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Why You shouldn't Cut Your Marketing Budget During An Economic Crisis

5 Reasons Why You Shouldn't Cut Your Marketing Budget During An Economic Crisis

Today’s business landscape has been badly affected by the global pandemic outbreak.

Companies that have survived from previous recessions regularly did not cut their marketing budget, but also in many cases these companies increased their budget. However, they were smart enough to make some changes on their subjects that they were spending their marketing budget on. Let’s begin by reviewing the last recession.

During the last economic crisis of 2007, online advertising sales have risen by more than 27% over two years. It is not just the overall profit margin that’s inflating, either. Digital marketing is changing dramatically in times of recession. 

Although every kind of recession might evolve to become a serious threat for thousands of people, the digital industry can still benefit from a growing demand businesses place on the current low-price internet marketing services. By providing businesses with the most robust offering of marketing tools, digital agencies across the globe help various industries stay afloat during these tough economic times. 

Brand advertisements’ success during the time of pandemic or every other kind of recession will happen when they answer the consumer’s question: “How can we help?”

Not only will online marketing survive, but it may also increase profitability during the lean times, continuing stealing your attention. Online advertising is far more profitable now, and there are some tips on key principles of good marketing and right after that five specific reasons why you should maintain your digital marketing during a recession.

your company’s current marketing situation?

Have you ever thought about how easy it is to get the marketing budget cut? That’s probably a popular issue in many companies. 

Here is a quick tip when it comes to the point in your company you should ask yourself these three questions and these don’t need a special time to be asked (no matter if it’s the pandemic or right before election) then you can decide whether it’s a good idea to get it cut or not.

How do you segment your marketing budget? 

 What is your key message to the consumers?

 What are you currently spending on?

 How much is your promotion budget?

 What is your business strategy?

Let’s get started with the last question it is the core side of your business too. 

Business Strategy 

When you know the exact roads your company will ride on and the way you want to satisfy your customers and it would be much easier to tell the customers the core message of your business.

The message is obvious but it should engage more people –especially the loyal customers- in the time of crisis. Let’s dig deep into it, imagine that you have worked as a brand for some years now and suddenly a pandemic comes in. So what should you do now?

If you have a good vision and a good strategy that opens the roads ahead of you, it is much easier to make decisions based on the budget and the situation of the company.

After all, put your feet in customers’ shoes they are dealing with you and you are giving the products they need with an extra value which makes them rebuy you. But these moments will lead to change. So what if your competitors try to copy your formula and spend from their promotion budgets to run a campaign. What happens then?

Let’s review another statement that is also probable to happen.

Imagine you are going to lunch your new product based on the scheduled time with your whole R&D team.

As the pandemic goes on people act differently, they want everything to be back. They welcome innovative products which answer their new needs.

So in this situation, the winner is the company who uses its R&D promotions. Even if a company hasn’t reached the quality standard of a product, they continue their R&D during the recession.

Note on the timing of product lunch: Researches shows that the best time to launch a new product is right in the middle of the recession.

Don’t forget to review your business strategy during the recession because it might even open a new way for your company and you may have to pivot. Don’t be afraid to change if it was necessary

Advertising Costs

As the advertising cost drop in the recession due to its side effects in all aspects of our lives. There are fewer competitors. as the fact companies’ promotions budget is reflecting the amount of competition. Remember this famous quote: In times of prosperity, you should advertise. In times of hardship, you must advertise.

Fewer competitors mean you can have more voice in the conversation with your customers and they are more likely to catch your core message. It’s a good idea to Work hard to meet many of these needs and try to answer them.

To maintain the momentum and engagement of your audience, a plan that is going on based on the content calendar by combining activities, such as newsletters, blog posts, emails, advertisements, and public relations.

In fact, customer satisfaction depends on one meet needs on time, every time, and all touchpoints.

You may spend a lot of money with no special KPI before the recession happens and have no clue how to change the budget and spend the right money in the right channel to generate the best results.

Well, it is always a good idea to inform people and make them aware of what is happening both in your industry and the whole things affecting your business.

Organic unique social media posts and helpful blog posts are essential items of this section which a creative agency can help you with to generate core values. We at dewzilla will service your company what you need and help you with every aspect of getting the customers memorable values.

 Track Your Marketing

Keep in mind that marketing drives long-term revenue in different channels such as sales. It’s an effective game-changer. 

In times of recession, customers are more likely to tighten their budgets and spend less. As the recession has side effects on unemployment rates rise. People also have concerns about their loans and rents. Besides all these facts some loyal customers are searching for your brands out there. So you must provide them the best service they are looking for and marketing is not about the sales process!

Focus on retention and target the specific ones and find new ways to engage with your customers. 

A keynote: all the actions you are taking are going to be the most memorable ones and in this way, you will get more market share. 

That’s why people will understand their hard times and who will survive them in that times. So be survival to revive.

As you see the marketing side it is also recommended to look at digital marketing sections in a digitalized world.


In particular, digital marketing services such as SEO and CRM require lower investment compared to any other traditional marketing channels, such as Newspaper or TV advertising. Any online marketing effort requires little time to implement and is more cost-effective than its traditional counterpart. 

As you know, our company specializes in developing effective marketing solutions; we help eCommerce websites convert leads into paying customers, and what is more important, build strong customer loyalty. Looking for a creative marketing agency to suit your business needs? Look no further! As your strategic partner, Dewzilla’s team of highly skilled business developers and marketers will work with you hand in hand to make your business dream a reality.

With the assistance of our promotions experts, you can identify components of your marketing, its internal weaknesses, and potential financial costs of direct damage before the recession strikes. 

So, instead of bailing, why don’t you use the opportunity to approach high net worth clients in the down economy. 


Before shutting down your business during the recession, you need to know how your customers are doing during these hard times. 

Indeed, the most common problem for businesses is to stay afloat amidst an unexpected crisis. And it is very pleasant that the approach to maintenance with effective marketing planning gets on a new level. To learn how your company can survive, and even overcome an economic downturn is essential, especially if your business aspires to thrive in marketing. This means you need to develop a working customer retention strategy that provides as much value as possible in order to keep your brand on the tip of their tongues. 

According to the latest customer retention stats, about 70% of businesses claim that it’s cheaper to retain customers than it is to find new ones. It is also recommended to look at digital marketing funnel blog posts to understand more on when is the best time for a customer to complete the retention. 

Additionally, there are other equally important factors that may play a role in creating a good feedback campaign during a recession: low advertising costs, and more chances to revolve both targeted and new clients. 

In fair weather, managing your marketing budget can become more clear and easier because of the real impact of new financial measures and communications strategy. Reevaluating your current market will help you understand the current situation of the web development service industry, and provide you with useful information on potential risks, or the likelihood of occurrence. 


Nowadays, customers’ buying behavior is governed by two major factors: digital marketing and online channels. Digital marketing helps you to measure ROI more effectively than the traditional type. In particular, a thoughtful online marketing strategy can help businesses to capitalize on market dynamics, try different types of appeals, evaluate which generates the most favorable response rates, and then adjust your marketing plan accordingly. 

What is more, you can create a marketing budget plan or calculate your current ad budget to manage your investments more effectively.

Note that most of your targeted clients will not be able to form an opinion about your brand the first time they see an ad or a promo. Hence, the most effective tool at your disposal in this respect is the approach called advertising repetition. The successful strategy implementation may lead to the consumer purchasing your brand he goes to buy a particular product. 

So, in times of crisis, it is better to keep your marketing, but smartly manage digital ad budgets! Remember, despite the global anxiety and grief, people still need to buy things, and ефкпуеув digital marketing spots are the best way to get your message across. 


All you can do is keep being present and encourage your audience to actively engage with sales. Practice shows that accurate advertising during an economic recession helps you keep your brand №1 in the minds of the customers.

Customers are more likely to stick to the brands they hear about most often.

By consistently engaging with your customers — by offering them your discounts, freebies, support communication, creating help resources, etc., — you’ll make sure they remember your product/brand when making a purchase decision. 

Even though the pandemic continues to cause industrial concerns, the latest data on businesses that profit off of the crisis, and are reportedly thriving in it— Groupon, Wells Fargo, Netflix, and Uber — explains why these and other forgotten companies came back to life as people are ordering more food delivery and streaming series online more than ever. 


Another reason to keep investing in your marketing against the background of global financial anxiety is the perceived power of your company’s ability to switch to crisis marketing management mode. An active online presence during a recession signals recognition of a company’s great potential. Simply put, make no doubt of your business being resilient enough to adapt quickly after the pandemic ends. 

Reducing your marketing budget can result in your competitors taking over your advantageous position.

Regardless of the global economic challenges, you should never bail on marketing your business. If consumers are not aware of your company, they can’t do business with you.

A tech-savvy marketing strategy provided by an esteemed digital agency can give you an opportunity to distinguish yourself from the competition by accentuating your product quality or understanding customer wants.

It is important to remember that instead of making deep spending cuts, think of what your company spends money on and what financial gain your business makes.


During an economic crisis, you should put all your focus on your gold customers. We have mentioned in a previous article the Pareto principle which states that 20% of your customers are responsible for 80% of your profits. These are the most valuable ones because they keep coming back for your products. To satisfy your gold customer’s whim, the number one priority in times like this is to best address their needs. 

Create more compelling business proposals. Naturally, you would not want to get stuck in old ineffective marketing strategies, nor fall into a rut again. To keep you from making this business mistake again, learn what you need to know about your clients’ needs, especially what they crave the most during a crisis. You can then use this information when developing marketing message strategies. 

Keep in touch with your clients. This does not necessarily concern Email marketing or using social media channels for self-promotion. Indeed, via Facebook and Twitter, the firm could disseminate notifications for input and recent developments and receive feedback, harnessing a two-way communication model. However, paramount amongst those is the realization of a good personal relationship with your clients. Show them you understand them, make them your friends. Making them see your business more than just friends will ensure good customer relationships and better performance in the future. 


We hope this information helps guide your business along the arduous journey, and overcome the challenges every kind of recession brings. Remember to never give up on enhancing your company’s chance of success, even during the darkest days of the industry’s downturn. Create an effective plan for both digital and offline marketing and stick to it no matter what comes in your way. Things may get tough but stay flexible and know to have a clear vision. 

It can be different case by case based on the company’s size and their industry. A very effective way is to look at your business strategy. It is also recommended not to cut your marketing budget but if it was necessary, cut it by strategy. Look at each segment’s ROI and make a great decision for the Continuation Of your business in the current industry.


Why you shouldn’t cut your marketing budget?

Understand how your customer’s behavior has changed and met their needs. Customers are being more discerning with their money but are still spending. They want to buy the right products from brands they trust. Your competitors also are trying their best to make themselves their only answer.

Why do companies cut marketing budgets?

They might cut their budget to get a quick answer on saving their money but it is one of the worst actions to take. The other important factor is that they aren’t using all of their marketing channels. Some companies even don’t use marketing in the right way.

How do you cut a marketing budget?

Measure, test, and learn. When budgets are tight knowing what works, quickly, makes it much easier to make decisions of where to invest. Make your KPIs as clear as possible to measure.

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