Inflation is rising, and the cost of living crisis is deepening. People are being told to cut down on spending, but how does this work when it comes to marketing budgets?
When considering where to make media cuts, TV should be your first choice. Although all channels are increasing in cost, it’s been reported that TV bears the brunt of rampant media inflation as advertising costs jump 31.2%. (Source: The Drum)
TV has a high media cost and paired with huge production costs, this expensive channel provides limited and unreliable ROI tracking. And wasting money in a recession is never a good idea!
TV as a media channel saw success during Covid - but now the pandemic is over, and less people are sitting around watching TV. Your customers will be out and about, and always with a phone in hand.
So… where should you be spending?
Cuts to your budget will be made regardless, but if you want to use your pennies wisely and drive customer acquisition - Influencer Marketing is your best bet.
Brand activations on social media is a cost-effective way for brands to promote a product or service. There is less budget required and the results are easy to measure. Influencers are an effective way to connect to your audience authentically and if done well, can build brand affinity, loyalty and conversions. In fact, two-thirds of Gen Z women stated that “Social influencers are more important for showcasing brands than the actual brands themselves”.
And if you want longevity for your campaign, you can continue to use influencers in your paid ads. You can obtain usage rights for the sponsored influencer content, instead of spending additional budget and time on ad shoots. On average commissioning creator-produced adverts is 50% cheaper than commissioning a video production house to make brand adverts. The content also performs 40% better, which lowers CPMs and CPAs, by raising the assets’ Quality Scores.
So if you want to reach your target customers and track your campaign success without breaking the bank, channel your spend into Influencer Marketing! For advice on how to do this effectively, get in touch!