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It is clear that marketing's future looks grim, at least for the short term.
We could experience a global recession, for example, because the Federal Reserve keeps increasing interest rates. This has caused businesses to reduce their spending.
Particularly on the advertising front.
Take a look at these earnings calls by advertising giants. Alphabet's total advertising revenue increased only slightly, while YouTube dropped by around 2%.
There are large pullbacks in certain industries. There has been a decrease in crypto, mortgage, and insurance spending, as well as gaming advertising spend.
It's worse for Meta. Their average revenue per user dropped to $9.41 from $9.83.
They also said that their Q4 revenue, which is mainly from advertising, was lower than expected with a range between $30 and $32.5 billion.
Snap was similar to other online advertising platforms. However, Pinterest experienced a much higher growth rate of 8% per year than analysts anticipated.
However, advertising is experiencing a slowdown regardless of which platform you use.
Let's now dive into the bad news. Then we will look at the silver linings and how to adapt. There is still hope. You can do well in this market.
Unsaved
Marketing is moving in a fast downward direction. Although I am not an economist, most of this is due to external factors that we cannot control, such as rising interest rates and supply chain issues, increased oil and energy prices, real estate issues around the globe, and, worst of all, war.
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The S&P 500 is down 18.67%, which means that companies have lost a lot of cash .
Think of it this way: The market capitalization for the 500 companies in S&P 500 is 30.12 trillion dollars.
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The market capitalization for the S&P 500 was 40.36 trillion dollars in December 2021. This is a loss of approximately 10 trillion dollars.
It's important to remember that, based on the stock price today, Apple, Amazon Google, Facebook and Microsoft wouldn't exist.
Companies will cut their spending when the market is down. In a bad economy, marketing is often the first to go.
Many people lose their net worth when companies' value falls. Only 43% of Americans own stocks.
When people have less money, they spend less. It has already begun to slow… If you look at the data from the first half (inflation adjusted), spending increased by 1.5%, compared to 12% last.
What about marketing?
Here's what's interesting…
NP Digital works with all sizes of companies and can therefore see data from small and medium enterprises as well as large businesses.
We have offices and staff all over the globe, including in Canada, Brazil and Germany.
This, combined with the close collaboration with major advertising platforms and tools such as Ubersuggest which tracks millions of domains, allows us to see a lot more data and trends.
These are the three main trends that we see (remember, the data below is based on what we can track and observe as we don’t have data for the entire web or a large portion of it).
Trend #1 – Ad costs are falling
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Global advertising costs have fallen by 4%. While some industries, such as real estate, have seen a greater drop in their costs, others, like B2B SaaS have not. Our clients have continued to optimize for lifetime value, so we aren't seeing much of an increase in their advertising costs.
This is due to businesses cutting back on spending and many sectors like real estate not having as much demand last year.
Trend #2 – Buyers aren’t converting at the exact same rate
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Conversion rates aren't as high as they once were. We have seen a drop in conversion rates of 7.13%.
Remember that different websites may have different conversion goals. One website might be focused on leads, while another site may be focused on signups or a purchase.
Other factors can also affect conversion rates, such as increased prices from companies due to inflation, shipping costs and delays in supply chains.
Oder conversion rates are lower because people don't spend as much due to losing their jobs.
Trend #3 – Companies fear the unknown
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Some companies are cutting back on their marketing budgets because they fear the future.
We are seeing companies shifting their budgets to digital marketing, as it is easier than traditional radio or TV advertising.
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We don't manage the traditional budgets of our clients. Instead, we manage the digital side. Companies will spend money on digital marketing in any economy.
Marketing
We see a lot of data, as I said earlier.
We have observed a pattern with companies that are growing this year (at least the ones we work with).
To be clear, I am referring to companies that generate more revenue and profit.
These companies also take advantage of the current economic environment to double down on all aspects of their business and not just marketing to increase market share.
What are these companies doing in the economy?
- Conversion optimization 83% of them have increased their conversion rate optimization. You can increase sales if you can convert more visitors into customers by using copy, images and products. Legion is a great example. Their conversion rate optimization will allow them to grow at around 40%, whereas many of their D2C competitors have fallen or are declining.
- Influencer Marketing 49% of respondents have increased their influencer marketing budgets, or even started influencer marketing. Influencer marketing rates have fallen. You can also convert well if you target micro-influencers who have your target audience. They are usually cheaper and can generate more revenue. To really scale up, you need to have thousands of them (not hundreds).
- SEO-SEO is a long-term investment, but it can provide a huge ROI. Only 2% have reduced their SEO efforts in the past year, according to our clients. 98% of them have either increased their budgets for SEO or maintained them at the same level.
- Global expansion Adding new markets to sell your products or services in is a great way to increase revenue. 19% of the companies we work with are expanding into new markets. This increases revenue generation opportunities and you'll discover that marketing in many regions is cheaper than the U.S.A. or U.K. While you may not generate as much revenue from these areas, the ROI tends be higher than what we're seeing.
- Email Marketing It's rare to work with a company who doesn't collect emails or does email marketing. It's absurd that companies think that email marketing is if you only send promotional emails once in a while or a few educational messages… There is more to email marketing than that. Segmenting your lists and sending different messages to different people is one example. Optimizing your open- and click rates. 77% of companies that we work with grew in the past year increased their email marketing efforts and fine-tuned campaigns.
- Omnichannel Marketing There is both multi-channel and omnichannel marketing. We worked with 100% of companies that focused on omnichannel and grew. This means that omnichannel marketing is a combination of all channels. They also use the learnings from each channel to optimize others. Multi-channel marketing is different than multichannel marketing, where each channel sits in its own silo. TikTok is a huge success in ecommerce… even channels like Snap and Pinterest, Reddit, Reddit or Bing that people don’t talk about are effective too.
Conclusion
It doesn't matter if the economy isn’t exactly where you want it, it doesn’t mean that you can't grow.
Even if there are headwinds in your industry like the mortgage industry you can still make changes that will help the company to be more successful when the economy recovers.
Also, think outside of the box. Do not spend all your energy on the news. While it is smart to keep up with the latest, the majority of your time should be spent finding solutions and ways to grow.
You can contact my ad agency NP Digital if you need my assistance.
What are you seeing in the economy?
Frequently Asked Questions
What eCommerce Marketing Strategy Do I Need to Follow?
There are three types of eCommerce marketing.
- Direct marketing
- Search Engine Optimization, (SEO)
- Social Media Marketing
Direct marketing refers to sending emails directly towards potential buyers. These emails could contain discounts, coupons, and other special offers. This type marketing aims at building customer loyalty and trust.
Search engine optimization involves improving the ranking of your site in search engines like Google and Yahoo. If your website ranks near the top for searches related to keywords, you will get more traffic.
Social media marketing includes websites like Twitter, Facebook Pinterest, Instagram, YouTube, and Instagram. To connect with your audience. It is easy to use and free of charge.
Each method has its advantages and disadvantages. SEO takes time and effort, whereas direct marketing requires little effort. However, if you only focus on one method, you won't see the full benefit of eCommerce marketing. We recommend combining multiple types of marketing.
For instance, you could send emails promoting your products and rank highly in search engine results. You could also advertise through social media and then link from that page to your website.
There are many ways to market an eCommerce store. Choose the best work for your business and implement them consistently over time. Good luck!
These are 3 examples internet marketing.
Internet Marketing encompasses all activities online that are designed to promote products or services. Internet marketing encompasses email marketing, social networking, search engine optimization, pay-per click advertising (PPC), website design, and pay-per view.
It is important to understand that these terms don't necessarily imply that you need to spend cash to make money. There are many ways to make income without spending money. You will get a better return on investment if you put more money into each method.
Email marketing is the most popular form of internet marketing. This involves sending emails to potential customers informing them about your company and the latest offers.
Another popular marketing method is social media. Social media sites such as Facebook, Twitter, and LinkedIn enable users to share information and interact with friends and family. These sites provide businesses an excellent way to communicate with their clients, increase awareness and build trust in their products or service.
Search Engine Optimization (SEO), which is a technique that increases websites' visibility on major search engines, can be used to boost their visibility. Webmasters can increase their site's traffic by improving the quality and quantity relevant backlinks.
Website Design is the art of designing a website that looks attractive and functions well. Website designers determine the style and layout of a website. Website designers also make sure the website conforms to technical specifications and meets accessibility standards.
Advertising via Pay Per Click (PPC), where advertisers bid for keywords relevant to their products. Advertisers get paid when someone clicks on an ad. PPC ads often appear at either the top or lowest search results pages.
What are the different types of marketing?
Marketing is divided into four categories: Traditional Advertising, Direct Mail, Public Relations, and Digital Marketing. Each has different objectives, and each should be used for specific purposes. This way, you can use them together to reach your goals.
Statistics
- From 2020 to 2022, eMarketer predicts that digital marketing will grow by 36% and take up 54% of marketing budgets! (marketinginsidergroup.com)
- Many experts recommend you share 20% of your promotional content and 80% of other valuable content you find. (marketinginsidergroup.com)
- Companies that use personalization are seeing revenue increases ranging from 6-10%. (blog.hubspot.com)
- This allows us to deliver CPCs that are 80% less than average and CTRs 4-5 times higher than average. (marketinginsidergroup.com)
- A poll earlier this year found that 14% of older Gen Z's had bought an item in the previous six months based on an influencer's recommendation. (influencermarketinghub.com)
External Links
blog.hubspot.com
youtube.com
neilpatel.com
moz.com
- SEO Learning Center, Moz
- [Case study] How we ranked #1 in a high-volume keyword in under 3 months – Moz
How To
Top 10 Affiliate Marketing Strategies in 2022
Affiliate marketing is one of the most popular online advertising methods marketers use today.
It allows companies to promote products without spending any upfront costs. Instead, affiliates get a commission for each user who purchases the advertised items.
There are two main types: performance-based or cost-per sale. Affiliates who are performance-based get paid when a certain amount of sales occur. Affiliates earn a fixed amount regardless of whether they sell anything.
In this article, we'll go over the top 10 affiliate marketing strategies for 2022. Each strategy will be discussed and examples of successful campaigns provided.
#1. 1. Create a brand loyalty program
E-commerce sites are increasingly adopting loyalty programs for brands. These programs allow customers to earn points every time they shop on a website.
These points can be used to redeem for special offers, discounts, rewards, and other perks.
Amazon Prime, for example, gives members exclusive deals and perks.
Amazon also has a referral program called Associates. This program lets merchants refer shoppers to Amazon and receive a percentage of the revenue generated from those referrals.
#2. Use Social Media to Promote Products
You can advertise products on social media platforms like Facebook, Twitter and Instagram.
Advertisements can be run by companies to directly target buyers. Facebook, for example, allows advertisers to target certain groups of people based upon their interests and demographics.
You can target customers who live within a specific distance from a store.
Twitter is another platform that allows companies reach targeted audiences quickly. Companies can send followers tweets, answer questions, and share their content.
Instagram is similar in concept to Twitter, as it allows brands to interact directly with consumers. Instagram, however isn't able to allow businesses direct messages.
Instead, posts are automatically displayed on followers' feeds.
Pinterest is yet another social networking that allows businesses to communicate with their customers. These connections include the sharing of images, asking questions, and answering customer inquiries.
#3. Offer Special Discounts to Influencers
Influencer marketing is an effective tool for increasing brand awareness. Brands can offer incentives to influencers for sharing promotional material about their products.
This partnership may include giving influencers free products to try or review.
These partnerships do not only include product reviews. Brand ambassadors are also possible for influencers.
Brands can use influencers as hosts to give away products, offer opinions, answer queries, or simply display their products.
#4. 4. Create video ads
Video ads are increasingly in demand. Video ads are increasingly popular online. This is especially true since smartphones and tablets have become more mainstream.
Advertisers may use video ads as a way to get attention and persuade viewers of their products to click on the links.
YouTube is one of most important websites where advertisers are able to place video ads. YouTube allows advertisers to upload up to 60 seconds of video.
Google AdWords can also be used to place video ads. Google uses keywords as a way to match ads with relevant searches.
#5. Run Mobile Campaigns
Mobile apps are increasingly popular. Mobile apps allow users to download and play games, listen to music, read books, or watch movies.
People spend hours reading books, playing video games, listening or watching movies on their smartphones.
Mobile apps are a great way for businesses to get more visitors to their websites.
Apps are available for download on smart devices like iPhones, iPads and Android phones as well as tablets.
App stores are available for Apple iOS, Google Play, Windows Phone, Blackberry OS, and Kindle Fire.
#6. #6.
For selling physical goods, shopping carts can be a very effective way to do so.
Customers can add items directly to their shopping cart.
Online shopping carts are growing in popularity. Some online retailers like eBay allow customers to create accounts and browse product listings.
Amazon and other online retailers like it integrate shopping carts in their websites. Customers can order the items they desire and make payment right away.
#7. #7.
It is a great way of attracting new customers.
When a company launches a new line of products, it usually sends out press releases announcing the news.
The release may contain information about the new line's features, pricing, availability, and more.
Once the launch is complete, the company will be able to continue marketing its new products.
#8. Develop Cross-Channel Marketing Programs
Cross-channel Marketing refers to marketing efforts on different channels.
For example, cross-channel marketing could involve sending emails to subscribers via email lists, promoting products on social networks, and running banner advertisements on search engines.
Many companies combine multiple channels in order to increase exposure.
Some companies, for example, sell their products in brick-and-mortar stores. These companies also sell products online.
Companies sometimes use both channels simultaneously in order to increase sales.
#9. #9.
Data analytics can help companies increase their profits and improve their business operations. It involves analysing data collected from diverse sources to identify patterns or trends.
Analytics can help you identify problems, assess current practices, predict the future, and make suggestions for improvements.
Analytics tools can be used to collect data from many sources such as web servers, databases, applications, and other websites.
These tools can help companies learn about their customers, and to better understand their behavior.
#10. #10.
Every business must be customer-oriented. Customer satisfaction is key to any business. Customers are more likely return for additional services if they feel satisfied.
A satisfied customer will be more likely to recommend your products.
Satisfied clients are less likely than others to complain about poor service.
All businesses must improve customer satisfaction.
This can be achieved by providing exceptional customer service.
Employees must respond quickly to customer inquiries and address issues promptly.
Offer quick shipping options so customers don’t have to wait too much before receiving their orders.
It is important that your website is simple to navigate.
Your site must load quickly and provide clear instructions.
Be aware that not all customers are the same.
Customers might require extra help, while others will not need it.
You should therefore tailor your customer service policies to meet individual needs.
This ensures everyone receives top-notch service.
You can find our guide here to learn how you can start an affiliate marketing program.
This article will cover everything you need to know when starting an affiliate marketing program.
You now know how to create an affiliate marketing campaign that works. Now you can start building relationships with bloggers and publishers.
This will give you experience and credibility.
Then you can use this knowledge to increase your earnings
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By: Neil Patel
Title: 2023 is Going to be Bad for Marketing, But There’s Hope
Sourced From: neilpatel.com/blog/2023-marketing/
Published Date: Mon, 31 Oct 2022 13:35:52 +0000