Why it's not advisable to cut the marketing budget during times of crisis?
During times of economic uncertainty, it's common for companies to seek to reduce expenses, and one of the most common reactions is to stop investing in advertising and branding. However, this may not be the best decision.
According to research by Analytic Partners, brands that cut their marketing budgets during a recession end up at a long-term disadvantage.
Why? The key is what happens when a brand stops investing and its competitors do not, widening the gap between them.
The study was conducted on companies that faced the 2008 recession and reached the following conclusions:
⬆️ 54% of companies that did not cut (and even increased) their marketing investment saw an improvement in ROI.
✅ Brands that increased their marketing budget saw a 17% increase in sales, while those that did not saw an 18% decline.