Navigating Marketing Volatility: Buy the Dip?

We’re experiencing another period of hyper-volatility. As marketers, we’re used to these ups and downs, especially when our budgets are often the first to be cut and the last to be restored. But this one is just…weird. On so many levels.

Like many of you, we’re also tempted to watch our 401k accounts with some concern. Good financial advisors typically recommend a few key strategies during these times: a) try not to obsess over it, b) avoid panic selling, and c) consider buying the dip if possible. Historically, weak markets can be great opportunities to build wealth as assets become undervalued. However, it’s tough to take that leap when you feel the market might still decline further.

Despite the market conditions, we marketers have to keep moving forward. We have jobs to do! Ciceron has experienced and led through extraordinarily similar patterns play out through the dot-com crash, 9/11, the 2008/9 financial crisis, COVID, and now whatever we’re calling this.

Here are three strategies to help navigate the current landscape:

1. Scale High-Performing Audiences: Your best new customers resemble your best current customers. Really dig in to understand what makes your best customers special. What are their unique characteristics? How many more potential customers like them are out there? We’re talking about intelligence way beyond just using look-alike models. Use AI to analyze all available data points, including sales and support call transcripts, to gain deeper human insights. Supplement this with industry research to refine your understanding. Then, leverage available tools to model and scale new audiences that will quickly understand your products, convert at higher rates, and remain loyal for longer. Focus on scaling known successes rather than trying to conquer new segments right now.

2. Fully Fund Conversion Channels: In weak markets, conversion channels like Google AdWords (especially Performance Max and Demand Gen) are essential for meeting your performance goals. Eliminate any wasted spending and concentrate your funding down-channel. You might find weaker auctions, which presents a “buy the dip” opportunity as competitors pull back.

3. Harvest First-Party Data: Data providers know the value of their assets, even in down markets. Brands lacking strong first-party data are heavily reliant on third-party providers. Those with robust first-party data can enter the market with a strong currency, allowing them to buy more targeted datasets at lower prices. Having powerful and strong data to use in the market provides you with incredible opportunities to scale back up into awareness channels like digital video with less price pressures.

By focusing on these three principles, you can significantly reduce the impact of volatility. These changes are beneficial in any market condition, making them smart long-term strategies. Marketing leaders will be held to high performance standards, with increased scrutiny from CFOs, so your marketing financials and strategies must meet their expectations.

You’ve got this.