Recession-Proof Your Business: Why Cutting Marketing Now Is the Dumbest Move You Could Make

This article was updated on April 8, 2025.

It's déjà vu all over again.

Here we are, staring down the barrel of another recession barreling toward us like a dumpster fire on a freight train.

And just like clockwork, businesses everywhere are getting that familiar panic twitch. That knee-jerk reaction to slash budgets, and guess what's always first on the chopping block?

Marketing. Because apparently when times get tough, the first thing you should do is make sure nobody remembers you exist!

When your livelihood is at stake against forces you can't control, it's natural to start making cuts.

But before you take those metaphorical scissors to your marketing budget, let me drop some hard truth bombs about why that's the WORST move you could make right now.

So in this post, I’m going to break down reasons why you should maintain or double down on marketing your small business during the tough months ahead.

Marketing is a critical asset, not a business expense

Let's get this straight once and for all: marketing isn't some frivolous expense like the fancy coffee machine in your break room. It's a critical asset that drives revenue into your business. Period.

When the economic clouds gather, most businesses make the catastrophic mistake of viewing marketing as just another line item to slash. But here's where the smartest companies separate themselves from the pack – they understand that marketing is their lifeline to staying relevant when everyone else is fading into obscurity.

Look at the data (because who doesn't love a good graph to back up an argument?). According to that handy chart from Data2Decisions I've included, businesses that maintain their marketing budget recover in about 1 year. Those that slash it completely? They're looking at a 5-YEAR recovery timeline. Five. Whole. Years. Let that sink in.

Amazon is a prime (no pun intended) example of keeping product innovation and R&D during a recession and reaping the benefits. In 2009, right smack in the middle of the Global Financial Crisis, the e-commerce giant decided to launch its ebook reader Kindle instead of waiting for better times or scrapping the product altogether. In that year alone, Amazon’s revenue grew by 28% because of the launch, and for the first time ever in the company’s history, ebooks sold more than physical books.

And this would not have been possible without marketing, as marketing includes everything that brings money into a business.

The digital ad playground is about to get a lot less crowded

Here's the juicy part that doesn't get talked about enough.

When big marketing budgets get slashed, guess what else gets cut? Ad spend.

Suddenly those overcrowded digital waters where you've been fighting for attention start clearing out. The big fish retreat, leaving more room for us smaller fish to not just swim, but actually GROW.

The digital ad market becomes less competitive, costs drop, and YOU can finally get noticed without breaking the bank. It's like finding yourself at a networking event where half the people suddenly decided to go home early. More appetizers for you, baby!

With fewer businesses bidding on the same keywords and audience segments, your ad dollars stretch further than ever. During the 2008 recession, some businesses reported getting up to 30% more digital advertising value for the exact same spend. Who doesn't love a good sale?

Market share and share of voice will be ripe for the taking

You obviously have some competition, and each business will do what they think is best for them in the long or short term.

That means that some will still decide to cut their marketing budget.

And for you, that’s an advantage.

Going dark in brand awareness marketing, or even being seen less in any space allows people to simply forget about you, or worse, think that something is wrong with your business and you’re not doing so well. 

And when your competitors do cut their budgets, there’s the opportunity for you to increase your voice in the market. Nigel Hollis from Millward Brown, one of the premier consumer research institutions explains “companies that increase their marketing investment when most others are cutting back have an opportunity to substantially improve the standing of their brands.” 

The table below from Bluetrain shows this in action. A Recession also makes your customer pool smaller, as people become more budget-conscious. But as your competitors decrease budgets and your pool decreases too, your market share will increase as long as you maintain your marketing efforts.

History doesn't just suggest this works – it SCREAMS it through a megaphone.

Kellogg’s did this to Post Cereals during The Great Depression, and to this day it still dominates the cereal market. Post originally dominated the relatively new dry cereal market in the late 1920s, and as soon as The Great Depression hit, retracted most of its advertising and marketing spend. Kellogs’s, who at the time was still a fledgling company, did the exact opposite and doubled their spend. By 1933 Kellogg’s was the new king of cereal. Post has never been able to recover.

Same goes with fast food. During the recession in the early 90s, McDonald’s decreased their budgets, and Pizza Hut and Taco Bell took advantage. While Pizza Hit’s sales exploded by 61%, Taco Bell’s increased by 41% and McDonald’s dropped by 28%.

Looking at an even bigger picture, research going back nearly a century shows companies who maintain or increase they're advertising and marketing spend during economic hardships see an increase in sales growth by 20%, whereas companies who reduce or eliminate their spend decrease by 7%. 

So which side would you rather be on?

How to rethink your marketing for the times ahead

So hopefully by now you’re convinced not to take metaphorical scissors to your marketing spend. Maybe I’ve even managed to convince you to increase your spend and efforts slightly. 

So what to do next? Here are some tips on what you can do to ride the tide.

Strategic Moves for Different Business Players

The coming recession isn't a one-size-fits-all challenge, and neither should your response be. Let's break down some tailored approaches depending on your position in the marketing ecosystem:

For Small Marketing Teams (2-4 Members)

When you're running lean on resources but big on responsibility, here's your game plan:

1. Get Surgical with That Budget

Don't make drastic cuts—make strategic reallocations. This is the time to be absolutely ruthless about what's working and what isn't. Cut the programs with questionable ROI and double down on your proven performers. If something's delivering a 2x return, why wouldn't you pour more into it when competitors are pulling back?

2. Embrace Your Inner Data Nerd

Now is NOT the time for gut feelings and "we've always done it this way" thinking. Track everything, measure twice, and spend once. Set up proper attribution models so you know exactly which channels are driving results. When resources are tight, data becomes your most valuable currency.

3. Let Creativity Fill the Budget Gap

When budgets shrink, innovation should grow. Think guerrilla marketing, user-generated content, and partnerships that cost nothing but deliver everything. Some of the most memorable campaigns in history were born from tight budgets during tough times. Necessity really is the mother of invention in marketing.

4. Agility Becomes Your Superpower

The beauty of small teams? You can pivot faster than your larger competitors. Set up weekly check-ins to evaluate what's working and be ready to shift resources quickly. The businesses that thrive in recessions are the ones that adapt fastest to changing consumer behaviors.

For Business Owners and Decision Makers

As the person with ultimate budget authority, you're facing some tough calls. Here's how to make the right ones:

1. Think of Marketing as Real Estate

Would you sell your property when the market's down? Of course not. You'd buy more if you could! Apply the same logic to your marketing presence. While your competitors disappear from view, you have a once-in-a-decade opportunity to capture market share at a discount. It's like buying beachfront property during a hurricane warning—terrifying in the moment, brilliant in hindsight.

2. Focus on Digital for Maximum Flexibility

Digital marketing isn't just more measurable; it's more adaptable during uncertain times. You can adjust spend daily, test different messages weekly, and pivot your entire strategy monthly if needed. Try doing that with a billboard or TV campaign! Lean into channels where you can trace the direct line from dollar spent to dollar earned.

3. Don't Ghost Your Customers

The businesses that maintained customer relationships during past recessions recovered the fastest afterward. People remember who showed up during tough times and who disappeared. Double down on community building, excellent service, and content that acknowledges the reality your customers are facing. Empathy isn't just good karma—it's good business.

4. Invest in Retention, Not Just Acquisition

It costs 5-7 times more to acquire a new customer than to keep an existing one—and that gap widens during recessions. Shift more of your marketing focus toward keeping your current customers happy, engaged, and buying. Loyalty programs, exclusive offers, and exceptional service will pay dividends long after the economy recovers.

Making the Most of Your Marketing Investment

Regardless of which category you fall into, there are universal principles that can help any business navigate the recession's choppy waters:

1. Monitor Competition Like a Hawk

Keep an eagle eye on what your competitors are doing—or more importantly, what they're not doing. Are they pulling out of certain channels? Reducing frequency? Changing their messaging? Each retreat they make is a potential advance for you.

2. Focus on ROI, Not Vanity Metrics

Now is the time to get ruthlessly focused on metrics that tie directly to revenue. Likes and shares are nice, but cash flow is king in a recession. Restructure your reporting to prioritize bottom-line impact over vanity metrics.

3. Test Before You Invest

The smart approach isn't blind faith in marketing—it's calculated risk. Test new initiatives with 10-20% of your potential budget, measure the results, then scale what works and kill what doesn't. This mitigates risk while still allowing for potential breakthroughs.

4. Tell Better Stories

When budgets are tight, the quality of your storytelling becomes even more important. You simply can't afford to waste impressions on forgettable content. Invest in developing compelling narratives that resonate emotionally with your audience. Logic makes people think, but emotion makes them act.

5. Prepare for the Recovery

The recession will end. When it does, the businesses that maintained their presence will be positioned to accelerate while others are still trying to rebuild awareness. Set aside a portion of your planning for the post-recession world—it'll arrive sooner than you think.

The bottom line: This is your moment

We have tough times ahead, no doubt. But remember, a recession isn't forever – it's temporary. Your brand reputation isn't temporary at all. The decisions you make now will echo long after the economy recovers.

When the history books of your industry are written, which company do you want to be? The one that panicked and disappeared, or the one that saw opportunity where others saw only obstacles?

Choose wisely. Your future market share depends on it.