Do It Despite What You Know: Marketing in Hard Times
It’s no secret that marketing is one of the first “expenses” on the chopping block during economic downturns. This tendency stems from a misunderstanding: marketing is a powerful investment, not a costly expense. As an award-winning marketing agency with 16+ years and 400+ clients under our belt, we have seen time and time again that this negative belief about marketing is B.S. In this blog post, I’ll share why maintaining your marketing budget during uncertain times is the best business decision you can make.
Marketing Is an Investment, Not an Expense
Many business owners see their marketing expenses and immediately think, “Why am I paying for this? What's the immediate return?” When revenues dip, this cost-focused thinking leads to a drastic decrease in marketing budgets as an attempt to preserve the bottom line. It may feel logical on the surface, but this approach is what happens when you don’t understand what marketing actually does.
Marketing isn't just creative campaigns and social media posts, although that is a big part of it. Marketing is the engine that generates awareness for your brand, builds relationships with your audience, nurtures leads throughout the buyer journey and ultimately drives your final revenue. When you cut marketing, you're not just reducing expenses, you're restricting your brand’s ability to grow and, ultimately, create long-lasting relationships.
Break the Feast-or-Famine Cycle
One of the most critical consequences of treating marketing as an optional expense rather than a necessary investment is the feast-or-famine cycle it creates. Here's how it typically plays out:
- Business is good, so you invest in marketing.
- Marketing generates leads, and sales increase.
- You get busy fulfilling orders and serving clients.
- Marketing gets pushed aside as you focus on delivery.
- Sales dry up once marketing projects end.
- Panic sets in, and you spend much more to restart marketing.
- Repeat.
This “stop-start” approach is inefficient and inevitably drives up cost. A lot. Building momentum and gaining an audience takes time, and each time you pause your efforts, you lose ground that must be regained the next time you start again. The most successful businesses maintain consistent marketing efforts regardless of how busy they are, which allows them to ensure a steady flow of new business opportunities. So, to see growth and long-term success, make sure marketing is at least consistent (if not elevated) in your annual budgets.
The Compounding Returns of Consistency
Brand awareness, customer trust and market positioning aren't built overnight; they are the results of consistent marketing and strategy. When you maintain, you show a long-term commitment to your customers and partners, fostering better brand loyalty. There are also a host of other benefits to consistent branding in marketing, including productivity and depth of emotional connection.
Zig When Everyone Else Zags
Historical data shows that the brands that maintain or increase marketing budgets during recessions emerge stronger when conditions improve. When competitors reduce their digital and experiential presence, the brands that increase their presence become louder by default. The marketplace becomes less crowded, advertising costs often decrease, and the opportunity to gain market share is handed to brands on a silver platter. Companies like Amazon, Netflix and Airbnb have all used economic downturns as opportunities to double down on marketing, and have emerged as industry leaders because of it.
Reframe Marketing in Your Budget
So, how should you think about marketing while planning your budget? Here are a few perspective shifts you should make:
- From expense to asset: Marketing creates intellectual property, content and systems that continue generating customer loyalty and sales over time.
- From cost center to profit center: Track marketing ROI consistently and clearly to see it as a revenue generator rather than an expense.
- From discretionary to essential: Just as you wouldn't consider your sales team "optional", marketing should also not be considered “optional”.
- From short-term to long-term: Evaluate the success of your marketing over appropriate timeframes, understanding that some campaigns build value gradually.
Make Marketing Work Harder
The solution isn't necessarily to spend more, but instead to spend smarter. Focus on measurable channels where you can clearly track ROI. It might start small, but with consistency and time, growth will happen. So, be ready. Change is inevitable with any business, especially in marketing. So, your budget for marketing should be able to withstand the times—not only to compete but to free up your team to focus on what really works.
Final Thoughts: The Path Forward
The most successful businesses and powerful brands don't ask, "Can we afford to do marketing?" They ask, "What budget do we need to grow effectively?" They understand that consistency is the key that separates sustainable brands from those that constantly struggle.
By shifting how you view marketing, you ensure your brand thrives even in challenging times. Marketing isn't an option if you want to play in the sandbox with legacy brands.
If you’re ready to build a strategy and hit those marketing goals, reach out! We’re here to see you succeed.
Nina Pal,
Intern
Recession-proofing your marketing will take more than reading a blog post—but it wouldn't hurt to read one more. Check out our other articles on building your brand and maintaining your marketing amid hard economic times:
