Economic downturns, recessions, and spells of uncertainty can throw even the most stable businesses off balance. For marketing managers and business leaders, one instinct rises above the rest during these periods: trim the budget, starting with advertising and marketing.
While this might appear to be the safest route, the data and decades of case studies tell a different story. Consistent advertising during economic challenges not only protects brand visibility, but can actually deliver outsized long-term gains.
When Budgets Get Tight, Advertising Is First to Go (But Shouldn’t Be)
It’s a common scenario. The economic headwinds hit, financial teams circle the wagons, and the first solution on the table is to cut ad spend. On the surface, cutting marketing costs provides immediate savings with little obvious pain.
But here’s the counter-intuitive truth: Companies that pull back lose traction. Their brand slips from customers’ minds, their sales funnels dry up, and when recovery comes, it’s an uphill struggle to regain lost ground. As the saying goes, "When times are good, you should advertise. When times are bad, you must advertise." The reality? Advertising is the engine that keeps your business visible and relevant when people are making spending decisions more carefully.
Share of Voice Is Share of Market
Advertising doesn’t happen in a vacuum. The moment a competitor goes silent, the playing field shifts. Share of voice (SOV)—your presence in the advertising space relative to competitors—increases if you stay active when others retreat.
History shows that brands that maintain or increase their SOV during downturns often gain market share. Why? With fewer messages competing for attention, your advertising breaks through more effectively, reaching customers who are still spending (and those newly open to switching loyalty).
Build Trust When It Matters Most
When uncertainty rises, people crave stability. The brands they see regularly become familiar anchors in a shifting landscape. Staying visible during tough times signals that your business is steady, reliable, and committed to your customers.
But it doesn’t stop with presence alone. Sharing stories of empathy, community involvement, and flexibility in your messaging creates an emotional connection and strengthens brand loyalty. Companies that demonstrate understanding and care during hard times will be the ones consumers remember when things improve.
Lower Ad Costs, Higher ROI
During downturns, ad inventory becomes more accessible and affordable. Platforms ranging from local radio to digital media offer better deals as demand temporarily falls. This lower cost, paired with less competition, gives your message more impact for every dollar spent.
A well-timed campaign can stretch further, making now a period of exceptional value for businesses willing to play the long game. While others hibernate, your brand can build enduring impressions at a fraction of the normal cost.
Case Studies: Brands That Won by Staying in the Spotlight
History is filled with brands that leaned into strategic advertising during downturns and reaped major rewards:
Kellogg’s vs. Post (Great Depression)
What They Did: During the Great Depression, Kellogg's made a bold move by doubling its advertising budget while many competitors cut back. The company invested heavily in radio advertisements and marketing campaigns, promoting its new cereal, Rice Krispies. This strategy paid off, as Kellogg's not only survived the economic downturn but gained significant market share. By staying visible and innovative, the brand cemented its position as a household name during a challenging time.
How It Paid Off: With catchy messaging like the "Snap, Crackle, Pop" slogan, Kellogg’s captured consumer attention and positioned itself as a household staple. This aggressive advertising strategy not only solidified its brand presence but also led to a 30% increase in profits, securing Kellogg’s position as the market leader during a challenging economic time. Meanwhile, Post, once a strong competitor, struggled to keep up and saw its market share decline significantly, ultimately falling behind as Kellogg’s dominated the cereal industry.
Procter & Gamble (2008 Recession)
What They Did: While competitors scaled back their advertising efforts, the team at Procter & Gamble maintained a consistent ad presence across key platforms. They focused on high-performing channels and optimized campaigns to ensure maximum reach and engagement. By doubling down on targeted messaging and adjusting budgets strategically, they stayed visible to their audience during a time when others pulled back.
How It Paid Off: This strategy resulted in a significant increase in market share for P&G during the competitive slowdown. With fewer advertisers in the space, ad costs dropped, allowing the team to achieve a 20% lower cost-per-click (CPC) and a 15% higher click-through rate (CTR). This not only kept their brand top-of-mind but also drove a 25% increase in customer acquisition, positioning them as a leader in the market when others struggled to stay relevant.
Airbnb vs. VRBO (COVID-19)
What They Did: Airbnb maintained a proactive approach during challenging times, focusing on clear and adaptive messaging to stay connected with its users. The company quickly shifted its platform to highlight local and stay-cation opportunities, catering to travelers seeking nearby escapes during restrictions.
How It Paid Off: This strategic pivot allowed Airbnb to maintain user engagement and demand, resulting in a faster recovery compared to competitors. By the third quarter in 2020, Airbnb had seen a strong rebound, with revenue reaching $1.34 billion—only 18% lower than the same period in 2019, despite the global travel slowdown. In contrast, VRBO adopted a more cautious approach, pulling back on marketing efforts and communication. This reduction in visibility during a critical period resulted in a slower rebound and a diminished presence in the minds of travelers. Without strong messaging to adapt to shifting traveler needs, VRBO struggled to compete with Airbnb’s rapid adjustments, leaving a lasting impact on its market position.
These real-world examples show that recession-proof advertising isn’t just a theory. It’s a practical, battle-tested strategy.
Build Emotional Connections
During challenging times, hard sales pitches often fall flat. Consumers seek understanding and connection, not pressure. Shift your focus to emotional branding by sharing stories of perseverance, community impact, and values. Highlight how you’ve helped customers, supported your team, or contributed to your local area. This builds positive associations and fosters lasting relationships.
Maintaining a strong brand presence during tough periods also positions your business to lead the recovery. When the economy rebounds, brands that stay visible and connected are top of mind, ready to capitalize on renewed demand, while others struggle with high reacquisition costs and lost loyalty. Focus on resilience and partnership now to ensure long-term growth.
Channel Selection Matters When Marketing in Tough Times
Maximize your advertising ROI in a recession by choosing cost-effective, high-impact channels. Focus on platforms your ideal customers frequent, such as:
- Local Radio: Strong reach and trust within communities, often with advantageous rates during downturns.
- Social Media: Cost-effective targeting and fast messaging adjustments as consumer sentiment shifts.
- Email Marketing: Direct communications with audiences who already know and trust your brand.
- Print & Community Media: Strong recall and local influence, especially valuable if competitors pull out.
A focused approach beats spreading resources too thin. Make each channel count, maintain clear and consistent messaging, and ensure your creative stands out for empathy and reliability.
Keep Your Competitors Guessing
Consistency can play offense, too. While your silent competitors lose traction, your powerful presence can attract their customers and leave them unsure how to respond. Capturing attention when rivals are complacent locks in long-term advantages.
By the time competitors decide to restart advertising, regaining share of voice and customer loyalty takes far greater effort and budget than if they’d simply stayed visible.
Future-Proof Your Brand With Strategic, Consistent Advertising
Economic shifts will always come. The winning brands accept uncertainty, respond with resilience, and understand that visibility is key to survival and growth.
By resisting budget-cutting instincts and shaping advertising to meet customers where they are, your business will be seen as a leader, not a follower. The pay-off? Stronger market share, deeper loyalty, and a brand that’s built to last.
Looking for expert help to stay visible and effective—even in uncertain times? Connect with Zimmer to craft a cost-effective, strategic advertising plan that keeps your business front and center, no matter what the market does next.