Arthur Freydin discusses optimizing social media ads in uncertain times

Arthur Freydin

May 9, 2022

Arthur Freydin

Arthur Freydin offers insights for small businesses assessing budgets and ad spending in trying times.

In challenging economic or social times, the ordinary struggles small businesses face are amplified. For e-commerce enterprises, Arthur Freydin advises many start to consider if and when cutting costs is necessary.

For some, the marketing budget seems a likely place to reduce spending without impacting personnel. However, cutting an ad budget when other options remain can be detrimental, particularly when ads are responsible for bringing in new customers or driving sales.

Arthur Freydin examines marketing spend

Historically, marketing budgets that remained robust in tough times, such as a recession, provided increased returns for the company. According to Harvard Business Review, some companies even increased spending and bounced back better than ever. Many studies on the benefit of marketing through an economic downturn did focus on traditional marketing channels, but there is strong evidence the same principles hold true, even in the social media ad space.

Arthur Freydin advises businesses need to look at marketing spending in downturns as necessary. They can address the changing times by spending smarter.

At his boutique marketing firm, Tandem Marketing, Freydin approaches advertising with the BASIC model, a five-pillar approach that amplifies what works and removes what doesn’t. A data-driven approach is essential for avoiding ad spend on ineffective options that do not boost the bottom-line for a business.

Stay focused on strategy

BASIC is key because it helps businesses stay focused on data. There is no need to second-guess information as all points are clearly verifiable via analytics. With BASIC, Arthur Freydin helps customers establish baselines and stay focused on return on ad spending from the beginning.

There is a focus on lower customer acquisition costs as well as cost per click while retiring ineffective ads and scaling those that resonate with customers. In an economic downturn, consumer tastes are impacted by budgetary concerns, so ads that traditionally connected may not work. Tests and a quick commitment to ad opportunities driving results is key.

While driving sales, social ads can also provide intelligence for senior leadership to use in other aspects of the company, such as research and development or new product acquisition.

Remember core products

For certain businesses, social ad spend actively promoting new products makes sense according to Arthur Freydin. However, for companies with a stable inventory and unique product offerings, a part of the ad mix may also need to focus on buyer favorites. In a recession, buyers do remain committed to investing in high-qualtiy, established goods even as overall spending declines. To maximize the social spending budget, multiple ad types may be beta-tested to ensure the messaging aligns with current conditions.

Review bottom line with new item ads

Many successful e-commerce businesses, such as boutiques or reselling businesses, rely on inventory evolving with the seasons, so there is no avoiding ad spend on new items or product lines. Arthur Freydin recommends focusing on returns with ad spend on new products. It’s important to find a balance between the highest-performing ads and sales to maximize the budget. Key sales metrics, such as net profit per item, can help determine if there are ad opportunities with higher costs that still push revenue ahead or even accelerate earnings.

Because consumer fatigue is more prevalent in high-stress times, frequent tune-ups in all areas are required.