Why is it a mistake to cut marketing during a downturn?
We’ve seen it happen time and again: a crisis hits, and the immediate reaction for many businesses is to cut costs. In moments of panic and uncertainty, the marketing budget is often the first to go. It feels like the quickest and easiest way to save money. But what if that gut reaction is actually holding your business back?
Decades of marketing science confirm that going dark is one of the biggest mistakes a business can make. Research from the renowned Ehrenberg-Bass Institute and the work of marketing experts Les Binet and Peter Field have shown a clear pattern.
Sales fall
The data is clear: when a brand stops advertising, its sales and market share begin to decline. Studies of brands that went “dark” for a year or longer show that, on average, sales fell by about 16% in the first year. This decline gets steeper over time, with sales dropping by 25% after two years and 36% after three years without advertising. While some large, established brands may not see an immediate sales drop, this is not true for everyone. The research shows that small or growing brands are hit much harder and much faster, making it much more difficult and expensive to recover later on.
You give up ground
In a downturn, many of your competitors will also be cutting back. This means the market is less noisy, and your advertising has more impact. By continuing to market, you increase your “Share of Voice” (your brand’s share of all advertising in your industry). Research shows a direct link: for every 10 percentage points of “Excess Share of Voice” (when your Share of Voice is higher than your market share), you can expect to gain 0.5 percentage points of market share per year.
Rebuilding is expensive
When a brand stops advertising and loses market share, getting it back is a costly effort. According to research by BCG, regaining lost market share requires an investment of $1.85 for every $1 saved by cutting brand spending. In the long run, the money saved is far less than the cost of rebuilding a damaged brand.
Cutting your marketing might seem like the safe choice, but the evidence shows it’s a step in the wrong direction. Marketing is not a cost, it’s an investment in your company’s future. It’s how you stay visible, build trust, and adapt to a changing world. In times of uncertainty, your business needs a clear path forward, and a strong marketing strategy is the best way to light the way.
Stay tuned for more insights, and remember, Be Adapt.
João Correard de Ávila
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