If you’re experiencing whiplash reading the headlines about a recession (possible) and inflation (real), you’re not alone.
Politicians, economists, and market professionals are engaged in a semantic debate over whether the U.S. economy is in a recession. According to the general definition—a recession is defined by two consecutive quarters of negative gross domestic product (GDP). Others disagree, noting a strong labor market, corporate earnings growth, and a tight job market.
But the pain we all feel as consumers from inflation is real.
To confuse things even further, Americans are collectively sitting on $1.7 trillion in excess savings built up over the pandemic, giving consumers a little cushion should prices continue to rise (Axios).
Are marketers worried about a recession? Will their worries affect marketing, advertising, and media budgets for 2023? Not according to two studies by Sales Force.
One third of marketers in the survey say that while budget constraints are a challenge, nearly 90% of us say our work “provides greater value now than it did a year ago.” That’s an increase of 10% in one year.
The media investment firm Magna reduced its U.S. advertising growth forecast for 2023, saying a weaker economic environment is likely to cut its growth forecast for next year to 4.8% from an earlier prediction of 5.8% in June.
But digital advertising continues its healthy growth, particularly digital out-of-home and streaming audio and video. With its ability to hyper-target select audiences, track and optimize campaigns in real-time, as well as provide detailed and actionable campaign analytics and reporting, digital advertising is deserving and well-poised for its upward trajectory.
It’s no surprise brands are doubling down on digital marketing to attract customers during these uncertain economic times. What’s a marketer to do? Strive for higher levels of precision when it comes to marketing, advertising, and media. Stay focused on ROI. At Brkthru, we get results and make $1 work like $10. Reach out to us today to start a conversation about how we can help.