High inflation and the cost of living crisis is changing the marketing strategies of major brands, our new report shows.
Our latest Marketers Most Wanted report found that chief marketing officers and brand owners are focusing on lower cost strategies and those that produce faster results.
The report, which monitors the actual briefs posted by chief marketing officers (CMOs) and brand owners on the Studiospace platform, showed continued investment in lower cost areas such as social media (16.4%) and creative and production (10.5%).
Whereas investment in user experience (16.4%) remains strong as brands recognise customers are being choosy on how they spend their limited budgets.
“The impact of high inflation and the cost of living crisis is clear to be seen in the marketing strategies of major brands,” said our CEO Pete Sayburn.
“Brand owners recognise customers have restricted budgets and are being choosy on how they spend their money. However, they are also very aware that if they are unsatisfied they will vent their frustrations on social media. “Brands want to stay close to customers, engage with them and ensure their experiences are as smooth and positive as possible. “Last month, we saw a lot of budget being directed toward social media, video content and UX and that trend is continuing.”
The report also found a resurgence in areas such as pay-per-click (4%) and digital marketing (6%), which tend to produce speedier results.
Meanwhile, projects with longer term outlooks such as proposition design, research and insight and strategic design have fallen.
“Marketers are under pressure to make sales and so are going short-term on strategies designed to gain customers sooner rather than later,” added Sayburn.
“This is entirely understandable in light of the economic circumstances. Everyone is looking at the sales figures and being asked to fight harder to get customers to buy.”
The report also showed a growth in events, up from four percent to six percent this month. This, Sayburn suggests, indicates the marketing industry is finally shaking off the legacy of Covid and lockdowns.
“There’s been a pleasant boom in business to business events, with the majority being held in-person. The era of online events forced by lockdown now seems like a distant memory and people want to meet face-to-face and have stimulating conversations.
“So, despite a challenging economic outlook, there is a sense that it’s summertime and people want to get out and meet one another again.”
The Marketers Most Wanted survey is published monthly and is based upon the actual briefs posted by CMOs and brand owners onto the Studiospace platform.