Let’s face it…
…the impact of this pandemic has not been good.
In the US alone, over 30 MILLION people have filed for unemployment.
It’s all unprecedented…
People are working from home…
Kids are getting a six-month summer vacation…
Businesses, if still alive, are thriving, getting a two-month life extension due to PPP, or are closing.
I’ve been a marketer for over 23 years, and currently, I own 2 businesses…
One is doing okay…the other has lost 75% of its clients in the past 30 days.
Earlier this week, I was talking to one of my agency partners, and he said exactly this…
“Advertising on Facebook is like 2013 all over again.”
What happened in 2013? Let’s just say back in those days, you could print money when advertising on Facebook. All you had to do is place an ad to an offer, and it would sell. The CPA (cost per acquisition) was so low that you could sell virtually anything at high-profit margins.
Why is this happening?
Because people are doing one thing, they shouldn’t be doing…
Facebook is an auction platform. When the demand is high, so are the costs to advertise.
When the demand is low, so are the costs to advertise.
If you, like me, are a business who has suddenly found yourself with a shrinking client base and a whole lot of worry about failure…
…DON’T SHRINK BACK NOW!
It’s time to re-think your strategy, redesign your approach, and go at it again.
Sure…cut unnecessary costs and spend responsibly, but pull out of marketing all-together will be a mistake.
Here’s a simple way of looking at what and where to cut and where to invest.
It’s what I call the…
In a typical marketing mix, you want the following:
- 60% of your plan to be strategies that have been proven to work (with data)—this is known as your “control.”
- 30% of your plan are tactics that should convert but haven’t beat the control yet.
- 10% of the plan is for experimentation and/or innovation.
In a pandemic economy, you need to shift to an 80/20 approach:
- 80% of your efforts are on the control
- 20% are on tactics that should work.
But please, don’t shrink back entirely.
Yes, spend less…cut costs where you can…but do NOT stop marketing unless your business cannot transact at all.