Marketing in a higher interest rate economy requires a scalpel rather than a cleaver

We’re all hearing that our strong economy needs to be slowed to ease inflationary pressures. Interest rates are rising and some marketers are being told to cut their advertising budgets. This makes no sense.

The economy has been strong and company revenues have been very buoyant since the peak Covid period. However, the RBA wants to slow this spending and sometimes marketers may overreact.

In early 2023, The Australian Association of National Advertisers (AANA) found that two-thirds of their member companies are holding on to their budgets. Experienced marketers know that, historically, brands which maintain or increase their marketing spend in any downturn will subsequently come out with better market share. If you maintain your advertising expenditure and others pull back, you’ll grow your market share.

When marketing is cut indiscriminately, you cut off your marketing voice, which is a mistake.

The wise marketers take a scalpel rather than a cleaver to the marketing budget. They understand consumer behaviour and book media that focus on behavioural targeting rather than maximum audience reach. These marketers cut their broad-based marketing and focus on media platforms that are highly targeted and specific to consumers’ current needs.

Niche magazines and websites, social media, and delivering messages to active audiences who choose to interact with these platforms is where smart advertisers go to in difficult times.

At Universal Media Co we are witnessing and hearing how advertisers are becoming more focused on who they connect with, rather than how many they reach.

According to Universal Media Co’s Publisher, Emma Perera, “We are still seeing subscriptions to our eNewsletters grow, our organic digital traffic has risen, and our content engagement rates are doing better than ever. Advertisers using these assets are finding it inexpensive, measurable and effective in reaching consumers focussed on their needs.”

Digital Producer, Alex Dalland, adds, “Recently we’ve had enquiries from our advertiser clients who want help with the writing of their content marketing. We’ve had 30 years of experience in this field. The smart advertisers know content is one of the most effective marketing strategies available when written compellingly with regard to the target audience and in a format optimised for both users and search engines. It works brilliantly on our platforms as well as the platforms of our clients.”

If you’d like ‘scalpel’ rather than ‘cleaver’ solutions, contact Martin White, Universal Media Co, on 02 9887 0642.

Words by Martin White