Cutting Marketing Budgets During Economic Uncertainty – Why you shouldn’t do it..
By: Ed Thomas, Senior Regional Account Manager
In time of economic uncertainty (like now), companies tend to start slashing budgets where they think may be best to help ease the burden of loss of sales. We’ve noticed that advertising & marketing budgets are often seen as a discretionary cost and sometimes the first budgets to take a hit. Our recommendation – don’t do it! Companies that do this are giving up their market share and allowing the competition to take over. In turn, they are losing customers that are now buying from companies who kept their advertising and marketing flowing.
A study conducted by McGraw Hill found that companies that cut their advertising budgets saw 0% growth after the economic turmoil. Yup, zero. Now, on the contrary, the companies that maintained and even increased their advertising & marketing dollars saw a 256% increase in sales.
We all know that our country has been through many tough economic times dating back to the Great Depression to most recently, the Covid-19 pandemic but each time, our economy has bounced back and companies are often left struggling to regain sales. I feel confident in saying that this is due in part to cutting their advertising spend. So, times may be tough now but as history proves, it will bounce back and we don’t want you falling in that 0% growth group.
Maintaining your current advertising/marketing spend to keep hold of your share of voice
Taking advantage of aggressive discounted media that vendors are offer during these times
Ready to watch your sales grow? Let’s talk.