Marketers Who Cut Spend Risk Losing 15% of Their Revenue During a Recession

Good to see some numbers behind what I've known to be true for years: invest in your brand when the market is down. Brands that reduced ad spend during the last recession “risked losing 15% of their business to competitors who boosted theirs.”

Key takeaways from the research:

• Recessions create opportunities: While many companies instinctively cut marketing during an economic downturn, this period can be a chance for aggressive players to gain market share.

• A "double whammy" for cautious brands: Companies that slash their marketing budgets not only lose out on potential growth but also become more vulnerable to competitors who decide to invest.

• Maintaining visibility is critical: By boosting their media spend, especially during a time when competitors are pulling back, companies can capture "share of voice" and secure a greater return on their investment.

• The inverse is true: The research acts as a cautionary tale for companies that become too conservative. By withdrawing from the marketplace, they risk fading from consumer memory and enabling competitors to steal their customers.

Full article here: https://analyticpartners.com/knowledge-hub/newsroom/report-cutting-spend-in-recession-risks-loss/