Summary
- When the stock market is down, large companies often cut their marketing budgets to save money.
- These companies are the biggest spenders on platforms like Google, Facebook, and TikTok.
- When they reduce spending, the cost of ads tends to go down.
- This creates a great opportunity to buy more ads at a lower cost.
- These conditions allow acquiring more customers and increasing market share.
- When the stock market recovers, big companies start spending more on ads again.
- This increased spending makes it harder for small and medium-sized businesses (SMBs) to compete for ad space.
- It’s important to take advantage of lower ad costs during economic downturns to grow your customer base and market presence.
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How To Take Action
Action Plan for Small Businesses and Entrepreneurs
I would suggest taking advantage of periods when the stock market is down. During these times, large companies often cut their marketing budgets. This makes ads on platforms like Google, Facebook, and TikTok cheaper. Here’s what you can do:
- Monitor the Stock Market: Keep an eye on the stock market. When it starts to dip, be ready to act.
- Allocate a Budget for Ads: Prepare a small budget for online ads. Even a modest amount can stretch far when ad costs are low.
- Choose Your Platforms: Focus on one or two platforms where your target audience is most active. Popular choices are Google, Facebook, and TikTok.
- Create Targeted Ads: Use the lowered ad costs to create more or better-targeted ads. This can help you reach a larger audience without spending a lot of money.
- Track Your Campaigns: Make sure to track the performance of your ads. This will help you understand what’s working and what’s not, allowing you to adjust your strategy accordingly.
- Grow Your Customer Base: Use this opportunity to acquire more customers and increase your market share. The lower ad costs mean you can get more for your money.
- Stay Agile: Be prepared to adjust your spending as the market conditions change. When larger companies start increasing their ad spend again, you may find it harder to compete.
By implementing these strategies, you can make the most of economic downturns and position your business for growth, even when times are tough.
