A recession-ready framework for approaching marketing and advertising strategy in the face of ever-changing consumer habits and beliefs.
Paid media and digital marketing expert, Sarah Clarke has led and managed digital marketing campaigns for top high street brands for a number of years, and uses her expert knowledge in paid media and behavioural science to produce cutting-edge strategies. Currently Clickthrough Marketing's Head of Digital Paid Media, Data & Analytics, she holds a bachelor’s degree in psychology, master's degree in digital marketing and has been working in paid media advertising since 2016.
Having worked for several of the UK's leading digital agencies such as iProspect, RedBrain and Impression, Sarah has appeared as a guest lecturer, written countless thought leadership pieces and worked as a digital marketing development coach where she shares her experiences of working in some of the most competitive industries and helps individuals advance their marketing knowledge.
Currently heading up ClickThrough’s digital paid media offering, Sarah leads the companies PPC strategies along with facilitating her team’s learning and development where she strives to ensure they are a well oiled machine. Sarah also leads on ClickThrough’s newest offering of Behavioural Science; challenging brands’ understanding of their consumers and empowering them to make tricky marketing decisions at a time when strategy and messaging has never been more important.
15. So when you think about it, it’s no
wonder consumers are spending
less
But what does the data say?
16. Consumer confidence has hit a low…
Source: Consumer Confidence Index, 2019-2022
86
88
90
92
94
96
98
100
102
104
#BrightonSEO
17. Note(s): Worldwide; April 29 to May 9, 2022; 16 years and older; 11,056 respondents
Source(s): Dynata; ID 1317949
2
And caused changes in habits…
60%
48%
45%
38%
36%
0% 10% 20% 30% 40% 50% 60% 70%
Cheaper purchases
Less non-essentials
Dining out less
Traveling less
Going out less
#BrightonSEO
18. marketing budgets
would go first
66%
Whilst advertising has changed
consumers plan to
cut spending
84%
rise in media costs
of advertising
4.5%
Source: AdWeek
#BrightonSEO
19. Leading to the swiss cheese effect,
often seen in aviation disasters…
20. Have you had these questions?
Why is performance down
YoY? What are we doing
differently?
Why aren’t we
driving more
revenue?
How can we make
our website or our
pages work harder?
Is this drop in
revenue/sessions
consistent across other
clients?
#BrightonSEO
21. What consumers
do during a
recession
So what are we going to talk about?
Why consumers
keep spending
during a recession
Strategies for the
specific consumer
behaviour
#BrightonSEO
22. Who am I?
Sarah Clarke - Head of Digital Paid Media, Data &
Analytics
• Eight years experience, managing
annual budgets of £3million
• Specialism in the psychology of digital
marketing and applied behavioural
science
• Masters in Digital Marketing
/sarahclarkedigital
#BrightonSEO
23. This theory is founded in research
Source: How to Market in a Downturn by John Quelch & Katherine Jocz
#BrightonSEO
24. Slam on the
breaks
Pained but
patient
Comfortably
well off
Live for
today
#BrightonSEO
So how does spending change?
32. A consumer spending framework
Essentials Treats Postponables Expendables
Slam on the
breaks
Will see lower cost
brands / value options
Will reduce or eliminate
treats or seek lower cost
substitutes
Will put off all possible
spend unless forced to
Will eliminate purchases
in this category
Pained but
patient
Will seeks out favourite
brands at lower prices,
will stock up on good
deals
Will cut back on some,
less frequent and less in
quantity
Will delay purchases,
repair, seek value and
low ownership costs
Will deeply curtail
expendables
Comfortably
well off
Will continue to buy
favourite brands
Will be more selective in
purchasing luxuries
Will seek better quality
for the price, will
negotiate harder
Rarely regards any
purchases as
unjustifiable but may
reduce conspicuous
Live for today
Will continue to buy
favourite brands at pre-
recession levels
Will continue to buy
favourite brands at pre-
recession levels
May buy if there is a
great deal, otherwise
may postpone
Reluctant to regard any
purchase as
unjustifiable, may not
expand to new types
LOW HIGH
RISK OF SALES DOWNTURN
HIGH
LOW
BEHAVIOUR
CHANGE
/sarahclarkedigital
#BrightonSEO
34. This is where strategy shines
Essentials Treats Postponables Expendables
Slam on the
breaks
Will see lower cost
brands / value options
Will reduce or eliminate
treats or seek lower cost
substitutes
Will put off all possible
spend unless forced to
Will eliminate purchases
in this category
Pained but
patient
Will seeks out favourite
brands at lower prices,
will stock up on good
deals
Will cut back on some,
less frequent and less in
quantity
Will delay purchases,
repair, seek value and
low ownership costs
Will deeply curtail
expendables
Comfortably
well off
Will continue to buy
favourite brands
Will be more selective in
purchasing luxuries
Will seek better quality
for the price, will
negotiate harder
Rarely regards any
purchases as
unjustifiable but may
reduce conspicuous
Live for today
Will continue to buy
favourite brands at pre-
recession levels
Will continue to buy
favourite brands at pre-
recession levels
May buy if there is a
great deal, otherwise
may postpone
Reluctant to regard any
purchase as
unjustifiable, may not
expand to new types
LOW HIGH
RISK OF SALES DOWNTURN
HIGH
LOW
BEHAVIOUR
CHANGE
/sarahclarkedigital
#BrightonSEO
36. With a messaging focus for essentials…
#BrightonSEO
Brand
focus
Promote
packs
Emphasis
price
Can’t live
without
37. And alternative messaging for treats…
#BrightonSEO
Great
quality
Reward
loyalty
You
deserve it
Seize the
moment
38. A different focus for postponables…
#BrightonSEO
Buying
now
Repair
services
Offer
finance
Quality of
life
39. And wrapping up with expendables
#BrightonSEO
Discreet
buying
Brand
focus
DIY
options
Must have
items
40. To produce a messaging framework
Essentials Treats Postponables Expendables
Slam on the
breaks
Emphasise price; hit wallet-
friendly retail price points
Offer smaller pack sizes for
less money
Promote low-cost value
products
Shrink sizes
Hold prices down
Advertise as a “you deserve it” small
indulgence
Provide low cost financing
Promote exceptional deals
Challenge penny-wise, pound-
foolish behaviour
Offer do-it-yourself
alternatives to doing without
Continue awareness
advertising (for instance, for
future plans)
Pained but
patient
Offer a lower-priced option
Promote bonus packs to
encourage stockpiling
Emphasise dependability of
brand product or service
Reward loyalty consumers, even if they
consume less
Advertise products as morale raisers
Advertise products as affordable
alternatives to more expensive luxuries
Offer simpler models, lower
prices
Promote lower-operation-cost
models
Promote repair services
Continue awareness
advertising
Invest in product
improvements that accelerate
customers reentry
Comfortably
well off
Continue awareness
advertising
Emphasise outstanding quality
Advertise as a product you deserve
because you are successful
Promote savings from buying
now
Advise customers they’re
“missing out” by postponing
Enable discreet purchasing
that avoids the appearance of
flaunting Advertise benefits of
impressing wealthy friends
Live for
today
Continue awareness
advertising
Remind consumers “you can’t
live without it”
Offer convenient automatic credit card
billing
Promote as an opportunity to seize the
moment
Offer monthly payment plans
Promote quality of life benefits
of buying now
Offer exciting new products
and promote as “must have”
Advertise as products you can
aspire to when your income
grows
/sarahclarkedigital
#BrightonSEO
43. Lets use Dell as an example…
“Out of the
box, within
your
means”
“Depend on
Dell for
simple
solutions in
tough
times”
“The ideal
laptop
works
anywhere,
in any
economy”
“Weak
economy,
powerful
you”
#BrightonSEO
46. What consumers
do during a
recession
So what have we covered?
Why consumers
keep spending
during a recession
Strategies for the
specific consumer
behaviour
#BrightonSEO