The Coronavirus continues to wreak havoc throughout the world, and it has thrown our economy into a recession. For many companies, what's next regarding their marketing remains an unanswered question.

You may think it is going to sound self-serving from a marketer to say not to cut your marketing/ ad budget. But don't take my word for it. For a few recessions, you may have heard that advertising in a recession will increase your market share. That is still true today but there is much more to the story.

According to Profit Impact of Market Strategies (PIMS) database, a comprehensive, long-term study of strategic business units, "companies that lower advertising budgets - or eliminate them altogether - during a recession put themselves at risk when economic uncertainty subsides."

An analysis using data from thousands of companies showed that businesses that lowered their ad spend during a recession saw “sales and income fall by 20-30% over the next two years as a result.”

On the contrary, the Marketing Science Institute found that increases in marketing spend by businesses during recessions have “boosted financial performance throughout the year following the recession.” Furthermore, analysis found that businesses which increased ad spend during a recession increased their market share as the recession subsided.

During these times of economic uncertainty, it is more important than ever to make sure your marketing needs are not put on the shelf, to be resumed at a later date. Now is the ideal time to reevaluate where you are putting your sales and marketing efforts. If you, or a client you advise do not have marketing represented in the C Suite please call or email me to discuss with no obligation. Thanks for taking a look.