Every recession seems to follows familiar pattern.
Finance teams tighten budgets. Marketing is often one of the first areas to be scrutinised. Campaigns are delayed, sponsorships disappear, agency spends are cut back, and advertising dollars are reduced.
It feels like the sensible thing to do.
History tells a different story.
Some of the world's most memorable marketing campaigns—and some of today's biggest brands- were born during economic downturns. Rather than disappearing from consumers' minds, they recognised the opportunity to create something incredibly valuable: attention.
When your competitors go quiet, your marketing can take front and centre.
The Evidence is Overwhelming
The Harvard Business Review study ‘Roaring out of Recession’ looked at 4,700 businesses and three recessionary periods (1980-82, 1990-91 and 2000-02), examining performance in the three years pre-recession, the recession itself and the three years following.
The winners weren’t those who cut costs faster and deeper than their rivals. It was those that mastered the balance between cutting costs to survive today and investing their capital in the right areas to grow tomorrow.
Marketing is generally a highly effective use of capital during a recession for the majority of businesses.
McGraw-Hill tracked companies through the 1981–82 recession and found those maintaining advertising grew sales by 256% more than competitors over the following three years.
The IPA's analysis of UK advertising found brands maintaining investment recovered faster and achieved greater long-term profitability.
The lesson is remarkably consistent.
Recessions end.
Brand memories last.
Great Marketing Doesn't Require Great Budgets
There is no need to go overboard on the marketing spend. Some of the most famous campaigns weren't built on lavish spending.
Airbnb — "Belong Anywhere"
Following the GFC, Airbnb couldn't outspend hotel chains. Instead, they focused relentlessly on human stories, authentic photography, and the idea of belonging.
This clever use of ambush marketing set them on the path of success we see today.
Domino's Pizza — Radical Honesty
In 2009, while consumers were spending less, Domino's did something unheard of. They admitted their pizza wasn't good enough.
The campaign featured genuine customer criticism before showing how they'd reinvented their recipes.
Sales surged because honesty became their biggest marketing asset.
Procter & Gamble — Olympics
During the aftermath of the financial crisis, many brands reduced sponsorship spending.
P&G in the US doubled down.
Their "Thank You, Mum" campaign became one of the most emotionally powerful Olympic campaigns ever created at that time, strengthening dozens of sub-brands simultaneously.
Coca-Cola vs Pepsi
Throughout history, Coca-Cola has consistently maintained advertising during downturns while competitors often pulled back.
The result has been increased market share following several recessions.
Innovation Thrives Under Constraint
Necessity, as they say, really is the mother of invention.
When budgets are unlimited it's easy to buy attention. When money is scarce, marketers have to earn it.
That's when creativity flourishes.
Think - viral campaigns, earned media, below the line marketing, partnerships, social storytelling, and community engagement.
When you dig into the history books, you realise that many of today's marketing approaches evolved because someone had less money than their competitors.
What This Means for New Zealand
New Zealand businesses face their own economic pressures.
Right now consumers are cautious. Household costs keep increasing. Boards and shareholders want measurable returns.
That's precisely why marketing matters. During uncertain times, people don't stop buying - they become more selective.
Strong brands create trust. Trust reduces risk. And reduced risk drives purchase decisions.
The companies remembered when confidence returns won't necessarily be those with the biggest budgets. They'll more likely be the ones that stayed visible, stayed relevant and kept telling their story.
We can point to several recent New Zealand examples where marketing remained focused and strong at times when others stayed quiet.
ANZ’s "We're with you" campaign during the COVID-19 pandemic was an empathetic, community-focused initiative in Australia and New Zealand to reassure customers facing economic uncertainty. It shifted the bank's traditional product-focused advertising toward brand support, emphasizing financial relief measures, mental health, and continuity of service.
During the same period and as a result of border closures, Tourism New Zealand's "Do Something New, New Zealand" was a highly successful domestic tourism campaign launched in May 2020 to encourage Kiwis to explore their own backyard, support local businesses, and discover hidden gems.
Mitre 10 has successfully continued brand building and doubled down on emotional, heart-warming marketing with campaigns like “With you all the way” while its competitor relies heavily on price-guarantee messaging and warehouse discounting.
The Long and the Short of It
In you need more evidence and your CEO or Board needs more convincing, have a read of “The Long and the Short of It” marketing gurus Les Binet and Peter Field (2013).
It provides data-driven guidance on balancing long-term brand building with short-term sales activation, drawing on nearly 1,000 advertising case studies across 30 years.
The Tough Get Going
There's an old saying that when the going gets tough, the tough get going.
For marketers, perhaps it should read:
When the going gets tough, the smart marketers keep marketing.
This is not about “spending more on marketing”. This is about asking whether you and your team have the strategic courage to recommend disciplines, evidence-based investment – with a creative twist of course that only the best marketers can deliver!
Because history doesn't remember the companies that went quiet. It remembers the ones that found new ways to be heard.