5 Reasons to Focus on Marketing During a Recession

In times of economic downturns, many businesses tend to cut back on their marketing budgets in order to save money. However, reducing your marketing efforts is often counterproductive. Marketing during a recession can provide many benefits to help your business thrive in difficult economic times. 

Here are the top 5 reasons why businesses should focus on marketing during a recession:

1. Increased Visibility and Market Share

During a recession, many businesses cut back on their marketing budgets, leading to decreased visibility and market share. 

Continuing to market your products or services can actually increase your visibility and help you gain a larger share of the market compared to many of your competitors who may be reducing their marketing efforts. 

By investing in marketing, you can stand out in a crowded market and attract new customers. The money you spend on continued marketing efforts will be outweighed by the financial benefits of getting more eyes on your business. 

For example, during the 2008 financial crisis, Apple continued to invest in marketing and product development, releasing the iPhone 3G and launching the App Store. Many of their competitors pulled back on their advertising at this time to try to save money. 

As a result, Apple's revenue and market share increased, and the company was able to establish itself as a leading smartphone manufacturer.

2. Opportunity to Build Brand Loyalty

During a recession, consumers tend to become more cautious with their spending and are more likely to stick with brands they know and trust. 

By continuing to market your brand during a recession, you can build and strengthen brand loyalty among your existing customers and attract new customers looking for reliable brands that they can trust.

During the 2008 financial crisis, McDonald's launched a campaign called the "See what we’re made of campaign" that gave customers a look behind the curtain into the restaurant’s relationship with suppliers and what goes on in the kitchens. 

The campaign helped McDonald's appear more transparent, reinforcing brand loyalty and attracting new customers looking for affordable food options during tough economic times.

3. Lower Marketing Costs

During a recession, many advertising channels become more affordable as competition decreases. This can provide an opportunity for businesses to test new marketing channels and strategies, without incurring significant costs.

For example, during the COVID-19 pandemic, many businesses cut their advertising spending. Advertising spending dropped 9% across Europe in the first quarter of 2020 and 15% in China due to budgetary concerns about a potential financial crisis. 

The decrease in advertising spending created a sort of buyers’ market for businesses still interested in purchasing ads. As a result, the cost of advertising decreased, allowing businesses to reach more target customers at a lower cost.

4. Greater Opportunity for Innovation

During a recession, businesses may need to be more creative in their marketing efforts to stand out from the competition and justify their advertising spending. 

This need for innovation can provide an opportunity for businesses to experiment with new marketing strategies and tactics, and to develop innovative campaigns that can help to differentiate their brand in the market. 

Marketing experimentation can lead to long-term benefits, as innovative marketing campaigns stand out and help businesses build brand awareness and gain loyal customers.

For example, during the 2008 financial crisis, Honda launched a campaign called "Everybody Knows Somebody Who Loves a Honda" that emphasized people's emotional connection with their cars. The campaign helped to differentiate Honda from its competitors and expand its customer base.

5. Preparation for the Future

Finally, businesses can continue investing in marketing during a recession to position themselves for growth when the economy recovers. Businesses that continue to market their products or services during a recession are more likely to maintain their market share and be better positioned for growth when the economy picks up again. 

You have to consider the possibility that your competitors will continue advertising during the recession. If they continue and your business does not, you risk losing out on your market share and not getting it back even after the recession ends. 

Conversely, advertising during these difficult periods will help you maintain your existing customers and grow your business once customers’ spending habits get back to normal. 

Cutting costs by slashing your marketing budget is short-term thinking. The more effective long-term marketing approach is advertising even during a recession. 

For example, during the 2008 financial crisis, Amazon continued to invest in marketing and product development, launching the Kindle e-reader and expanding its online marketplace. As a result, Amazon was able to maintain its market share and emerge from the recession as one of the world's leading e-commerce companies.

The Smart Approach to Marketing During a Recession

While it may be tempting for businesses to cut back on their marketing budgets during a recession, it is important to recognize the potential benefits that marketing can provide. 

By continuing to market your brand during a recession, you can increase your visibility, build brand loyalty, lower your marketing costs, innovate your marketing strategies, and prepare your business for future growth.

Get Help With Effective Recession Marketing Strategies

Coming up with the right marketing efforts to promote your products and services is always challenging, especially during economic downturns when money is tight. Instead of abandoning marketing or struggling to develop your strategy alone, why not turn to experts in digital marketing for help?

Optimize Digital Marketing has been helping automotive businesses with their marketing efforts for over a decade. We know how to successfully market your business during times of economic growth and downturn so you never have to worry about missing valuable opportunities. 



Contact Optimize today to get started on the automotive marketing plan that will help your business thrive.