A healthy marketing budget is usually a direct result of an organisation’s success, so when dealing with harsh markets, increased competition and thrifty consumers, it’s common place that the marketing budget is reined in - often to the point of extinction. 

Fine, if the cut is for a short period, perhaps to get you through the tough times, it might even be an effective survival tactic if it’s just for a week or so but as times passes your brand is only going to become more vulnerable and eventually, altogether unknown.

Recession businesses have had it tough for years now but it’s a safe bet that those who are still trading now that the worst is (hopefully) over, didn’t completely go dark when it came to their marketing.

Companies who reined in their marketing spend will have seen their market share decline – if they’re still in business at all - and with it their capacity to compete will be diminished now growth is returning. 

Organisations who retract their marketing budget as a reaction to financial problems within their sector, or the wider market, will notice a knock on effect of that decision as soon as six months later, as the lack of brand promotion and awareness catches up with them, leaving them invisible in their own market place.

Ogilvy’s 2008 report “Doing More With Less: A Point of View on Marketing in a Recession” provides many a good point on why it is important to maintain marketing spend when things get a little tight, and that in fact, it might even be a good idea to increase your budget.

“… companies that are able to increase marketing spend in recessions increase their market share in both consumer and B2B markets. Higher relative share of voice also creates faster growth.”

“Companies that increase marketing spend in recessions recover three times faster in “normal” times. Similarly, B2B companies that maintain/increase spend in a recession achieve higher growth both during the recession and for three years thereafter.”

The advent of digital marketing enables even the most thrifty and cautious of businesses to still market effectively on a shoestring budget, and with research that reinforces the importance of a constant or even increased presence in the market when times get tough, there’s no excuse not to invest in your brand’s profile and make sure it’s unforgettable.

Want to know more about how to market your business effectively on a budget? Talk to us.