Marketing Through Tough Times - Why Cutting Back May Cost You More and How to Make the Most of Every Marketing Penny
Teah Richardson | April 2025
UK ECONOMY • B2B MARKETING • GROWTH
Unless you've been living under a rock or actively trying to avoid all news (we get it, sometimes it's tempting😅), you’ve probably noticed the UK economy has taken quite a hit in recent years.
In fact, Britain saw its highest number of company closures in two decades, with a staggering 198,046 businesses wiped off the official register in the last quarter of 2024 alone, according to research firm Beauhurst.
With the economy in flux, many are left wondering how to stay competitive and stand out in a market that, despite difficulties, still feels more crowded than ever. The question keeping many business owners up at night… How do we keep going and come out stronger?
In response to tough times, many SMEs and consultants go on the defensive by tightening their purse strings - marketing and advertising are all too often the first expenses to get the chop.
It’s a logical reflex that when faced with uncertainty, businesses instinctively pull back on what they believe is non-essential spending, and advertising or marketing campaigns often fall under this category.
But is cutting marketing truly the best move?
The opportunity in economic downturns
The data tells a different story.
In fact, economic downturns can actually create some pretty lucrative opportunities for businesses that keep investing in marketing.
While it’s tempting to hit the brakes, history shows that sticking with marketing during tough times can pay off big.
Take the 2008 recession, for example. Businesses that kept their marketing efforts going saw a 3.5 times bigger boost in brand visibility than those that slashed their budgets, according to Startups Magazine. And it doesn’t stop there… Research from the Advertising Association found that brands that kept up their advertising spend during the 2008 slump bounced back a whopping nine times faster than their competitors in the years that followed. Now that's a comeback!
Why it’s a good idea to push marketing
During economic uncertainty, the market noise tends to quiet down as many companies reduce their spending. This provides an excellent chance to give your presence a big boost. If you continue to market, you not only keep your brand visible, but you also build consumer trust by showing stability.
Additionally, businesses have the opportunity to capitalise on lower advertising costs. For example, during the COVID-19 recession, ad spend decreased by 7.5% during 2020. Reduced advertising costs can allow you to gain more exposure for less money, essentially creating a "buyer’s market." By positioning your brand as a stable and valuable option, you can attract new customers, build loyalty with existing ones, and stay top-of-mind when the economy improves.
Consider Kellogg’s during the Great Depression: while its competitor, Post, pulled back on advertising, Kellogg’s increased its marketing spend and introduced a new product, Rice Krispies. The result? Kellogg’s emerged as a market leader, showing that the right marketing strategy during a downturn can deliver value in the long term.
Marketing strategies for a downturn
Even if research tells us that marketing is essential during tough times, the real question is… how do you market when uncertainty is high and budgets are tight? In our experience, it all comes down to repositioning and approaching every marketing activity with intention.
Here are a few strategies to consider:
You can start by refining your messaging so it speaks directly to more cost-conscious customers and clearly positions your offering as a solution to their immediate needs.
You can double down on digital marketing - think targeted ads, SEO, and social media - to stay visible without blowing the budget.
You can prioritise retention by rewarding loyal customers, and don’t be afraid to adapt your services or business model to meet changing demands.
Finally, while others pull back, keep your brand front and centre by maintaining a consistent presence across channels - visibility now can mean long-term loyalty later.
Economic downturns actually present the perfect chance to grab market share, build lasting loyalty, and set your brand up for success when things start looking up. By staying smart, thoughtful, and consistent, businesses can come out of tough times even stronger than before.
So, the real question isn’t whether you can afford to market during a downturn, but whether you can afford not to!
If you need any support with your marketing activities, head to our website to find out more OR book a call with us.