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The economy is shifting – how is this going to impact digital media?
For the better part of two years, Australia’s economy has been put through the ringer as we’ve battled the pandemic and all of its accompanying challenges. But in particular, the last couple of months have been especially crazy: heads of lettuce selling for $12 apiece, petrol prices soaring past $2 per litre, shocking inflation rates and produce shortages have dealt everyday Aussies blow after blow. The knock-on effects of this tumultuous economy are likely to be felt throughout almost every industry – here’s the lowdown about the current economy and how it could affect the digital media space.
Why is the economy running amok at the moment?
There are a number of factors contributing to the current economic climate in Australia. La Niña has hung around and overstayed her welcome in Australia, meaning farmers have had trouble growing the crops they’d usually have an abundance of at this time of the year. The war between Russia and Ukraine is upsetting the global oil trade, hiking up petrol prices and causing inflation around the world. Post-pandemic staff shortages are affecting supply chain operations. In a normal economic state, any one of these phenomena would make headlines – the occurrence of all of them at once is bordering on unbelievable.
Should you be worried?
Experts are saying no. RBA Governor Philip Lowe has reassured Aussies that we aren’t headed towards a recession and that as long as we take the proper precautions over the next few months, our economy will bounce back strongly.
How does this affect digital marketing?
As always, a shifting economy means that consumers are more wary of their discretionary spending, which pressures businesses in all industries to up their marketing efforts. This will likely mean a higher average CPC for advertisers and potentially a smaller return on ad spend. We predict that marketing budgets will be maxed out while we ride out the economic downturn to keep up with increased competition.
Here’s what we recommend
Focus on your particular competitive edge. Find the thing that sets your brand apart, and drive that home. We suggest meeting consumers in the information search phase of the decision making process – show them who you are and why they need you. This is a great opportunity to build relationships with new and existing customers and hone your value as a business. These relationships will likely be the key to surviving (or even thriving) while the economy recovers.
For a personalised digital marketing strategy tailored to your business, get in touch with the Zib Digital team today.