How Digital Marketers Can Weather Economic Recession - Technofy Digital

How Digital Marketers Can Weather Economic Recession

Will advertising fall into recession? We don’t know. Journalists tend to warn readers by referring to the Great Recession that happened between 2007 and 2009, when the U.S. local and national segments of advertising fell by 21% and 14%, respectively.

Big tech companies produce worrying signals as well. In May 2022, Snapchat’s CEO, Evan Spiegel, warned company investors of a slowdown in revenue growth.

it has been well over 10 years since the last major economic downturn. While predicted to be mild, some economic experts bet there’s a 25% chance for a recession within a year.

Goldman Sachs estimates that risk at 35% (paywall) in the next two years.

Because of economic concerns and predicted stagnation, marketer spending is forecasted to slow down in the second half of 2022 into 2023.

• Marketers should target long-term brand building rather than short-term activations in case of a recession.