The Bank of England has recently issued an official statement addressing the upcoming issue of recession in the United Kingdom in Q4 2022. British bank shared the news with the government as well as all its inhabitants while issuing a revised forecast for inflation that may hit the country in the coming years. The Bank of England has estimated that consumer price inflation is mainly the result of a hike in price rises in energy, food, and physical goods that hit the country in June by 9.4%.
As compared to its previous forecast of June 2022, the recent forecast shows 13.3% inflation forecast in Q4 2022, which is a significant increase compared to the previous figures. The main driving force behind an unrealistic increase in the inflation forecast rate is because of the energy price cap. The economic analysts in England have estimated that the energy price cap may rise by more than 70% in October.
In addition to that, it is also expected that this recession is expected to persist for a much longer period than the previous forecast. Exceptionally high inflation and rising interest rates are expected to have a significant influence on the economic activities in the United Kingdom. Once the energy price cap is announced on the 26th of August, the country will enter recession by October 2022.
The alarming situation is for the British businesses who have been struggling to manage their business operations, including retaining their loyal customers during coronavirus, but now a new recession is going to hit the British businesses, a recession that will last more than 5 years. British business owners will be forced to remodel and re-think their business strategies, especially in digital marketing, which plays an important role in overall customer awareness and engagement (Augstein, 2022).
Impact of Covid-19 on Digital Marketing
Although businesses have already been utilising online channels including social media platforms to advertise and promote their products, due to the coronavirus the importance of online marketing strategies has increased. This has happened because of a shift in consumer behavior especially their usage of the internet and online platforms for getting information and purchasing their favorite products. Coronavirus has affected digital marketing in the United Kingdom in the following ways:
New consumers persona
Businesses operating all over the world, including the United Kingdom, have to analyse the demographics and psychographic traits of their potential consumers from a new perspective (Online Engagement Habits). To attract these “Sofa Surfers” businesses were forced to introduce online products and services, including the addition of innovative client engagement techniques on a variety of digital platforms to keep their potential clients informed, engaged, and aware of their brands (Kathayat, 2020).
Flexible marketing options
Instead of businesses following rigid and long-term marketing or promotional strategies, coronavirus has forced them to adopt flexible and short-term promotional tactics that they can change after two or three months to synchronise them with the changing habits of online consumers. The overall lifetime of a marketing strategy on digital platforms has decreased from 6 months to 1 year to two or three months, even if it can go below these numbers.
Webinars and webcasts
The trends of webinars and webcasts as a marketing tool have increased due to covid-19 impact. Stats show that more than 80% of users prefer watching brand videos rather than reading their blogs or scanning through their social network text updates. This is what has led businesses to adopt innovative webinars and webcasts to create long-lasting relationships between customers and their brands (Olsson, 2022).
The Benefits of Digital Marketing During an Economic Recession
Potentially reduced advertising costs
Digital marketing costs less than traditional advertising because it doesn’t rely on print or broadcast media. You only pay for what you need, which means there are no wasted ads or expensive unused inventory sitting around. Digital advertising also allows you to track how effective your ads are so that you can make adjustments as needed.
Scoop a larger market share
Digital marketing allows you to reach a large audience, no matter where they are located in the world. You can target your message based on the location or interests of the people you want to reach through online advertising campaigns such as Google AdWords or Facebook Ads. This gives you more control over who sees your messages and how much money you spend on them.
Solidify your brand
Digital marketing allows for the creation of content that can be shared across multiple platforms. It’s an opportunity to connect with customers directly and efficiently, allowing you to create a strong connection with your audience. The more you build trust with your audience, the more likely they will pay attention to your content, interact with your brand and return for more.
Learning from Smart Business Moves Amidst Recession
They have always been the company that was willing to invest during tough times. Even when the dot-com bubble burst in the early 2000s, Apple continued to invest in new products and services. This ethos has helped Apple weather many storms and become stronger on the other side.
American Express (AMEX)
They have adopted the online strategy of creating a virtual community around its brand. American Express uses open forums to inform and engage potential clients by inviting well-known authors from a variety of industrial sectors. That resulted in the creation of a content-rich mega-site which gained popularity among people looking out for an innovative virtual learning platform.
Dollar Shave Club
They are another addition to the innovative business strategies that have utilised fun as a marketing tool in a global virtual community. Dollar Shave Club’s “Launch Video” was a big hit due to its innovative online marketing tactic. The video has been viewed 24 million times and now has been purchased by Unilever for $1 billion. Hypo growth, the company continued with its cheeky content that added fun to the life of viewers and gained magnanimous popularity at the global level.
Digital marketing is an essential tool for businesses during a recession. By using various online strategies, businesses can reach more people while saving money. In addition, digital marketing allows businesses to track results and adjust their campaigns accordingly. So if you’re looking to market your business during tough economic times, be sure to consider digital marketing. It could be just the thing you need to stay afloat.
Other Social Media Marketing Resources
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Top 10 Mistakes Businesses Make on Social Media: https://metricconnect.co.uk/top-10-mistakes-businesses-make-on-social-media/
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