You’ve likely heard the argument to leave your marketing budget untouched or to even increase spend in a recession. The idea is that there is more market share to capture when your competitors pull back. As a small business owner myself, I know this advice may not be realistic when cash flow is negatively impacted.
Instead, I argue there’s a middle ground for small and midsize businesses. Now is the time to get strategic with your marketing dollars to ensure you can weather the storm of uncertainty and even come out ahead without having to spend more.
Keep the lights on
Tariffs, recession fears, rising prices and potential layoffs dominate headlines right now. As you look to the second half of the year, this might be causing you to take a close look at budget forecasts and reevaluate spending. One of the biggest mistakes I see business leaders make during times of uncertainty is cutting their marketing and advertising budgets altogether.
You need to keep up some level of investment in your marketing efforts or you risk erasing years of strategic gains in trust, relevance, awareness and more. You are also opening the door for competitors to gain market share and attract top talent.
Consider campaigns
Think about your marketing strategy in terms of campaigns or projects rather than an ongoing annual budget. For example, you might ask your team to identify one strategic opportunity each quarter and focus your budget there. You might not be able to afford to maintain your ongoing advertising spend, but use analytics to focus on the most effective channels and invest in projects or short campaigns. This allows you to concentrate the dollars you have on opportunities that can move the needle.
Don’t forget about your internal resources: your employees. Employee-shared content on social media receives eight times more engagement than content shared from a brand, and it can increase a brand’s message reach by 561 percent. Consider training employees on social media best practices customized to your business.
Thinking in terms of projects or campaigns will force you to maintain some level of marketing spend but will allow you to still cut back and not commit to an annual contract or ongoing retainer. Remember, brands that stay visible tend to recover more quickly and experience faster long-term growth.
Play the long game
Marketing is a long-term strategy and it builds upon itself. While it’s tempting to focus only on short-term tactics, it’s important to remember this when considering those budget cuts or even layoffs. If you’re expecting instant results, you may miss the big picture. Awareness, trust and authority take time to build but can be destroyed in an instant.
If you haven’t already, economic downturns can be the perfect time to consider an external public relations partner. Firms can supplement human capital in hiring freeze environments. They also have a close eye on the big picture and will help you keep a clear, consistent brand message. It’s that consistency that will help you maintain trust and recognition.
In times of uncertainty, businesses of any size can be thrust into a crisis. From internal policy decisions to layoffs and rising costs, leaders are under the microscope of public opinion. An external partner ensures your team is prepared, trained, and equipped with a plan to act quickly.
Yes, it’s true there is more opportunity during economic instability. However, it’s just as important to balance short-term needs with long-term brand growth.
Kristi’s article was originally posted in Inc. on May 21, 2025.