A Bloomberg report states that 48% of investors expect a recession in 2023, 21% expect it by 2024, and 15% predict it in 2022. [source] But while a recession certainly spells trouble for businesses, it doesn’t have to be the end. With some preparation, companies can weather even the most severe economic downturn.
One of the best ways to prepare for a recession is to build flexibility into the business model, knowing when to cut costs, where to invest, and being smart on budgets. Moreover, outsourcing certain aspects of the business will be a great way to save money and stay agile in uncertain times.
Before switching during a recession, you must know everything about outsourcing to a white-label agency.
What Is Recession Meant To A Marketing Agency?
For a marketing agency, a recession means missed opportunities due to a lack of confidence among businesses, affecting advertising agencies. The recent Covid-19 recession in 2020 had a devastating impact on advertising revenue, decreasing to $25 billion in December 2020 with a 4.2% drop in advertising revenue compared to 2019.[source]
It would be a difficult time to digest for many businesses, and the advertising industry is no exception. Marketing and advertising budgets are some of the first to be cut, and the effects will be felt throughout the industry. However, while a recession may be bad news for some businesses, it is a boon for savvy marketing agencies. Moreover, difficult times lead to new opportunities for those willing to take risks and think outside the box.
Impacts Of The Recession On Marketing Agencies And Clients
A recession can have a ripple effect on many businesses, including marketing agencies and clients. When consumers cut back on spending, businesses lose income and are forced to reduce expenses. This leads to layoffs and cutbacks in marketing budgets.
As a result, marketing agencies also find themselves with fewer clients and less work. In addition, the economic downturn leads to a decline in ad spending as businesses tighten their belts. This makes it challenging for marketing agencies to generate new business and keep their existing clients happy.
Moreover, companies are often hesitant to invest in marketing initiatives during tough financial times and are worried that the ROAS (Revenue on Ad Spending) will suffer as a result. While many companies put their marketing plans on hold during a recession, others find this the perfect time to invest in outsourced marketing services.
However, even in tough times, there are always opportunities for creative marketers who are willing to take risks. By being proactive and offering innovative solutions, marketing agencies can weather the storm and come out stronger on the other side.
Why Outsourcing Is The Best Option?
Preparation is critical during a recession. One way to prepare is by outsourcing some of your company’s work. This provides you with much-needed financial flexibility during an unstable economy.
With today’s technology, nearly all office-based tasks can be performed virtually from anywhere in the world. And outsourcing to a country with a lower cost of living will help you save even more money.
Additionally, outsourcing can be a boon for companies during difficult economic times.
- When layoffs are necessary, they will help keep the remaining workforce from becoming overwhelmed by added responsibilities.
- It saves on costs by letting go of tasks that no longer require a full-time staff member.
- Finally, outsourcing also helps free high-level employees to focus on more important tasks by taking care of the ordinary, necessary tasks often required during a recession.
So when a recession hits, consider outsourcing to keep your business afloat. It may require changes in your company’s structure, which you may thank later!
Why Outsource To A White-Label Agency?
In uncertain times, it’s more important than ever for marketing agencies to think outside the box when generating revenue. To do this, offer your expertise to white-labeled services that provide services to other businesses under the branding of the client company. This would be a great way to improve your cash flow.
Moreover, saying no and ignoring an opportunity for new services demanded by clients is not a good option during tough times. That’s where white-label marketing service providers are perfect partners for your agency. By partnering with a white-label provider, you tap into their expertise and resources while still providing a high level of service to your clients.
So if you’re looking for ways to recession-proof your marketing agency, consider partnering with a good white-label service provider.
Things To Look For In A Good White-Label Service Agency
There are a few key things to look for in a good white-label service agency during a recession:
- First and foremost, finding an agency that shares your company’s vision and values is essential. This strategic alignment is necessary for promoting mutual growth and success during a recession. If you prioritize strategic alignment, you’ll be well to a successful white-label relationship.
- Look for an agency that has a proven track success record. During a recession, partnering with an agency that can deliver results is more important than ever. Ask for references and case studies to be confident in the agency’s abilities.
- Find an agency with a strong team of professionals with the skills and experience necessary to meet your needs during this challenging time. Ensure they have a proven track record of success in helping companies weather economic storms.
- During a recession, it’s essential to control costs wherever possible. So, look for an agency that offers competitive pricing, and get quotes from multiple agencies so you can compare pricing and services before making a decision. However, sacrificing quality to save money is not a good show.
By keeping these things in mind, you can be sure to find an excellent white-label service agency that will help your business succeed during a recession.
Outsourcing to a white-label agency is a cost-effective way to get work done during a recession, as it can be cheaper than hiring in-house staff. In addition, it is an excellent way to maintain quality levels, as white-label agencies are specialists in their field. Finally, it helps free up time for businesses to focus on their core competencies and areas of expertise.
