Strengthen your marketing during challenging economic periods by leveraging insights into consumer behavior, conducting thorough market analysis, and focusing on long-term positioning.

Economic downturns bring uncertainty and shifts in user behavior that affect markets, forecasts, and the approach and resources dedicated to marketing activities.

Since each recession or economic downturn is unique, marketers often navigate unfamiliar territory.

This article provides guidance for managing SEO campaigns effectively and demonstrating their value, even during recessions, market instability, or significant changes in consumer behavior.

Doing Business During a Recession

During economic downturns, consumers typically cut back on spending and prioritize their expenditures more carefully.

As sales decline, businesses often reduce expenses, lower prices, and postpone new investments. Unfortunately, marketing budgets are frequently the first to be slashed. This approach to cost-cutting is usually counterproductive and should be avoided.

Many clients view SEO and paid search as separate channels, leading to the mistaken belief that SEO can be temporarily paused without significant impact. They might assume the current performance will remain stable even if SEO efforts are scaled back.

However, SEO is one of many channels that may face challenges during a recession. 2009, for example, the entire U.S. advertising market experienced a 13% decline. While radio and magazines saw significant drops of 22% and 18%, respectively, the online segment only experienced a 2% decrease.

The Case for Maintaining Marketing Spend

While reducing costs during a recession may seem prudent, cutting back on marketing efforts without considering how your core customers’ needs are evolving can jeopardize your medium- to long-term performance.

Organizations and trade bodies, such as the Institute of Practitioners in Advertising (IPA), caution against reducing marketing spend. The IPA has publicly advised brands to maintain their marketing investments to avoid losing “share of mind” during challenging times.

Moreover, a decrease or stagnation in marketing spend can be detrimental. In 2024, overall advertising spending in the U.S. is projected to grow by approximately 10%, compared to an average growth of 23.3% before 2020.

Several factors contribute to these spending patterns:

• Market Saturation: Investment levels have reached a point where additional spending may yield diminishing returns.
• Pricing Pressures: Economic uncertainty shifts consumer confidence and priorities, prompting organizations to seek effective marketing without increasing spend.
• Market Consolidation: As smaller or less competitive players exit the market, fewer but stronger organizations remain, increasing competition and reducing overall competition for consumer attention.

Research from sources like the International Journal of Business and Social Science, Harvard Business Review, and specialists from The Economist and Financial Times highlights five key marketing objectives during a recession:

1. Smarter Spending and Investment: Optimize how you allocate resources.
2. Customer Retention: Prioritize keeping your existing customer base.
3. Leverage Competitor Weaknesses: Exploit opportunities where competitors may be faltering.
4. Monitor and Adjust: Track market trends and adjust spending based on segment behaviors.
5. Maintain Minimum Spending: Keep your marketing spend consistent, but allocate it more strategically.

Maintaining and strategically managing your marketing budget can position your brand for more robust performance as economic conditions improve.

How to Keep Your SEO Efforts Going During a Downturn

The prevailing advice is to avoid reducing spending during a recession, which is wise. However, businesses often need to justify their SEO expenditure by demonstrating its tangible impact on their bottom line.

Looking back at the 2008 recession and the recent pandemic, many businesses adapted their digital marketing strategies. We can apply these lessons to maintain SEO efforts during economic downturns without hitting pause.

1. Review Your TAM and Messaging

The Total Addressable Market (TAM) refers to the number of potential users for a product or service. For instance, the TAM for a new smartphone would be the total number of people who own a cell phone. Although TAM has limitations, it helps investors gauge a company’s growth potential.

Both B2B and consumer behavior will shift during a recession based on their economic stability. You may need to adjust your messaging and value propositions according to your TAM. This adjustment should align with your SEO strategy:

• Essential Products: Highlight value propositions more prominently for less economically stable consumers, emphasizing affordability and necessity.
• Luxury Products: Market them as rewards or indulgences to boost morale during tough times.
• Postponable Products: Focus on the long-term financial and opportunity costs of delaying purchases. Ensure visibility and retention strategies are in place.
• Expendable Products: Adjust your local SEO strategy, as consumers might opt for DIY solutions. Build trust and stay visible to maintain relevance.

2. Understand Consumer Confidence

Beyond reviewing TAM, assess consumer confidence within your Serviceable Obtainable Market (SOM) and Serviceable Addressable Market (SAM). Consumer confidence reflects household optimism about financial stability.

Critical sources for macro-level data include the Michigan Consumer Sentiment Index (MCSI) and the Consumer Confidence Index (CCI). When consumer confidence is high, spending on luxury and postponable goods increases. When low, the focus shifts to essentials.

Collect data through surveys and engage with your community to gain insights into:

• Customer frustrations
• Objections
• Financial perspectives
• Market views

Regular discussions with your sales team can provide valuable insights into customer sentiment and market dynamics.

3. Conduct Smarter Opportunity Analysis and Competitor Targeting

During a downturn, businesses aim to maintain market position. This is an ideal time to leverage existing customers and refine competitive targeting. Use SEO to address consumer pain points related to competitor products or services.

Create content that highlights your competitive advantages and addresses competitors’ weaknesses. For example, if your competitor has downtime issues, emphasize the reliability of your service.

4. Position for Post-Recession Success

SEO is a long-term strategy. During a downturn, balance short-term adjustments with long-term goals. Consumer trust and spending usually recover within one to two years after a recession. To stay competitive, maintain visibility and top-of-vertical awareness while focusing on bottom-of-funnel, conversion-oriented queries.

By strategically managing your SEO efforts, you can weather the downturn and be well-positioned for growth as the economy recovers.

Maintaining SEO Momentum During Uncertain Economic Climates

Navigating marketing during an economic downturn can be challenging, as customer spending habits shift and instincts may push you to cut back. However, maintaining an optimized budget and strategic priorities is crucial to continue promoting your products or services effectively.

A recession presents a unique opportunity to enhance customer loyalty and strengthen your presence within your Serviceable Addressable Market (SAM) and Total Addressable Market (TAM). SEO can be very powerful tool in this context, offering immediate stability and long-term benefits by reducing reliance on direct-cost channels like paid advertising.

During these uncertain times, search engines like Google will continue to evolve. Competitors who cut back on SEO efforts and resources risk falling behind, leading to higher costs in the future to regain lost performance and the opportunity cost of diminished visibility.

If you need help, consider checking out our monthly SEO packages and let the experts help you.