How to navigate market volatility as digital marketers

How to navigate market volatility digital marketers and business owners

The stock market crash Last week, this can be attributed to the upcoming US elections, and geopolitical tensionsThis uncertainty should be taken into account when planning for marketing strategies in the upcoming months due to causing shifts in consumer attention. 

Companies should re-allocate their budgets into less-risky marketing channels, and closely monitor the trends. By carefully monitoring this, businesses can position themselves better during and after the elections, when the market stabilizes.

date published

Aug 17, 2024

date published

Aug 17, 2024

date published

Aug 17, 2024

date published

Aug 17, 2024

reading time

5 min read

reading time

5 min read

reading time

5 min read

reading time

5 min read

Author

Author

Author

Author

Volatility in tech stocks and upcoming elections fuel investors' uncertainty and market turmoil.

Unless youve been living under a rock, youre probably aware that the stock market has recently taken a hit, with stocks like Nvidia and AMD experiencing significant drops. This downturn can likely be attributed to two main factors: the looming threat of a recession, which has led investors to scrutinize the economic foundations of AI investments, and a new source of concernthe upcoming U.S. elections. The tense atmosphere surrounding these elections, coupled with the geopolitical uncertainties they bring, is adding to market anxiety.

How to navigate market volatility digital marketers


Unless youve been living under a rock, youre probably aware the stock market has recently plummeted with certain stocks such as Nvidia, and AMD. Its most likely due to two things, a potential upcoming recession, and whats more of a new worry, the upcoming elections. This is due to the tense atmosphere most likely influenced by the upcoming US elections and the geopolitical uncertainties that come with it. 

Therefore, this creates uncertainty not just in the stock market but all around us. It doesnt just affect investors, it affects you too, as the CEO or CMO of your company. This trend is most likely to continue as we get closer to such a transcendental event in recent history, one that is starting to have notable effects on not just your conversations at home, but also your attention as a consumer, which has been shifted and will incrementally continue to do so for the rest of the year.

Volatility in tech stocks and upcoming elections fuel investors' uncertainty and market turmoil.

Unless youve been living under a rock, youre probably aware that the stock market has recently taken a hit, with stocks like Nvidia and AMD experiencing significant drops. This downturn can likely be attributed to two main factors: the looming threat of a recession, which has led investors to scrutinize the economic foundations of AI investments, and a new source of concernthe upcoming U.S. elections. The tense atmosphere surrounding these elections, coupled with the geopolitical uncertainties they bring, is adding to market anxiety.

How to navigate market volatility digital marketers


Unless youve been living under a rock, youre probably aware the stock market has recently plummeted with certain stocks such as Nvidia, and AMD. Its most likely due to two things, a potential upcoming recession, and whats more of a new worry, the upcoming elections. This is due to the tense atmosphere most likely influenced by the upcoming US elections and the geopolitical uncertainties that come with it. 

Therefore, this creates uncertainty not just in the stock market but all around us. It doesnt just affect investors, it affects you too, as the CEO or CMO of your company. This trend is most likely to continue as we get closer to such a transcendental event in recent history, one that is starting to have notable effects on not just your conversations at home, but also your attention as a consumer, which has been shifted and will incrementally continue to do so for the rest of the year.

How to navigate market volatility digital marketers

But what stocks have been affected? Well, some of them are related to the fact a Trump win might translate into Taiwan not getting as much support from the US as in previous years, which could be a threat to these companies that fully rely on the island for semiconductor manufacturing. Because without strong Taiwan and China’s moves to take over the island, the industry could be disrupted. A clear example is NVIDIA which despite breaking records in its strong financial and stock performance, recorded a 25% drop in value between June, when it peaked at $135, and the beginning of August, which at the time of this writing sits at $104AMD has also seen a decline of around 27%

In fact, as noted by Don Uy-Barreta, an economist and professor at Hult International Business School, who shared his insights with Sapiens on global markets, the recent decline in stocks such as AMD and TSMC is largely due to government actions aimed at restricting exports to competing nations and preventing China from accessing these technologies. Uy-Barreta also emphasized that 'the U.S. will need to step up and protect Taiwan more because of TSMC'. 

Don also mentioned that with inflation numbers coming in better than expected and the anticipated rate cut from the Fed next month, we might avoid the recession that many have been predicting. (Uy-Barreta, August 15, 2024).

What should business owners and digital marketers do during the time of uncertainty?

Of course, our first instinct might be to cut the marketing budget or anything that doesn't directly contribute to sales. However, there are more effective ways to navigate this situation. Here's how:

  1. Save the digital marketing budget for a rainy day

Uncertain times often translate to reallocating your marketing budget. Many times companies make the mistake of cutting marketing spending in down times, which can literally kill the business or get yourself behind. Marketing efforts should almost never stop. What is important, is to relocate resources to not-so risky options such as meta and YouTube paid ads, which are overused at the moment because of the election campaigns. Although, this doesn’t mean your company should stop using paid channels, definitely be more conservative about it, since people’s attention is currently on politics, more than ever before. 

During this period, product launches and major rebranding efforts may be risky, as they demand attention that is currently focused elsewhere. Instead, focus on organic marketing channels like TikTok and Reels videos, LinkedIn content, which has higher chances of going viral organically, as well as email marketing and SEO. While SEO takes time to show results, it will significantly improve your company's visibility and positioning. Prepare your digital marketing strategy for both the pre-election and post-election recovery period.

Therefore, what we will see in the upcoming months is mainly two things. First, companies maintain budget reserves, until the market starts stabilizing a couple of months after the elections, since then new policies, and the direction of the country, as well as geopolitics will be clearer. Second, and as a consequence of the first one, the prioritization of risk-averse marketing strategies. 

  1. Monitor Industry-wise market value 

Knowing how to monitor the market in uncertain times like these, is crucial. If a company only focuses on marketing trends without looking at the macro ones, then it might be missing quite a lot of data, and misread the market, which can translate into a lower ROI than expected. 

Things like the stock market crash and industry news can be very good indicators of where attention is expected to shift to in the long/short term but also momentarily like what’s happening now with the elections. Although, if it’s something like a concert or the superbowl, which the attention shifts tend to only last for the day of the event or a week, but not more than that, then you should not pivot so aggressively as if such events were to last for months, which would call for a complete shifts in marketing strategy. 

Therefore, avoid basing your marketing planning solely on competitors or current trends; focus instead on macroeconomic factors.

  1. Plan for Post-Election Recovery 

Although the market is somehow unstable and will most likely continue to be so until election day or some time after, it must be noted that market volatility is often temporary, especially if this is influenced by elections and the geopolitics trends this might cause. 

There will still be a lot of question marks even after the elections, no matter who the winner is. This is because of new foreign policies as well as new scenarios thought to cope with a potential upcoming recession. If this is the case, consumers will cut their spending as well, which means during the first months of 2025, we might still experience a shy market, but once that starts fading away, more aggressive strategies like PPC might be oversaturated, as well as the presence of product launches, and even rebrandings. 

When the time comes, a re-evaluation of the situation is crucial, instead of blindly jumping on strategies that previously worked, because the market is plastic, and keeps evolving. Something that worked yesterday might not work tomorrow. 

Therefore strategies that are best to be avoided during the current situation, should be considered and if the market allows it, implement it gradually. These can range from paid media, major rebranding, doubling down on content marketing, to community building or even executing and promoting the expansion to new markets.

Conclusion

As the election approaches and the market remains fragile, you should adopt a cautious yet strategic approach to your marketing operations. This involves saving resources for more stable times, as well as focusing on organic and less risky marketing channels, and closely monitoring industry trends. The post-election period will likely offer opportunities for recovery. That said, it’s key to re-evaluate the situation before implementing strategies that worked in the past. By gradually reintroducing more ambitious campaigns, companies can effectively capitalize on the market’s eventual return to normalcy while minimizing risks.

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