Navigating Economic Uncertainty: Marketing Strategies for U.S. SMBs and Startups for Year-End and Beyond

Throughout 2023, the United States has been a hotbed for startup activity. In the first quarter alone, more than 330,000 companies began trading. While this is good news, 2023 has also brought challenges for startups. Relatively high costs of borrowing and a sense of growing economic uncertainty overall have made it harder to plan ahead. As the year is drawing to a close, this is a critical time for leadership teams to streamline their marketing strategies and put themselves into the best position for attracting U.S. customers in the year ahead.

Assessing Market Opportunities

Assessing and understanding market opportunities is the first step toward taking advantage of last-minute business opportunities at the end of 2023 and putting your startup in the best position for 2024.

Although American businesses and consumers are reporting a sense of uncertainty, the economy overall and the jobs market continue to perform well. There are opportunities for businesses in almost every industry. To understand how your startup can take advantage, research industry trends and specific consumer needs relating to your product or service.

Some trends apply to the majority of businesses. For example, social media channels are becoming more important for American consumers to do their shopping. Could your startup benefit from that?

Leveraging Digital Marketing

Digital technology has changed marketing almost beyond recognition. As a startup planning a 2024 marketing strategy, you have a far wider choice of outlets to reach clients available to you compared to the beginning of the century.

Plus, digital marketing channels let brands target their audiences precisely. Not only does that make it easier to reach U.S. audiences as opposed to other nationalities, but it also allows you to target specific regions within the country. Choose channels that are popular with audiences in the localities your startup wants to reach.

Tailoring Your Marketing for U.S. Consumers

While there are global consumer trends, it is surprising just how much consumers in different regions vary in their preferences. If your startup is looking to attract a U.S. audience, your marketing strategy needs to address their pain points and deliver solutions to those problems.

Here is an example: research shows that American consumers worry about the state of the economy. Even though the job market remains strong, consumers are watching what they spend, and the use of budgeting apps has grown. Fintech startups can tap into this concern by showing how their product helps American consumers make their dollars go further.

Similar opportunities exist in other industries. To find them, startup brand teams can use marketing analytics and understand consumer behaviors relating to their field. Based on those findings, developing actionable insights becomes easier.

Building Local Partnerships Through Marketing

No matter how much of the economy is based online or operating globally, people like buying from people they feel a connection with.

Startups in all industries can tap into that need for connection by forming strategic marketing partnerships with leading local businesses or distributors, thus reducing the perceived distance between the brand and its audience. Collaborating with local influencers is another great way to access specific markets. Influencer marketing delivers a third-party endorsement that builds brand trust and develops your startup’s presence with your target audiences.

Strategic Content Marketing for U.S. Audiences

Content marketing does more than inform audiences about products. Rather than aiming for an immediate sale, it connects to potential customers by providing relevant, valuable information that can help solve consumer problems or address the pain points mentioned above.

How-to videos have been hugely successful with U.S. consumers recently. After music videos or comedy video content, these explainer videos are among the most watched by U.S. internet users. Creating them does not need to be costly or time-consuming. One of the simplest videos to start with would be to explain your startup’s big idea to potential consumers.

Integrated Marketing Communications for U.S. Expansion

How easy is it to recognize your brand across different digital marketing channels? Integrating startup marketing communications multiplies their impact. Granted, different channels are preferred by different audiences and lend themselves to different types of content.

However, a cohesive brand message that is aligned with your business goals should shine through all those communications. By integrating marketing and brand messages, your startup will not only make it easier for potential customers to recognize your communications. Cohesiveness also helps build consumer trust as your brand becomes known as reliable and consistent.

Budgeting and Funding Marketing Initiatives

Developing a marketing budget for a startup has always been challenging, and your 2024 startup digital marketing budget is no exception.

One way to approach setting a budget would be to look at your overall budget and take a percentage of that. On average, startups spend just over 10% of their budget on marketing activities. Once our brand team knows that figure, they need to choose which marketing strategies are likely to deliver the best returns.

If your startup is at least one year old, looking at the performance of your marketing strategy during the current year is a great starting point. This allows you to choose the tactics that deliver the highest possible revenue.

Next, it is important to evaluate your digital marketing channels and ask whether they are delivering what you expect them to deliver. Over time, audiences shift, and your brand needs to move with them to continue engaging with existing customers. Alternatively, you can also choose to pursue new audiences and expand your brand’s reach.

Final Thoughts

Despite economic uncertainty, startups and small and medium businesses (SMBs) aiming for the U.S. market have never had a greater choice of marketing channels and greater access to insights to help connect with new and existing audiences than they do at the end of 2023 and the beginning of 2024. By understanding the needs of those audiences and tailoring their marketing messages to address those needs, businesses are putting themselves in the best position to thrive.