Cutting marketing during economic uncertainty is business self-sabotage – Here’s Why
In times of economic downturn or uncertainty, businesses often look inward – streamlining operations, freezing hires, and yes, slashing budgets. In the thick of global economic uncertainty (again), with global growth forecasts slashed, volatile interest rates, and the ripple effects of US tariffs, it’s no wonder brands are looking for ways to save. But one common casualty of these cost cuts can be fatal: marketing.
Cutting marketing when times get tough is like throwing your map overboard because you’re lost. It might feel like a quick win, but long-term? It’s a guaranteed way to stall your business, lose customers, and hand opportunities to your competitors.
Gemma Spinks, Director of Spinks Creative, explores why slashing marketing spend could cost you more than you think – and what you should be doing instead.
Out of Sight, Out of Mind
If people don’t see you, they won’t buy from you. Simple.
Your brand doesn’t live in people’s minds rent-free – you have to earn that space. And in a competitive market, visibility is everything. When you stop marketing, you’re not just saving money; you’re actively making it easier for people to forget about you.
Meanwhile, your competitors? They’re still showing up. They’re still talking to your customers. They’re still building trust and staying top of mind. So when customers are ready to buy, guess who they’ll turn to? (Hint: not the brand that went radio silent.)
Marketing is an Investment, Not a Cost
It’s easy to view marketing as an overhead cost, but that’s the wrong mindset. Done right, marketing makes you money. Every ad, campaign, or piece of content should bring in more revenue than it costs to create.
Cut marketing, and you’re not just cutting expenses – you’re cutting your ability to generate leads, sales, and long-term customer relationships. And once that pipeline starts drying up, the financial strain gets worse, not better.
Rebuilding Costs More Than Maintaining
Here’s a costly mistake businesses make: cutting marketing when times are tough, then scrambling to restart when sales take a hit.
The problem? Rebuilding momentum is far more expensive than maintaining it. The financial cost to regain lost market share after cutting brand advertising is substantial – approximately $1.85 must be spent for every $1 saved by cutting brand advertising.
When you disappear from your audience’s radar, you lose traction. Your SEO rankings drop. Your social engagement tanks. Your email list goes cold. And once that happens, it takes more time, effort, and money to claw your way back. Keeping even a lean, strategic marketing presence is far more cost-effective than starting from scratch later.
Playing Offence Pays Off
A global study of nearly 4,000 companies found that those who kept investing in marketing achieved a 17% compound growth rate during the 2008 recession. The winners didn’t just tighten belts, they played smart. They shifted spend to the channels that delivered the highest ROI, rather than going dark.
Take Samsung. While others slashed budgets, they doubled down on their brand. They used the downturn to reposition themselves as an innovation leader. It worked. Before the crash, Samsung was No. 21 in global brand value. Now? They’re sitting at No. 6.
Your Competitors Will Fill the Gap
Think of marketing like real estate: if you vacate your spot, someone else will move in.
When you step back, your competitors step forward. They’re still running ads. They’re still engaging with customers. They’re still positioning themselves as the go-to brand in your industry. And once customers switch loyalties, they rarely come back.
In other words, cutting marketing doesn’t just pause your growth – it actively helps your competitors grow instead. Companies that slash their marketing budgets hand over market share on a silver platter, making it a huge challenge for the original company to claw back.
The Marketing Doesn’t Stop, Even if You Do
It’s easy to think that if your business is slowing down, the whole market must be slowing down too. But that’s rarely the case.
People are still buying. They’re still searching. They’re still making decisions, but they shift focus to value, practicality, and little luxuries that make life feel a bit better. The question is: are you still in front of them when they are? By cutting marketing, you’re not stopping the market – you’re just removing yourself from the conversation.
Enter: The Lipstick Index (Yep, it's a thing)
Coined during the 2001 recession, it describes how people still splurge on small treats, like a new lipstick, even when they’re cutting back elsewhere. Fast-forward to now? The same trend is playing out, just with different products. Think health, wellness, and those “treat yourself” moments that don’t break the bank. If you’re in those spaces and not marketing right now, you’re missing the moment.
Take Procter & Gamble. In both 2009 and 2020, while competitors were pulling back, they ramped things up. Instead of disappearing, they got louder, sharper, and more relevant. That extra share of voice? It turned into extra market share. Especially in the US, where their targeted, relatable messaging hit the mark.
The takeaway? Economic uncertainty isn’t a reason to go quiet. It’s your chance to step up, show value, and take the space others are leaving behind.
The Smart Play? Optimise, Don’t Eliminate
We're not saying you should throw money at marketing without thinking. Every business needs to be strategic about spending. But slashing marketing entirely? That’s self-sabotage.
Remember, don’t throw the baby out with the bath water. The smarter move is optimisation: double down on high-performing channels, cut the fluff but keep the core, focus on marketing that delivers direct ROI, and adapt messaging to match customer needs in tough times. Lean, strategic marketing will always outperform a stop-start approach.
So, what’s the right move?
Spinks Creative is working with SMEs across the UK (and internationally) to help them recession-proof their marketing strategies without burning cash. We’ll help you figure out where to invest for the best return, so your business keeps growing, no matter the climate.
