Will we see a recession in 2023? That remains to be seen, though the buzz around this topic has been relentless.

Regardless of what happens in the coming months, it’s never a bad idea to think ahead. If we don’t see a recession now, there will be one at some point in the future. That’s life in a cyclical world!

So what does recession planning look like for your business?

For many, it means cutting back on the nice-to-haves. And while leadership often deems marketing and advertising as one such discretionary expense, I want to challenge that well-worn notion.

Here’s why recessions are not the time to pump the brakes on marketing and what your recessionary marketing plan should look like.

Studies show curbing marketing spend is disadvantageous

The impulse to scale back on marketing spend during a recession is understandable (we even fell prey to the temptation at the start of COVID). People are tightening their belts across the board; your company’s goods or services may be one they nix. So why continue to ask them for their business?

Turns out, researchers have asked this very same question, and their studies have garnered some interesting results.

One study that evaluated 40 other papers exploring marketing during a recession found that there were both short and long-term benefits to maintaining budgets throughout economic downturns. According to its analysis, “There is strong and consistent evidence that cutting back on advertising during a recession can hurt sales during and after the recession, without generating any substantial increase in profits.”

Even more compelling? The businesses that increased advertising during a recession saw a boost in sales, greater market share, and higher earnings.

And the impacts of an organization’s recessionary marketing strategy had lasting effects. Businesses that cut back stalled out, while those that invested in marketing continued to outpace their competition for several years past the recession’s end.

Why staying the course works

It makes sense that the businesses that continue to invest in marketing will see gains while they do. But what explains the benefits that extend into the years following a recession?

It likely has something to do with share of attention. As any marketer knows, there’s tremendous value in remaining top-of-mind with customers.

Brands that continue to invest in marketing during a recession stay in customers’ sightlines. Not only that but brands that cut spending seem to disappear. Suddenly, there’s less competition for eyeballs.

Once the recession ends and the brands that scaled back flood onto the scene again, they’re in fierce competition with each other. While they’re fighting it out, the brand that remained invested all along avoids the melee and continues to build on the goodwill they’ve accumulated over the previous period.

Brands that continue to invest in marketing during a recession stay in customers’ sightlines. Not only that but brands that cut spending seem to disappear. Suddenly, there’s less competition for eyeballs.

What to say during a recession

While the data shows your investment in marketing spend shouldn’t shift downward, what you’re doing with that money should change.

Bad economic times call for more empathetic messaging. Recessions are tough for everyone; no matter who your customer is, they’re probably feeling some pain. Don’t hit them with glib or aggressive sales-focused messaging. Instead, lead with heart.

It’s an old marketing truism that people want to do business with brands they know, like, and trust. High EQ messaging ensures your brand remains likable and trustworthy during down periods.

Recessions are also a time to lean into brand messaging. First, building brand is a timeless exercise and one that should never stop – regardless of the S&P’s standing. Second, when your messaging focuses on brand, it’s less about the immediate sale and more about articulating your mission, vision, or values.

When you use those brand pillars to highlight your understanding of your customer’s pain points and needs, that’s great marketing for any economic climate, but it’s especially effective when your audience is craving empathetic messaging.

While none of us can control the market’s ebbs and flows, we can manage our responses to them. Thinking about your recession marketing plan before a slump hits is the best way to avoid an impulsive, fearful reaction. Aim for a sustained marketing effort in any environment, and you can operate from a position of strength even in challenging times.

Need help creating an impervious marketing strategy? Let’s talk.