We are in a challenging economy and macro-economic factors are affecting most individuals and companies across the board.  The uncertain environment can lead to a conservative approach to marketing efforts with your business or brand but as  research has consistently proven, reducing your marketing budget during an economic downturn can be a costly mistake for your current company revenue and future revenue.  In fact, this is the best time to invest in your marketing efforts  and it can lead to a competitive advantage.

The trick is to view challenging times as an opportunity instead of crutch – a time to cut back or hold the line on spending. Companies with this understanding have flourished in uncertainty. Global e-commerce marketplace, Etsy, is a more recent example. In 2020, as businesses were cutting ad budgets worldwide due to the pandemic, Etsy more than doubled its marketing spend. It paid off when the company grew full-year revenue 111% over its 2019 results.

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The same pattern is evident in more distant eras. An article in Forbes highlighted how the Kellogg’s brand won the dry cereal category leader title from rival Post during the Great Depression by doubling down on ad spending. That’s also how Toyota became the top auto importer during the mid-1970s recession, Amazon grew 28% in the Great Recession, and Taco Bell and Pizza Hut ate McDonald’s lunch when the Golden Arches cut ad spend during the 1990-1991 recession.

The key to success is to adjust your strategy to fit the times, monitor results to ensure your tactics are working (so you can change them if they fall short), and focus on building long-term relationships with customers to maximize lifetime value. I’ve gathered some tips to keep in mind:

1. Make marketing accountable to justify higher levels of spend:

Legendary merchant and marketing pioneer John Wanamaker said, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” That may have been true in his time, but now we have massive amounts of reliable data to achieve accountability and technology to drive nimbler campaigns. Performance marketing will show you what’s driving revenue and what’s not so you can adjust levers and refine tactics.

2. Become obsessed with testing:

The same data and technology that enable performance marketing also allow us to test messaging and creative in near-real time, driving greater efficiency. More proficiency is essential for marketing teams doing more with less. Create powerful ads that appeal to consumers on different levels, balancing emotional and rational appeals. Then, test those ads to ensure they’re hitting the mark, and if not, change them so you can drive better ROI. Remember you’re not locked into a single campaign strategy — you can and should be flexible.

3. People still want to buy, so give them a reason to purchase your products:

We’ve all heard the expression “retail therapy.” It’s a cliché because it’s true — buying goods and services can make us feel better, and during periods of uncertainty and stress, people crave comfort. Your job is to connect the dots for consumers with a message that justifies the purchase. The content will depend on the nature of your product, but it’s possible to frame almost anything as felicitous for the consumer or an opportunity to save money and time via purchase.

4. Explore social media platforms:

One mistake some marketers make is going all-in on one or two platforms and ignoring the rest. When competitors are spending less on ads, your negotiation power on all platforms increases, so a downturn is a great time to explore ads on platforms beyond the usual suspects. Depending on what you’re selling, you might find a great fit with a social media campaign on TikTok or reach a niche audience on Reddit or Twitch.

5. Take advantage of streaming TV’s rapid growth:

The audience for streaming TV doubled during the pandemic, and TV is an unparalleled brand builder. If your brand isn’t on streaming TV yet, now is an excellent time to look at a platform that combines the immediacy of television with the rich data capabilities of digital marketing. Consumers are more likely to be home and watching TV during the winter months, so the timing couldn’t be better.

Success in marketing during economically uncertain times is all about your strategy. Consumer spending declines in a downturn but there are still billions up for grabs, and brands that are adaptive in ways that allow them to reach their targets efficiently can compete and win. When competitors go dark or decrease spending, smart brands have a massive opportunity to win market share.

It’s a wonderful time to be an innovator because there’s less noise to cut through. I recommend taking a responsible approach to justify spend, exploring new avenues to reach potential customers, and framing your messaging to appeal to consumers also experiencing uncertainty to set yourself apart, build loyalty, and position your brand for maximum customer lifetime value. That’s an opportunity you can’t afford to pass up — this truly is the best time to invest in marketing.

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