Six strategies to strengthen your ag marketing efforts even when budgets are tight
The agriculture industry is no stranger to economic cycles. In fact, market volatility in ag sectors often exceeds what we see in the broader economy. During periods of reduced sales and revenue, it’s common for businesses to look for ways to aggressively cut spending and costs. Marketing is often on the short list. But smart ag brands know that investing in marketing during uncertain times can drive brand growth, customer loyalty and market share gains.
History proves it pays to stay in market
Marketing during a downturn isn’t a gamble. It’s a strategy.
Take the brands Kellogg’s and Post during the Great Depression. While Post aggressively cut its advertising spend, Kellogg’s doubled theirs. The two cereal giants had been battling it out in print and radio, but Kellogg’s recognized the opportunity in the moment. The result? Kellogg’s saw a 30% growth rate through the Great Depression. Post, on the other hand, lost market share. By the time the economy started to recover, Kellogg’s had established a market lead that Post spent the next three decades chasing.
Fast forward to the 2008 recession. A study by Harvard Business Review showed that brands that increased paid advertising saw a 17% increase in sales. Those that cut spending risked losing 15% of their business to their more aggressive competitors.
The takeaway: when others go quiet, your voice gets louder.
Ag marketing strategies to use when budgets are tight
While the case can be made to increase, or at least hold steady with marketing spend, during economic downturns, the reality is that many of us will still have to sharpen the pencil to some extent. Here are six strategies to protect and strengthen your brand in uncertain times.
Strategy 1: Maintain ag brand visibility and share of voice during downturns
Stay top-of-mind while your competitors disappear.
As your competition slashes spend, media inventory opens up and rates often drop. This is an opportunity to negotiate better value.
Tactics:
- Focus on trying to maintain a consistent presence to reassure your customers
- Shift your messaging from performance-focused to brand value and trust
Strategy 2: Optimize budget through smarter media spend
Get more out of every dollar.
Now is the time to double down on high-ROI channels like:
- Email marketing
- Paid and organic search
- Retargeting
This allows you to focus your ag marketing dollars on channels that deliver measurable performance and strong ROI. And it helps to make the case to stay in-market and even to take advantage of the situation. It’s also a great idea to employ zero-based budgeting during this time.
Stay agile as you evaluate and optimize.
Strategy 3: Refine messaging and audience segmentation
Generic messaging won’t cut it right now.
Continuing to run your existing creative might be a way to save a tiny bit of budget, but it will cost in the long run.
Tips:
- Use empathetic, value-driven messaging
- Speak directly to different audience segments like farmers, dealers and retailers
- Avoid tone-deaf creative from better times
Strategy 4: Focus on long-term ag brand strategy over short-term promotions
Don’t race to the bottom.
It’s not uncommon to think that discounts and promotions are the way to sell products or services in a down market. It makes sense at first glance.
But the goal of marketing during these challenging times should be more about the long-term health of your brand than just short-term sales. The ultimate goal should be brand preference that drives long-term sales and even pricing power as the market strengthens.
Ask yourself: Are we building trust or just buying attention?
Strategy 5: Strengthen customer loyalty and first-party relationships
Your current customers are your most valuable asset.
It’s more cost-effective to keep current customers than to win a new one. Build on what you already have.
Ideas:
- Explore ways to stay in front of your current customers with your newly refined messaging
- Leverage email marketing and SMS campaigns to nurture your ag customer base and deepen first-party relationships
- Think about investing in a loyalty program for your customers
Strategy 6: Track ROI Rigorously and Adjust tactics
Your CFO is watching. Give them the right metrics.
While it is tempting to focus on ROI/ROAS (return on investment/advertising spend), try to widen the aperture:
- Monitor CAC trends (customer acquisition costs)
- Emphasize CLV (customer lifetime value)
- Track market share changes, not just sales numbers
The goal now is more about the long-term than the short-term. But anywhere you can show short-term results, go for it, especially if you can show shifts in market share that help your case. Your sales may be flat, but are your competitors crashing?
As you look at this data, really listen to it. Don’t just look for the data you are hoping to see. Use all of it to continue to refine and enhance your spend.
Action plan: What to do next
While it might seem a little overwhelming, here is your action plan to get started down this path:
- Audit your current marketing ROI
- Reallocate budget to high-performing digital channels
- Refresh messaging with a focus on empathy and value
- Stay visible and don’t go dark
- Track your performance weekly and make adjustments
Or you can drop us a note, and we can work on this challenge together. We specialize in helping ag brands thrive during downturns by building smart, adaptive ag marketing strategies that drive results.
Adjusting your marketing strategy can be overwhelming. We can help. Download the Discovery Map to help your organize information and develop strategies for success.
Frequently Asked Questions
Q: Should agriculture companies cut marketing budgets during an economic downturn?
A: Cutting marketing may save money in the short term, but ag brands that maintain or increase their marketing investment during downturns often gain market share, improve brand trust and position themselves for faster growth when the market rebounds.
Q: What is the best marketing strategy for ag brands during uncertain times?
A: The best strategies include maintaining brand visibility, shifting spend to high-ROI digital channels, refining messaging and building long-term customer loyalty.
Q: How can ag marketers show ROI during tough economic periods?
A: Beyond traditional ROI/ROAS, marketers should track CAC, CLV and market share trends to show the impact of marketing during challenging times.