An early warning indicator of a recession is online revenue decline.

And it’s now happening.

Here’s what you should know and why it matters:

  1. Ad weakness has hit hard!
  • Amazon ads and customer purchases down…
  • Snapchat posted its weakest ever quoted sales growth as a company…
  • Google ads down…
  • Meta ads down…
  • Twitter revenue decline was due to advertising weakness…

Presidents of companies and even marketing directors are making a tragic, strategic and tactical mistake by cutting their marketing budgets (see The Critical Question You Should Be Asking Yourself About Marketing During a Recession).

  1. Digital marketing decline is an early indicator of a recession!

Digital companies such as Meta are the first to be hit the hardest by an economic slowdown.

Why?

Because marketers will cut back on marketing and advertising as the company enters a recession.

Usually the wrong tactic (again see The Critical Question You Should Be Asking Yourself About Marketing During a Recession) the first cut is usually advertising.

What is wonderfully unique about digital marketing – it’s a cut in real time.

It’s immediate.

TV, radio, and direct mail cutting back takes time.

This was clearly the case in 2007-2009 and again when the pandemic shutdown happened in 2020.

Digital ads were the first to take a hit.

And, it was the first to bounce back.

Give us a call at 615-933-4647 or email Craig at craig@cdmginc.com for more information.