By Meagan Martino, Head of Demand for EMEA and the Americas at AppLovin
With the UK headed for a possible recession amid rising energy costs, the cost-of-living crisis and plummeting consumer confidence, brands are bound to experience increased pressure to justify ad spend and deliver results for their clients. While some may take the ‘glass half full’ approach to increasing marketing spend, others will likely tighten budgets.
So, when every pound counts, how do agencies and brands reach as many people as possible, spend efficiently, and measure the results to prove ROI?
Three strategies to consider include capitalising on relationships with highly-trusted publishers, leaning into the channels where customers spend the most time, and streamlining tech stacks to boost effectiveness.
Trust is paramount
Economic headwinds are striking at the same time as fresh privacy changes and regulations. But steps to address privacy concerns can dovetail with a recession-proof strategy to make marketing more effective. Responding to both challenges means building marketing on a foundation of trust.
For example, marketers can optimise for the end of third-party cookies and limited ad tracking in mobile, while increasing ROI, by focusing on media in highly-trusted environments. By capitalising on what digital advertising expert Alessandro De Zanche calls the “funnel of trust” that premium publishers enjoy with their loyal readers, advertisers can ensure they are connecting with audiences primed to believe their message. This can boost advertising effectiveness and make budgets go further while preparing organisations for the deprecation of third-party data-driven targeting.
Positioning advertising strategy around premium publishers with high-quality content and registered audiences can also defuse brand suitability concerns. Allowing paid messages to show up next to misinformation, hate speech, or other brand-unsuitable content can lead to wasted money that is especially valuable during a downturn. Part of this is also identifying the best channels of investment, like gaming, that have continued to be strong sources of entertainment for high-quality consumers despite the economic downturn.
Meet customers where they are
So much of marketing strategy lies in determining how best to reach customers and prospects so that every asset makes an impact. Marketers can shorten the path to conversion and increase ROI by focusing on the channels where customer attention is increasing, as well as buying on channels that are direct-to-publisher, ultimately reducing the reselling and ‘adtech fees’ that get associated with programmatic buying.
Mobile is a good place to start. According to data.ai’s ‘State of Mobile 2022’ report, consumers are spending an average of 4.8 hours on their mobile devices each day, with 90% of that time spent in-app. While mobile gaming, especially, has amassed diverse and devoted audiences in recent years, attention is also diversifying beyond games. According to Sensor Tower, non-game app usage surpassed gaming apps for the first time ever in Q2 2022. This reveals the importance of ensuring every mobile marketer has an array of ideal app categories in which to connect with prospective customers.
In addition to expanding to new channels, agencies and advertisers are increasing efficiency by capitalising on synergies between channels as part of their marketing strategies. For example, a brand boosting mobile or connected TV spend might use QR codes in CTV ads or track increases in mobile app or web purchases to assess the impact of one channel on another.
By capitalising on these inter-channel connections, marketers can turn one and one into three –– an especially valuable strategy when budgets narrow.
Streamline the ad tech stack
In large part thanks to privacy changes, advertising is shifting from an era of maximalism to minimalism. Brands that once collected the maximum possible amount of consumer data, including third-party data, are pulling back to focus only on information that can be tied directly back to consumer consent, such as first-party data. This will save brands money and time when it comes to transforming data into actionable insights –– a boon in a recession.
The same logic applies to the advertising tech stack. Thanks to advances in programmatic, addressability, and the sophistication of data management platforms, ad tech solutions are no longer the fragmented tech stacks they once were. Agencies should take time to reevaluate the tools they are using and consolidate where possible. This can yield significant benefits: Convenience, efficiency, and ultimately ROI.
Regardless of whether the UK is in a recession, organisations of all sizes and in any industry have something to gain by squeezing more out of each pound. Building strategies based on trust, meeting customers where they are, and streamlining data and technologies will help brands boost not only revenue, but also ROI. That’s a result the Chief Marketing Officer and Chief Financial Officer can both get behind.
Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.