When economic uncertainty sets in, the knee-jerk reaction for many companies is to retreat. Afterall, cutting marketing budgets, freezing brand initiatives and waiting for calmer waters can feel like the “smart move.”
This strategy, while understandable, often is wrong. In reality, a downturn is when your brand matters most.
During times of economic stress, customers become more cautious. Their purchasing decisions carry greater weight, and the margin for error narrows. In this environment, your brand’s role as a shorthand for trust, reliability, and value is more important than ever.
The brands that endure aren’t the ones that go quiet. They’re the ones that lean in. And they’re often the ones that come out on the other side stronger than ever before.
To lean in is to reaffirm the role your brand plays in people’s lives by delivering clarity, consistency and conviction at every touchpoint. It’s making sure your sales team is equipped to tell a compelling story. It’s ensuring employees remain aligned, motivated, and confident in what the brand stands for. And yes, it’s about maintaining (and maybe even increasing) your ad budget.
Cutting brand investment during a downturn doesn’t just quiet your message. It creates a vacuum your competitors will fill.
The data backs this up.
· Kellogg’s doubled its advertising during the Great Depression while Post scaled back. The result? Kellogg saw a 30% increase in profits and established itself as breakfast powerhouse for decades to come.
· Samsung established its tech leadership amid the 2008 financial crisis, seeing its earnings jump because it stayed true to its brand, while continuing to market a high-dollar product.
· During the COVID-19 pandemic, while Unilever and L’Oréal scaled back advertising, Procter & Gamble didn’t let the foot off the gas with its CFO telling investors, “This is not the time to hold back.” It saw stock prices rise 15% that year.
Brand equity is along game, and moments of disruption are when the strongest players harness their brand to pull ahead.
To be proactive, invest in real consumer insight. Refine your brand strategy. Clarify your brand’s story and bring it to life in the most compelling way possible—not just externally, but internally. Keeping your people is just as important as keeping your customers in times of uncertainty.
Economic storms are inevitable, but your brand can be the port in the storm. It’s the time to go all in on your brand and your convictions, because when the market stabilizes, the companies who leaned in will already be ahead.
Matt Williams is chief growth officer and managing partner for Brand Federation. Prior to joining Brand Federation in 2019, Matt was CEO of The Martin Agency, one of the world’s most creatively recognized advertising agencies. Over his 26-year career at Martin, he helped the agency become the 25th-largest in the US and managed brand strategy development for world-class brands like GEICO, OREO, UPS, Discover Financial, Walmart, and Benjamin Moore. Matt also is a Clinical Professor in the marketing department at the Mason School of Business at William & Mary. He teaches in the MBA program and is the developer and Faculty Director of the school’s Online Masters in Marketing.
