Hello!
It is a hot season for us right now. If only the weather were the same. After talking to colleagues in several related niches, we have a few observations to share.
The most common word in planning meetings is crisis. That is how the market is being described. Many people have their own take, but it is hard to dismiss this as subjective: too many agree.
So let us explain what this means for marketing teams and what to expect.
We have been through this more than once, usually because of an external factor. Remember COVID? Or global advertising platforms leaving the market? Or something else?
We have faced it at different stages of business, in different teams and with different products. The pattern is always the same: cuts to promotion budgets.
The first channels to be cut are those with the highest spend. Performance marketing will undoubtedly top that list.
Telegram channel placements, targeted ads and contextual advertising are the first candidates for optimisation. It is certainly a logical decision: save where you spend the most.
So this winter, do not expect messages from clients and stakeholders along the lines of:
We have underspent by 2 million. We need to spend 3 million on reach campaigns before the end of the year.
So what should you do?
You will have to cut the uncertain and experimental activities. That audience test targeting parents of sixth-graders who read travel channels needs to stop. A/B tests of sales-oriented button labels go too. There is no room for such luxuries right now.
What you should fight for on calls are traffic segments as close as possible to the target action.
For example:
- Retargeting on every platform where it delivers results.
- Contextual ads for your brand and high-intent searches should stay.
- Sponsored posts in Telegram channels that deliver predictable results year after year.
Now for the good news
Many teams will discuss budget cuts, and many will decide to stop performance marketing altogether. We see that as weakness.
What does that mean for the strong? Cheaper auctions! At last, your closest competitor will stop buying your branded traffic and the ad space in your Telegram channel, while YouTube channel owners will offer generous placement discounts.
Upsides all round.
Traffic becomes cheaper and highly relevant, your results look good, and people start telling you again how great the advertising is.