INTRODUCTION
Doing more with less

Weighing costs and investments without risking marketing quality

Marketing overcame the struggles in 2020 with creativity and resilience. Budgets have recovered slightly from historic lows, but uncertainty still remains.

With the aftermath of the COVID-19 pandemic and the economic and geopolitical damage arising from the conflict in Ukraine, the world is currently experiencing:

Significant slowdown of global growth in 2022
Rising interest rates in the US spreading globally
Inflation spiraling out of control
Increasing fuel and food prices resulting in a cost of living crisis in Europe

The implications for businesses around the globe in this context are very real, often bleak - at a scale not seen since the 2008 Financial Crisis. Already being stretched thin in resources and man-power, marketing teams have been thrown into the spotlight, expected to do more with less, with Forbes reporting that an average of 9.2% of marketing jobs have been lost in the pandemic.

At the same time, marketing teams are being asked to increase the volume of digital output and content, despite an overall decrease in marketing spending. Most CMOs reported that they had increased their digital marketing spending by only 9.57%.

B2B companies and marketing teams are often the first to take the budget cut hit.

As inflationary pressures hit consumer goods brands, rises in prices to compensate for business losses produce knock-on effects on the cost of living for consumers, squeezing consumer spending and increasing demand volatility. Consumer goods are said to represent the 'canary in the coal mine' - an early indication of budgetary challenges coming down the line for other industries in B2B, which represents 70% of the economy. If imbalances worsen and inflation continues to increase unabated, both economic output and employment are at risk.

The potential business impacts of such a recession are often a shift of focus from growth and innovation towards cost optimization, more cost pressure and margin erosion, and ultimately reorganization pressures.

Inflation could also prompt enterprises to shift to a short-term focus for survival, with fewer long-term commitments in an attempt to ride out the storm.

But how can marketers continue to make the most of 2022 budgets, balance investment costs, and come up with smart initiatives that continue to prove the value of marketing?

Global growth is projected to slow from an estimated 6.1% in 2021 to 3.6% in 2022 and 2023, according to the IMF.

Cutting costs without risking marketing performance can feel like an impossible balancing act.

But, with effective prioritization, a thorough plan, and the right tools, spending less can turn out to be the catalyst for achieving better results.

Read on to find out how 👉

What are the most relevant challenges for your team facing budget cuts?

Demonstrating ROI
Identifying the right decision-makers
Fewer 'sales ready' leads entering the pipeline
Longer B2B sales cycle
Producing content with limited resources
Digital transformation
Hiring the right talent