High gas prices. High grocery prices. Property tax increases. Market uncertainty. Global unease. When the economy starts looking shaky, the first thing most small business owners do is instinctively look for the “eject” button on their marketing budget and close up that cash register. It feels like the safe move…cut the “extra” stuff to save cash. But here is the thing: treating marketing like an optional luxury is actually one of the biggest and most common mistakes people make in a downturn.
Think of it this way: when your competitors go quiet to save a few pennies, the “noise” in your competitive space quiets. Suddenly, it’s a lot easier (and many times, less expensive) to get loud and get noticed. By staying visible while everyone else hides and cowers, you don’t just survive. You leapfrog the other guys who are too cautious and are playing it safe. And for once, they get to stare at YOUR backside in the race to win!
The Power of Being the Only One Talking
When things get tough, customers get anxious. They start looking for brands that feel stable and reliable. If you’re the only one still talking to them, you enter their comfort zone and become their “safe harbor” by default.
Take the classic battle between Post and Kellogg’s during the Great Depression:
- The Move: Post was the king of cereal but slashed their ad budget to save money. Kellogg’s did the opposite. They doubled their spending and pushed a new cereal called Rice Krispies.
- The Result: By 1933, Snap, Crackle and Pop, Kellogg’s profits jumped by 30%, and they took over the top spot in the industry for decades.
Changing the Story
Marketing in difficult economic times isn’t about pretending everything is fine; it’s about solving the new problems your customers are facing.
Look at Miller’s Hardware in Florida during the 2008 housing crash:
- While the giant retailers were still trying to sell expensive renovations, Miller’s pivoted to “Repair and Restore”.
- They taught people how to fix what they already had.
- Because they became a partner in their customers’ frugality, their foot traffic actually went up by 15% while the big-box stores saw double-digit drops.
Unfortunately, after 80 years as a family business, the family decided to close its Florida store in April, but it wasn’t due to bankruptcy.
Advertising is “On Sale”
When the big corporations pull their massive global campaigns, ad prices (like Cost-Per-Click) often plummet. It becomes a buyer’s market for attention, making your ad dollar go further. That means you can buy more frequency for less
In 2020, the brand Nomad Goods saw this opening during the pandemic lockdowns. While other tech accessory brands froze, Nomad realized digital ads were “on sale”. They marketed heavily to the new work-from-home crowd and hit record-breaking numbers with a pivot to personal protective equipment while their competitors were just trying to keep the lights on.
The Big Payoff
The real magic happens when the economy eventually bounces back. (When has it not?) A famous study of 600 companies during the early ’80s recession found that those who kept marketing had sales 256% higher than those who cut their budgets once the recovery hit. If you’re not number one, the view never changes, right?
As some famous automaker named Henry Ford once said, “Stopping advertising to save money is like stopping your watch to save time”. Don’t see a downturn as a threat. See it as the best chance you’ll ever have to grab the spotlight while costs are more affordable than ever.
Ready to Outrun Your Competition? Meet the CMOco Growth Engine
If you’re ready to start capturing market share in this stressed economy, you don’t have to do it alone. At CMOco, we specialize in helping businesses navigate these windows of opportunity.
Our Growth Engine is designed to get you in front of consumers quickly and with minimal investment levels so you can focus on delivering for your customers. We provide a high-performance team that handles your marketing strategy, creative design and development, execution, management and analysis.
What CMOco Offers Your Business:
- Fractional CMO Leadership: Get C-suite level marketing strategy, expertise, and experience without the executive-level salary.
- Multi-Channel Execution: From digital advertising to social media, we can manage every moving part.
- Data-Driven Results: We focus on the metrics that actually matter, like leads, conversions, and ROI.
Whether you need an aggressive lead-generation campaign, a big sales push, or a total brand overhaul and relaunch, CMOco has the know-how to fuel your expansion.
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