It doesn’t take us reading many news stories these days to understand there’s uncertainty in the market. When uncertainty happens, many businesses instinctively cut their marketing budgets, believing it’s a cost-saving measure. However, historical data and marketing research show that brands that continue investing in digital marketing, SEO, and advertising during recessions outperform competitors in the long run.
If you want to increase brand awareness, boost customer loyalty, and stay ahead of competitors, here’s why keeping your marketing strategy strong during economic uncertainty is a smart business move.
1. Less Competition, More Brand Visibility
When the economy slows, many businesses reduce advertising spend, leaving more space for brands that stay consistent.
A Harvard Business Review study found that businesses that increased their marketing efforts during recessions gained market share over those that cut back. For example: Amazon expanded its marketing budget during the 2008 financial crisis, leading to a 28% revenue increase, while competitors struggled.
2. Consumers Are Still Buying; They’re Just More Selective
Economic uncertainty doesn’t mean people stop spending money. It means they spend more carefully. Consumers prioritize trusted brands, value-driven purchases, and companies that maintain strong customer relationships.
According to McKinsey & Company, 60% of consumers switch brands during economic downturns to find better deals and more trusted options.
What’s the solution to keeping your customers? Keep investing in content marketing, social media engagement, and email marketing to build brand trust and stay top-of-mind for customers.
3. Advertising Costs Drop, Giving You More ROI
During recessions, fewer businesses invest in Google Ads, Facebook Ads, and PPC campaigns, leading to lower advertising costs. This means brands that continue advertising get more exposure for less money.
Data from The Wall Street Journal showed that during the COVID-19 pandemic, Facebook and Instagram ad costs dropped significantly, providing a huge advantage for businesses that continued investing in digital advertising.
4. Marketing Builds Brand Trust & Customer Loyalty
In uncertain times, consumers seek stability. Brands that stay active on social media, maintain email communication, and provide valuable content reinforce trust and loyalty. This is where customer testimonials can help encourage brand loyalty. It can also be helpful to send out personalized emails to strengthen the relationship with your current customers and potential audience.
5. Companies That Invest in Marketing Recover Faster
Businesses that continue to market themselves during downturns are better positioned for success once the economy improves. If everyone cuts back on marketing, it becomes a buyer’s market in the advertising space since they have more space. This allows organizations to do more and have more of a presence. During the 1990-91 recession, McDonald’s reduced its advertising, while Pizza Hut and Taco Bell increased theirs. The result?
- Pizza Hut’s sales increased by 61%
- Taco Bell’s sales grew by 40%
- McDonald’s sales declined by 28%
These organizations took advantage of the overall market, and came out better at the end of the recession.
While cutting marketing costs might seem like a short-term solution, businesses that stay visible, engage customers, and invest in digital marketing will thrive during and after economic downturns.
Need help crafting a marketing strategy? Juxt Marketing specializes in SEO, content marketing, social media strategy, and digital advertising to help businesses grow, even in uncertain times. Contact us today to get started!