Businesses need to carefully manage their dollars, but cutting content marketing could lead to an even bigger hit to your bottom line.
There’s no way to sugar coat it - 2020 has been a tough year for businesses.
Australia, along with most countries around the world, is experiencing recession due to the COVID-19 pandemic. In fact, we’re going through the worst financial slump since the Great Depression of the early 1930s. In the three months to June, Australia’s economy fell 7 per cent – the biggest collapse since records have been taken. Consumer spending, meanwhile, fell by 12.7 per cent – a drop caused in part by lockdowns and in part by caution in the face of uncertainty.
These figures aren’t pretty. And you would be forgiven for thinking that businesses should immediately cut costs wherever possible. While businesses should carefully manage their dollars – now (and as always) – cutting content marketing could lead to an even bigger hit to your bottom line.
Research from Harvard Business Review shows that "companies that master the delicate balance between cutting costs to survive today and investing to grow tomorrow do well after a recession". The best performing companies reduce costs selectively by focusing more on operational efficiency than their rivals do, but they invest comprehensively in the future by spending on marketing, R&D, and new assets.
Here are three key reasons to invest in content marketing right now:
1. It builds loyalty
With various lockdowns and social distancing guidelines limiting movement across the country, virtual connection is more important than ever. Around the world, people are flocking to their screens – browsing, searching, shopping and chatting. Your audience is out there, waiting. And if it’s not you speaking to them, it’s your competitors.
That said, this isn’t the time for the hard sell. People are suffering under the weight of restrictions and uncertainty. They are unlikely to respond to demand-driving content, but there is an opportunity for genuine connection. A recent global survey by Kantar found that while only eight per cent of people expect brands to stop advertising, 77 per cent of people want messaging to ‘talk about how the brand is helpful in the new everyday life’. Content with context and integrity can hit these marks and help strengthen your audience.
2. It’s cheaper than traditional marketing
Marketing is vital for lead generation and content marketing is both powerful and cost-effective. In fact, content marketing costs 62 per cent less than traditional marketing, according to Demand Metric. The 2015 Social Media Marketing Industry Report found that investing just six hours per week in content marketing was enough for 91 per cent of marketers to see an increase in web traffic… enough said! With the backing of a well-considered strategy, you can do a lot with a little.
3. It boosts SEO and generates leads down the track
Content marketing is a long game. This is true in times of pandemic and otherwise. By building loyalty through authentic, audience-first content now, you’ll be doing your brand a world of good, and setting yourself up for greater rewards in the future. Even a simple blog post with the right keywords could yield results for months or years, boosting SEO and delivering web traffic. During the 2008 Global Financial Crisis, brands that continued to spend were the ones that remains strongest during and recovered most quickly afterwards. To be in a similar position, the groundwork happens now.
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