Government advice to cut marketing budgets 'unhelpful and ill-advised ' - EBY

Small businesses are being urged to review rather than reduce their marketing budgets amid fears of an economic downturn and following news of a Government campaign asking businesses to cut their prices.

New cost of living tsar David Buttress recently commented that businesses should use 'money they would otherwise spend on marketing ' to pass on savings to their customers.

The comments have already sparked considerable debate, with many fearing this knee-jerk reaction could be detrimental rather than beneficial.

Midlands-based agency, EBY, says while marketing shouldn 't take the budgetary hit, it 's always good practice to make sure money is being well spent.

Mark McDonagh, EBY client services director, said: “Encouragingly, business reaction seems to largely reject the notion that marketing should take the budgetary hit, serving instead to highlight the value of promotional activity - and particularly during a downturn.

“The Government advice is unhelpful and ill-advised as it completely overlooks how integral marketing activity is to the success of most companies. And while we agree that marketing shouldn 't be the sacrificial lamb here, we would always advise companies to review marketing spend to make sure it 's being targeted wisely. ”

Figures from the Advertising Association show the UK ad market reached a record £31.9bn in 2021 and is forecasted to grow another 10.7 per cent in 2022 to £35.3bn. While advertising is only one element of marketing investment, this is indicative of the industry, with every £1 spent on advertising generating £6.

Mark added: “At EBY we 've experienced almost 75 per cent year-on-year growth since the start of 2022 as businesses have continued to make dramatic shifts towards digital in response to the pandemic, demonstrating how additional spend can be central to helping a venture not only survive, but prosper, during difficult times.

“But yes, you absolutely need to make sure you 're getting the most from your marketing money. ”

In order to do this, Mark is asking businesses to consider the following points:

Be flexible in your marketing

“While the pandemic was a terrible and challenging time, it 's forced companies to look at their business models, their resilience and how future-proof they are.

“Many have had to become much more flexible in their approach, including flexibility in marketing. Having flexibility built in allows businesses to adapt, or shift direction in response to market forces (or global pandemics).

Checking in with your customer base

“The beauty of digital marketing in particular is that you can easily monitor and evaluate its success, so it 's worth reviewing regularly. For example, are you still targeting activity which is showing a reduction in performance? Are your customers the same or has your customer base changed due to changing demands?

Clear marketing briefs

“On a similar note, you need to have clear evaluation criteria in place to check how your marketing activities are performing and decide if anything needs switching up. A recent report from BetterBriefs revealed UK marketers estimate 26 per cent of their marketing budget is wasted on poor briefs and misdirected work.

Make sure your marketing is still aligned with your business goals

“Ultimately, marketing should exist purely to help you achieve your business 's goals. If you 've had to redefine business goals due to financial constraints, make sure your marketing targets are equally redefined. There 's no point paying for something that is no longer bringing you business because it 's not delivering results.

Re-evaluating your marketing solution

“Rather than cutting your marketing budget, it can be more beneficial to review the activities you 're paying for to ensure every pound is working hard to generate business, especially in an economic downturn. ”

For businesses questioning whether their agency is still a good fit, or looking to outsource marketing for a second opinion or a more strategic approach, get in touch with EBY here.