In 2020, as a growing marketing firm, we were prepared to guide our clients through uncertain economic times with one consistent message: lean into your marketing and advertising, don’t pull back. Now, five years later, the same advice is still relevant. Even if we’re not entering a formal recession, persistent economic headwinds and uncertainty are still reshaping decision-making for businesses of all sizes.

It’s tempting—almost instinctive—for leaders to reduce or eliminate marketing and advertising when budgets tighten. These line items often feel more flexible than payroll or rent. But history and data tell a different story: brands that maintain or increase their marketing efforts during downturns emerge stronger and grow faster once recovery begins.

The Data is Clear: Marketing During Downturns Pays Off

Nearly 25 years ago, a study by the Malik PIMS organization found that companies that increased spending on marketing and R&D during downturns significantly outperformed competitors who did not. More recently, Kantar estimated that brands that “go dark” to save money during a recession lose an average of 39% in brand awareness—a decline that delays recovery and makes it harder to regain momentum later (Forbes, 2019).

In the 2008 recession, Kantar Millward Brown reported that 60% of brands that stopped advertising for six months experienced a 24% drop in brand use and a 28% decline in brand image. Brands that cut more deeply than competitors were more likely to lose market share (Avalaunch Media).

Historical Proof: Bold Moves Lead to Market Leadership

Smart companies have used recessions as springboards to growth:

• Kellogg’s, during the Great Depression, increased its ad spend and invested in R&D. The result? The launch of Rice Krispies and long-term dominance in the cereal market.

• During the 1973 recession, Toyota increased advertising while American automakers cut back. By 1976, Toyota had become the top imported car brand in the U.S. (LinkedIn, Kunal Gupta).

• In 1991, McDonald’s scaled back advertising and saw a 28% drop in sales, while Pizza Hut and Taco Bell, who maintained their presence, grew sales by 61% and 40%, respectively.

• Amazon launched the Kindle during the Great Recession in 2009 and grew nearly 30% that year, a strategy echoing the company’s resilience after the dot-com bubble burst.

Even at the local level, we’ve seen it firsthand. 5Points Creative was founded during the Great Recession and doubled in size during the early months of the COVID-19 crisis. Part of our strategy included increasing our own advertising budget in 2020. The results were immediate and measurable.

Hold the Line—Or Better Yet, Push Forward

While budget scrutiny is warranted, cutting your advertising spend shouldn't be your default. Brands that stay visible and present during downturns build trust, gain market share, and stay top-of-mind while competitors fade. This isn’t just a theory—it’s a proven business strategy seen time and again across decades of economic uncertainty.

You might have to make tough decisions. But as you evaluate your 2025 and 2026 plans, be sure your marketing and advertising budgets are given the strategic attention they deserve—not the ax.

Let’s talk about how to make the most of your budget—no matter the climate. We can help you stay visible, stay relevant, and stay growing.

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