Fighting Inflation Through Digital Marketing
Marketing efficiency has never been more important, and improving efficiency is one of the most reliable ways to combat inflation.
Not since 1981 has the US economy experienced inflation at the rates we are experiencing now. (Business Insider, 2022)
Inflation is when the price of goods or commodities rises faster than buyers’ income, as a direct consequence buyers’ purchasing power decreases. To put it simply, inflation is a rise in the general price level. (McKinsey, 2022)
Buyers tend to reshape their spending habits to adjust their budgets to the new reality. Of course, this updated customer behavior impacts the number of sales a business can turn into revenue.
Despite inflation at record highs, the pet industry is thriving and its future looks bright because pet owners are still spending more than ever. And during the pandemic, many people brought home a new furry family member.
A NielsenIQ study surveyed dog and cat owners in April 2022, finding that while the price is always the top driver of pet food sales, two-thirds of these “pet parents” surveyed said if their go-to pet food increases in price, they don’t expect to trade down (Nielsen IQ, 2022)
All in all, companies of all sizes and industries are looking to fight inflation’s repercussions, and here are some efficient digital marketing recommendations to consider to drive marketing effectiveness to combat inflation.
1. Accelerating your digital transformation
If an online presence was optional in the past, nowadays it has become a necessity. According to the 2021-2022 American Pets Products Association (APPA) National Pet Owners Survey, more and more pet owners are shopping online.
Retailers should meet consumers in the channels they are frequenting, whether your online stores, social media, or third-party retailers.
And they must make shopping trips to brick-and-mortar stores accessible and flexible with pick-up and curbside options to reach repeat and potential customers. (Petsplusmag, 2022)
According to a report by Cisco, over 70% of small businesses are accelerating digital transformations.
We now have modern digital platforms and tools at our disposal, and we can use them to keep afloat as prices continue to rise.
These digital platforms and tools can provide you with the attribution capabilities you need to accurately measure the performance of each channel and optimize your marketing spend today while future-proofing the business for tomorrow.
2. Leveraging hyper-targeting
Hyper-targeting is a technique that allows businesses to focus their marketing efforts on specific groups of consumers. By using data about customers’ online activities and interests, businesses can create highly targeted ad campaigns that reach only the people who are most likely to be interested in their products or services.
This approach is essential for modern digital marketing, as it allows businesses to target their advertising dollars more effectively. By narrowly targeting your marketing campaigns your business can save money while still reaching the ideal target audience. To get started you need a few things such as buyer personas, email marketing, customer relationship management software CRM, Meta pixel, and/or Google marketing tag.
There are several key benefits to using hyper-targeting in your digital marketing campaigns:
A. Increased ROI – By targeting customers more accurately, businesses can save money on their advertising while still reaching their ideal audience. Additionally, hyper-targeted campaigns often result in higher click-through rates and conversion rates than traditional advertising methods.
B. Reach more of the right people – By narrowly targeting their campaigns, businesses can reach more of the right people with their advertising messages. This approach allows companies to save money while still reaching their target audience.
C. Improved engagement – By targeting customers who are most likely to be interested in their products or services, businesses can create ads that generate more customer engagement (such as clicks, likes, and shares).
3. Maintaining a smart marketing budget
These are some examples of how experts approach their marketing efforts to get the highest return from their spending.
A. Use complementary strategies. Rather than investing in two completely different tactics, you can invest in two tactics that naturally complement each other.
For example, content marketing and SEO are two strategies that could feasibly be invested in separately. Still, if you invest in both of them, each will help the other see better results.
In this case, the content will give you more opportunities to build relevance for your target SEO keywords, and SEO will drive more traffic to your content so it gets more views, shares, and conversions.
B. Repurpose your material Every marketing or advertising strategy you use will demand some type of core content or material.
For example, in social media marketing, you’ll need short headlines or updates and on-site material to link to; every ad you create will need a central message and a call to action.
If you create new material every time you have a marketing need, you’ll end up in a constantly demanding cycle of creative effort. Instead, you can recycle content from one medium, and reuse it in other applications in the future.
ReelPaws is here to help you invest wisely in your company's digital marketing efforts.
We bring together top-notch marketing minds, serious commercial photography and video production capabilities, and pet expertise, all under one roof. Reach out through our website to find out how ReelPaws can help your brand!