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Last week, we saw posts like the one above 👆  in many media buying forums and Twitter. Things were bad, but not this bad, and Facebook IS still working.

Everyone has noticed how current market conditions and macroeconomics are causing costs to rise, especially with fuel, and unfortunately this is showing no signs of slowing.
Costs are expected to continue to rise across the board, causing a ripple effect for businesses and putting the pressure on digital advertising strategies.

Last week saw unstable performance across digital marketing platforms, with a huge spike in Facebook CPAs.

For a lot of businesses, the first instinct will be to cut marketing budget until the dust settles. However, we suggest that you DON’T do this! With limited potential customers up for grabs, brands will be competing even harder to close sales and leads. Whilst cutting budgets may seem cost efficient, you will see a loss of market share in the future which will impact you long term.

So what should you expect?

We believe that as costs continue to increase, there will be a greater reliance on digital marketing as customers look to compare prices to hunt for the cheapest available options. Consumers will continue to buy things, and whilst they are likely to be price conscious, they are also looking to get the highest value for what they are purchasing. Therefore, your business does not need to solely rely on pricing to be able to compete in the current market. Your added bonuses and USPs, whether it be delivery, quality, customer service or loyalty schemes – are important to the customer looking for the absolute best value for their money.

Impulsive purchase behaviours will likely shrink with decreased disposable income, so expect to see lower AOVs and CVRs and plan your strategy around this. We expect that this decreased disposable income will cause a “delayed impact” on consumer behaviours as they notice their savings shrinking.

What can you do?

Our top recommendations for navigating increased costs in your digital strategy are:

  1. Closely monitor and control your stock levels and logistics to avoid customer disappointment. Keep customers informed if delays are expected or a product is out of stock – customer service is key!
  2. Prepare for Christmas early! We know it seems too soon to be talking about the festive season in March, but customers will be acutely aware of their Christmas budgets this year and many will not be able to afford all of their presents, food and decorations within one monthly paycheck, meaning the buying season is going to be extended. So get in with the early planners and be ready with discounts, gifting and festive messaging much earlier this year.
  3. Plan for change. Do not assume that what has worked well for you in the past will get you the same results this year. Be prepared to change your strategy to optimise your performance.

If you would like to know more about Facebook advertising, please get in touch today.


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