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Should you stop marketing during a recession? Here are our recommendations for business owners facing the challenges of a changing economy.

Fluctuations in the economy bring a wide range of questions from business owners and managers. What budgets need to be looked at more closely? Will you need to scale back your business for a while? In this blog, we’re discussing marketing during a recession and offering some advice that may help you make some important decisions. 

What is a Recession?

Recession. That’s a big, scary word for many people, and the fact is that a contracting economy like this does have an impact. We’ve already seen layoffs in the news, with rumors of more to come. Everyone’s looking for a way to recession-proof their business or their career. 

A recession, by definition, is “a significant, widespread, and prolonged downturn in economic activity. A common rule of thumb is that two consecutive quarters of negative gross domestic product (GDP) growth mean recession, although more complex formulas are also used.”

As a marketing agency, we know that one of the top questions our clients and other business owners have for us is, ‘should you stop marketing during a recession?’ so we wanted to share our response. And before you start to think that, of course, the marketing agency is going to tell me to keep up my marketing… well, you’re not entirely wrong, but there’s more to it than that. 

Should You Stop Marketing During A Recession?

As inflation rises, consumers are forced to closely examine their budgets, investors grow wary, and everyone holds their money a little closer. If your business has felt the impact of rising prices and a drop in demand, and you’re searching for new ways to cut costs, the first things in your crosshairs may be those line items that don’t look too essential.

I would encourage you to use caution before chipping away at your marketing budget, and I would strongly discourage you from eliminating it altogether. The fact is that marketing is business growth and that growth and determination to push on is what is going to pull your business through any economic downturn. 

It’s easy to feel like a recession could never end, but if we look back at the history of the U.S. economy, data from the National Bureau of Economic Research shows that the average U.S. recession lasted just 17 months between 1854 and 2020. While 17 months can be a long time in the business world, for brands and companies that last the test of time, this is just another mountain to climb, and another challenge to navigate through.

SEO During A Recession

If you currently use SEO, or search engine optimization, as a part of your digital marketing strategy, then you know it’s a long game. It’s definitely not something you will want to eliminate from your overall marketing strategy, because if your competitors are maintaining theirs, they will begin to outrank you for search result positions your company once held. 

Social Media Marketing During A Recession

A social media presence creates brand trust and builds relationships with your current and potential clients and customers. It can be tempting to eliminate social media marketing during times of economic fluctuation, but you’re losing out on a key avenue that your target market wants to use to communicate with you. Brand loyalty from your clients and customers can often draw them to choose your business over the competition.

Paid Social Ads During A Recession

Social media ads work. On average, 28% of people found new products or services after viewing social media ads, and over 49% of people stated that they are likely to purchase from brands they see advertised on social media. Eliminating paid advertising like this from your budget is eliminating an entire source of revenue for your business. 

Search Ads During A Recession

More than 80% of businesses rely on Google’s paid search ads to bring in new clients and customers. You might be seeing a trend here, but as with any avenue of marketing, cutting your traffic channels is only going to do one thing – decrease traffic, decrease conversions, and decrease gross revenue. 

Marketing Through A Recession – What’s Your Plan?

Cutting out something like marketing because of economic changes can often do more harm than good. Your competitors are facing the same economy you are, but are they cutting their marketing budgets, or will they be scooping up a larger market share that your business could hold? 

If you have to look at budget reductions, here’s my takeaway: be smart about your marketing. Make sure you have a marketing partner who knows what they’re doing, who’s highly targeted with your marketing strategy, and who isn’t wasting your time and budget on something that’s not working. 

Working with a marketing agency can often be a smart financial move for a business. It gives you access to a full range of marketing services at a lower cost than hiring in-house. We’re always evaluating our clients’ marketing strategies to make sure they’re serving our clients, and we’re here to help you achieve the results you’re looking for. When you’re ready to chat further, schedule a call with us. We’re looking forward to working with you!