By Ben Zimmerman, President of SmartMedia technologies.
You’re not alone if you’ve heard that the economy has been on a roller coaster since 2019. After the outbreak of Covid-19, lockdowns, travel restrictions and other measures were introduced to reduce the spread of the disease, but they also ended. which led to the shortest recession in US history. While some sectors have recovered, the last few years have felt a bit shaky.
So are we headed for another recession? A few months into 2023, the verdict is still pending. As some point out, the argument may be a matter of semantics. The word “recession” has many interpretations, after all, but the National Bureau of Economic Research (NBER) has stated that we are not in a recession. Some benchmarks have sent mixed messages, making it difficult to draw clear conclusions about the future. In 2022, the inflation rate in the US was 8%, compared to 4.7% in 2021. Conversely, unemployment rates have reached historic lows, falling to 3.4% in January 2023 , the lowest level recorded since May 1969.
As a business owner, you may feel pressure to predict the future. But let’s face it. Trying to anticipate every turn the market takes is an impossible game to win. So what can you do? Here’s a secret: You don’t need a crystal ball to succeed. In times of turbulence, it is crucial that companies remain vigilant and make wise decisions. And simply playing it right might not cut it.
Opportunity breeds innovation.
It’s a well-observed business maxim that opportunity breeds innovation, and businesses can succeed even in times of economic uncertainty. For example, Uber identified an opportunity in the transportation sector during the 2009 global financial crisis (although its ride-sharing service did not launch until later). It now offers a popular and affordable means of transportation. The company leveraged innovative technology to create new opportunities and disrupt traditional industries. And it’s still a household name.
So, should you be putting all your funds into research and development? Not exactly. Implementing cost-cutting measures during economic uncertainty is prudent. Focusing on maintaining strong customer relationships is prudent. These are all sound business policies that you should not ignore. But companies can also diversify their offer, look for new markets and invest in new technologies. In other words, they can push their limits. As they say, when the going gets tough, the tough get going, and while some brands play it safe, trailblazers know how and when to take risks.
Economic ambiguity can create gaps in the market. It is during these times that traditional solutions are ripe for disruption. Consumers may change their spending habits due to emerging trends. Or they may be more willing to switch to alternative products as they become more selective about their purchasing decisions. And whether you’re developing a new product or reimagining an existing one, one of your top priorities should be nurturing your sales funnel with healthy lead volume.
You can increase your ad spend with evolving technology.
By identifying gaps and listening to consumer needs, companies can create solutions to fill them. One of the disconnects I’ve noticed is between consumers and big advertising. By 2021, Google, Facebook and Amazon alone were expected to capture more than 60% of US ad spending, according to eMarketer. Recently, trust in the technology sector has become one of the lowest of all sectors, with 32% of respondents viewing it as less reliable than other sectors, according to a study by the Public Affairs Council and Morning Consult in 2021. Consumer confidence in data security is also a concern, as 2019 Pew research showed that 70% of adults said their personal data is less secure than it was five years ago.
As president of a company that provides a Web3 enterprise platform, I have found that Web3 has emerged as an innovative interlocutor between advertisers and consumers. Web3 is decentralized, often leveraging blockchain technology for data storage, and is not controlled by any entity. Compared to traditional online advertising platforms, which are largely controlled by large technology companies, Web3 advertising could offer greater transparency to advertisers and consumers. Web3 advertising could also create more meaningful interactions. One way to achieve this is through opt-in ads, which allow consumers to decide what data they want to share with advertisers. On the other hand, advertisers can track the effectiveness of their campaigns in real time to provide consumers with more targeted and engaging content.
Here’s how to get started with Web3 advertising.
Getting started with Web3 advertising requires understanding the fundamental concepts of blockchain, smart contracts, and decentralized applications. To develop an effective strategy, consider your company’s goals and objectives for Web3 advertising. Determine if your target audience will be receptive to decentralized platforms and willing to engage with the Web3 ecosystem. From there, you can experiment with Web3-enabled ad formats. For example, you might consider using NFTs to create collectible digital assets. Or you can use decentralized funding to incentivize testimonial-based rewards or gamified experiences.
Collaboration with Web3 experts can also help start the experimentation and implementation phases. This may mean seeking guidance from consultants, blockchain developers or specialist marketing agencies to help you navigate the complexities of this emerging field. Together, you can identify the best strategies for leveraging Web3 platforms that align with your goals and your industry.
From NFTs to decentralized finance companies, Web3 has already started making waves. As I mentioned earlier, increasing ad spend during economic uncertainty can help increase brand awareness and help you differentiate yourself from the competition (who might otherwise reduce ad spend) while building loyalty the customers. And increasing your ad spend with Web3 tactics can not only help you stay ahead of the curve, but also help increase consumer confidence.
As economic uncertainty continues to shape businesses, the pressure to innovate grows even more intense for companies to remain competitive and profitable. Innovating in such an uncertain climate can be intimidating, but it’s not impossible ― in fact, for those companies who manage to do it right, they will come out the other side stronger and better positioned for future success.
At Ikaroa, a full stack tech company, we believe that innovation is key to thriving in times of economic ambiguity. We empower our clients to innovate using our cutting-edge solutions and services, like our AI-driven Big Data analysis and digital transformation capabilities, to uncover new opportunities, goals and strategies that will help them realize their business objectives.
For example, leveraging AI can provide predictive insights into markets and customers that can help companies make educated decisions and move quickly in the ever-changing markets, even when uncertainty dominates. AI-driven automation can also help companies optimize processes, boost productivity, and create efficiencies, which could ultimately save them money in the long run.
Big data can provide critical business insights that can help executives make effective decisions and spot emerging trends to capitalize on them. Skilled professionals, with the help of analytics, can anticipate customer behavior, understand customer preferences, and create meaningful customer experiences.
In times of economic ambiguity, digital transformation is vital for companies. Utilizing digital transformation enables companies to create more meaningful customer experiences and showcase their long-term success. Companies like Ikaroa can help companies create a seamless digital experience by leveraging a wide range of services such as modernizing application and business processes, leveraging the cloud to support increasing volumes of data, and deploying innovative strategies for communication solutions.
Ultimately, businesses should embrace the concept of digital transformation, a term often used to describe the process of modernizing legacy systems and incorporating new technologies such as artificial intelligence (AI), big data, and cloud computing. By doing so, companies will be able to stay ahead of the competition, remain agile, and drive innovation in times of extreme economic uncertainty.
At Ikaroa, we understand the importance of innovation to ensure growth and success, despite changing markets. We are committed to helping our customers succeed and stand out in times of ambiguity, by embracing new technologies and taking advantage of progressive analytics tools. We will be there to guide you to make the most out of the opportunities that lie ahead.