 

Testimonial videos can also help strengthen your brand’s credibility. The quality of advice is no less important online than in local business. This includes meaningful product descriptions, high-quality photos, possibly product or explanatory videos, FAQs and of course contact forms. Many of these elements can be implemented with limited financial resources. 

All it takes is your diligence and willingness to look at your website from a customer perspective. FAQs and of course contact forms. 

Many of these elements can be implemented with limited financial resources. All it takes is your diligence and willingness to look at your website from a customer perspective. 

FAQs and of course contact forms. Many of these elements can be implemented with limited financial resources. All it takes is your diligence and willingness to look at your website from a customer perspective.

Conclusion

Whether it’s a crisis or not – marketing with a small budget is and will remain a challenge. Nevertheless, we believe that you can increase your sales even with limited resources. We also used the crisis to pursue new, experiential marketing approaches. In our opinion, it is important to have a precise analysis of the target group and distribution in the appropriate channels. You should also put your website to the test before promoting your products or services. If you are thinking of using video ads, we would be happy to be your contact!