The year 2025 is emerging as a time of uncertainty. Between tariffs, inflation, and cautious consumers, companies are starting to feel pressure to pull back on spending — especially on perceived non-essentials like marketing. But history shows this isn’t the right approach.
Studies consistently highlight that companies investing in marketing during recessions outperform rivals. In a highly competitive business environment, that may be just what your business needs to outperform.
Today’s Economy Demands Smarter, Not Smaller Marketing
Businesses today face a variety of converging pressures, from rising supply chain costs due to tariffs to slower buying cycles stemming from consumer uncertainty. It’s natural to respond to these challenges by cutting marketing spend, but companies should also consider the risks of doing so before acting.
For example, if your brand goes silent during a recession, it may lose the brand identity it’s carefully curated over the years. Competitors could step in to fill the vacuum and leave you in a worse position when consumer strength returns.
As Rachael Barrios Fricke, VP of Marketing at Premier Health, puts it: “The quickest way to start an organization’s decline? Cut marketing first.” Marketing is the engine that drives connection, loyalty, visibility, and growth. When you slash it, you lose momentum, relevance, and future revenue. Our CEO, Dave Mink, agreed, saying that “Marketing is the fastest path to cash.
So instead of eliminating your budget altogether, you may just need to change your approach. Getting smarter, not smaller, is the key to marketing successfully during economic pullbacks.
Mistakes Companies Make in a Downturn
So, what does “getting smarter” look like in practice? One approach is to focus on minimizing mistakes when marketing during a recession. Avoiding these common blunders can help your company marketing thrive during a downturn:
- Slashing budgets non-strategically: It’s okay to spend less on marketing during recessions, but doing so haphazardly is never the right approach. Make sure you think through reductions instead of mandating blanket reductions in spending across the board.
- Pausing brand-building efforts: You don’t want to be playing catch-up to competitors after periods of economic uncertainty.
- Failing to pivot messaging: Try to acknowledge consumer fears and mindset shifts in your marketing material. Acting like everything is normal can turn customers away from your brand.
- Becoming reactive: You have to react to ongoing changes in the economy. But don’t allow them to dictate your full strategy. Instead, understand the changes and consider how your company should respond to them on a case-by-case basis.
How Marketing Solves for Economic Uncertainty
Brands that market during a recession grow faster during the following recovery period. That’s why smart companies are investing in:
- Retargeting and lead nurturing to keep prospects warm
- Educational content and community engagement to build brand trust
- Diverse acquisition channels to account for new consumer preferences
- Refined messaging to better suit the times
- Progress measurement through lifetime value metrics instead of pure acquisition volume
Following similar tactics could help your business thrive at a time when competitors are struggling. This makes marketing more than a “nice-to-have.” It’s your engine for:
- Maintaining brand visibility while competitors retreat
- Building trust that will pay dividends in the years to come
- Creating demand when organic demand declines
- Pivoting messaging to maintain consumer alignment
Stay Seen, Stay Smart, Stay Strong
This may be a time of economic uncertainty, but the data is clear about how businesses should respond. History teaches us that continuing to invest in marketing during a recession is the best way to achieve success afterward. Pulling back might feel safer, but staying active will make your brand future-proof.
Finding the right strategy for your business will be challenging, but Avalaunch Media can help. We offer fractional CMO (FCMO) services combined with specialized teams, so you’ll have support for everything from high-level strategy to daily execution and progress tracking. Set up a free consultation to learn more.
