How and Where to Allocate Your Marketing Budgets in Tough Economic Times

6 Marketing Budget Tips for a Recession

If you’re wondering about the value of advertising during a recession, you’re not alone. The data shows it's one of the smartest moves a brand can make when done strategically. Here’s how to allocate a marketing budget smartly during tough economic times.

1. Double Down on What Works

Start by auditing your past campaigns. Where have you seen the highest ROI: social ads, email marketing, SEO, influencer partnerships? No more guessing games or “spray and pray” strategies. 

Shift more dollars to the channels and tactics with a proven track record. Prioritize what performs.  

Tip: Use tools like Google Analytics, HubSpot or your CRM to track conversion sources and customer acquisition costs (CAC).

2. Invest in Owned Channels

Owned channels like your website, blog, email list and social media profiles offer control and lower long-term costs. In a downturn, these are your strongest marketing assets. Optimize these channels first before deciding to allocate budget toward advertising. 

• Email Marketing: Keep in touch with your audience and nurture leads for when they’re ready to spend again.
• Website: Publish keyword-focused blog posts and/or landing pages to generate traffic for free.
• Social Media: Generate visibility by maintaining a consistent social presence on the networks that matter.

3. Take Advantage of Low Competition

Believe it or not, advertising during a recession can actually save you money—because guess what? Fewer brands are bidding for ad space, so your dollars stretch further.

One of the biggest mistakes companies make is cutting advertising altogether. If you can avoid it, please, please, please don’t do that. Instead, focus on advertising during a recession with precision:

• Narrow down targeting to reach high-intent audiences.
• Run retargeting and lookalike campaigns to reduce acquisition costs.
• Shift objectives from awareness to high-intent traffic.

Brands that continue to advertise during a recession often gain a competitive edge. With fewer competitors bidding for ad space, your cost-per-click will likely decrease, meaning more exposure for less spend.

4. Test and Optimize Relentlessly

Every dollar counts during economic downturns. Adopt a test-learn-scale approach. A/B test any and all creative from your email subject lines and calls-to-action to ad graphics and landing page layouts. Small tweaks can lead to big savings.

Note: Results from an A/B test on one channel won’t necessarily carry over to others. Test on all your channels to know what works best for each audience.

5. Lean into Strategic Partnerships

Cross-marketing is your friend, especially during these tough times. Partnering with like-minded brands can double your reach while halving your spend. Partner on webinars, giveaways, ads or events to pool resources and audiences. The only thing better than a business surviving a recession is two businesses surviving a recession together.

6. Improve Customer Retention

Your brand isn’t the only one struggling. Your customers are, too. And since it costs less to keep a customer than to acquire a new one, allocate your budget toward loyalty programs, referral incentives and excellent customer support. Happy customers are your best marketers, especially when budgets are tight.

Final Thoughts: Stay Visible When Others Go Dark

In uncertain markets, many companies pull back. But advertising during a recession can be a powerful way to boost visibility, gain market share and build long-term brand equity while your competitors go quiet.

By reallocating marketing dollars wisely and keeping your strategy agile, you won’t just survive—you’ll be poised to thrive when the economy rebounds.

Need a partner to guide your marketing through tough times? At Elevate My Brand, we specialize in helping companies make smart, data-driven decisions that maximize ROI, no matter what the market looks like. Let’s elevate your strategy!