Strong Economy - Layoffs Disconnect. What it Means for your Digital Marketing.

Last week, I wrote about the waves of layoffs starting about a year ago in tech, and now spreading to other sectors.

CNBC has a greater context video (12 minutes) to support my observations.

The video tries to explain why layoffs started happening at 02:26. It touches on how rising interest rates puts pressure on the need for marketing to perform.

In a higher rate environment, investors like Thiel or Andreessen putting money into a tech stock feel pressure. "Why should I keep putting my money into Metaverse spending (losses), when I can instead put my money into some minimum guaranteed returns (bonds, etc.)", and or "That money I invested into Facebook was borrowed at almost no cost, but now, with rates rising, I have to pull out."

The lessons for digital marketers is to ensure your spending and objectives are disciplined at every phase, or else your department too will join the ranks of layoff waves encroaching into other sectors.

Real Life Best Practices: If you, for example, as a Marketing Director or CMO are put in a pressured situation to take on an expensive, ill-advised campaign, then:

1. Document the fact that you do not agree with doing this campaign, but will do it anyway with 100% dedication. Carefully state your reasons why you think it is not a good idea. Keep the emotions and politics out. A simple email exchange with your supervisor and or another trust-worthy department head is all you need. Keep it handy when you need to defend yourself.
2. Have face-to-face time with your supervisor (or your supervisor's supervisor if your supervisor is the misguided one pushing this bad campaign on you). Go out for a beer or sushi together. Explain the situation and your feelings. Keep it professional and factual. Ask him/her for his support to defend your in case things go badly.