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Economic uncertainty has brands hitting pause on marketing plans. This week, we examine whether cutting ad spend during downturns is strategic or self-sabotaging. Plus, what the research says about marketing moves that win in challenging times.
—Elena
Brands that grow ad spend during downturns gain more market share.
This statistic shows that businesses boosting ad spend by up to 50% during downturns saw market share growth of 1.5% compared to just 0.2% for those who cut back.
Market smarter in uncertain times.
When economic uncertainty looms, brands face a critical decision about their marketing strategy. Research spanning nearly a century reveals that how you respond can determine your market position for years to come.
- Playing offense beats playing defense. Brands that maintain or increase advertising during downturns gain significant market share—both during the economic slowdown and in the recovery period that follows.
- Cutting spend rarely saves money. While it might feel like a logical cost-saving measure, reduced marketing typically leads to decreased sales, lost market share, and diminished long-term earnings.
- Every impression must count. Instead of drastically cutting budgets, focus on making marketing more efficient. Expand targeting parameters rather than hyper-targeting, which often leads to high CPMs and limited scale.
- Kill your marketing "zombies." Economic pressure creates the perfect opportunity to eliminate underperforming tactics. That might mean rethinking branded keyword spend, third-party data targeting, or other initiatives that haven't demonstrated clear ROI.
- Never waste a good crisis. Innovative marketing solutions often emerge from challenging times. Brands like Uber ("Thank you for not riding") and Burger King ("Quarantine Whopper") turned pandemic restrictions into creative campaigns that strengthened their brand connection.
“A Critical Review and Synthesis of Research on Advertising in a Recession”
This analysis examines over 40 studies across nearly a century of economic downturns, offering data-backed insights on advertising effectiveness during recessions.
Visibility today is growth tomorrow.
“When times are good you should advertise, when times are bad, you must advertise."
— Unknown