The early warning indications point to a recession or stagflation ahead.

Presidents and Marketing Directors need to know what is happening that will impact their responses… and strategies to make sure they maximize responses.

Here are 4 keys to looking ahead to a recession this summer or fall.

Early Warning Indicator #1—Facebook advertising revenue crashes:

The only reason Facebook’s revenue wasn’t worse this quarter is because they received a considerable amount of ad revenue from China.

Early Warning Indicator #2—Amazon advertising 1st quarter results

Amazon’s 1st quarter results slowed, showing that companies are spending less on advertising and consumers are spending less on products.

Early Warning Indicator #3—Google and YouTube revenue continues to plummet

Google ad revenue shrunk for the second consecutive quarter.

YouTube ad revenue fell by 3%, making three quarters of decline, with a total ad revenue of $6.69 billion.

Google’s network ad revenues shrunk by 8% (YTD), and much of the loss comes from search revenue as money is better spent on Bing and its A.I. popularity.

Google has not stopped its hostility to targeting marketers with its unreasonable restrictions and other marketing tools.

Instead, it’s concentrating on short-form video and A.I. to turn its revenue around.

Early Warning Indicator #4—Economic Indicators

Marketers continue to face bad news on a number of economic issues:

  • U.S. gross domestic product (GDP) rose only 1.1% from January to March from the low of 2.69 in the 4th quarter.
  • Inflation has spiked 14.9% since Biden’s massive government spending
  • 7 months of straight retail sales decline…and each month it gets worse.
  • The average mortgage rate is 15% higher than 1 yr ago.
  • Interest rates have increased in one year more than the previous 15 years combined
  • Bank Rate Economic Survey forecasts a 64% chance of recession by the end of the year.
  • Yield inversion: long-term government yield are below short-term yields indicating a recession ahead
  • Another rate hike hurting business expansion and growth just happened…the 10th hike in a year.

What to do?

The best thing for marketers is:

  • Make sure you know your ROI in all your advertising. Call us if you need help in using accountable advertising strategies and tactics.
  • Know your best strategies to not only ride out but even grow in a recession. (See Audience Stunned At My Shocking Statement: Why Advertising Budgets Are The First To Be Cut During An Economic Downturn Or Recession, our article on recession marketing.) Click HERE to read the article.
  • Listen to Trend #2 in my new trends speech. For about 10 minutes, I explain about recession and inflation marketing strategies and what every marketer must know and do to dominate their market, while competition falls behind. Click HERE to see the speech and fast forward to Trend #2.