In uncertain economic times, businesses instinctively look for ways to tighten their belts. Unfortunately, design and marketing are often the first budgets to be slashed. While this may seem like a logical short-term cost-saving measure, history tells us that cutting back on branding, design, and marketing can do more harm than good in the long run.

The immediate reaction: why businesses cut marketing & design first

When economic uncertainty looms, businesses prioritise what they perceive as "essential" functions, often relegating branding, marketing, and design to the "nice-to-have" category. However, this mindset overlooks a crucial fact: consumer behaviour doesn’t stop in a downturn, it shifts. Those who stay visible and relevant during challenging times can capture a larger market share while competitors retreat.

The long-term impact: Thriving vs. merely surviving

History has repeatedly shown that companies that continue investing in branding and marketing during economic downturns emerge stronger when the market rebounds. Studies indicate that brands maintaining or increasing their marketing spend during a recession tend to gain market share and recover faster than those that cut back.

Take Apple, for example. During the 2008 financial crisis, while many tech companies pulled back on marketing, Apple continued investing in innovation and branding. As a result, it not only weathered the downturn but also reinforced its dominance in the market.

Lessons from past recessions: brands that got it right

Several notable brands have demonstrated the value of investing in design and marketing during economic downturns:

Coca-Cola (Great Depression): Rather than cut back, Coca-Cola doubled its advertising efforts, solidifying its position as a household name.
Amazon (2000s Recession): Amazon increased its investment in innovation and marketing, leading to explosive growth when the economy recovered.
McDonald’s (2008 Recession): While competitors cut ad budgets, McDonald’s increased its marketing spend, leading to revenue growth and a stronger market presence.

Smarter, not bigger: How to be strategic with marketing budgets

Investing in design and marketing doesn’t have to mean spending recklessly. Instead, brands should focus on high-impact, cost-effective strategies that ensure visibility and engagement:

Brand storytelling: Authentic, compelling narratives help build deeper connections with customers.
Digital-first approach: Leveraging digital channels like social media, SEO, and content marketing can deliver strong ROI at lower costs.
Agile and data-driven strategies: Real-time insights allow businesses to pivot marketing efforts based on what’s working best.

Future-proofing through brand strength

A well-designed brand is more than a logo or a colour scheme, it’s a key asset that fosters customer trust, loyalty, and recognition. In an uncertain economy, consumers gravitate toward brands that offer consistency, reliability, and a strong sense of identity. Investing in thoughtful design and marketing ensures your brand remains top-of-mind, even in tough times.

Final thoughts: Recession-proofing your brand

Rather than viewing branding and marketing as expendable, businesses should see them as essential tools for resilience and growth. When the economy inevitably rebounds, the brands that maintain visibility, engagement, and innovation will be the ones best positioned to thrive.

Instead of asking, “Can we afford to invest in design and marketing?” perhaps the better question is, “Can we afford not to?”

Survive or thrive? Why cutting back on design & marketing in a downturn is a risky move