"When the economy gets tight, the first thing most companies do is cut marketing costs. This leaves the door wide open for you. If you keep going while your competitors go quiet, your brand gets noticed way more for a lot less money."
"In 2020, Procter & Gamble doubled down on marketing while its competitors cut back due to the COVID-19 pandemic. They kept their brands impossible to miss while their target audiences were stuck home and online. As a result, P&G sales saw a 5% increase over the previous year, even when everyone around had a massive downfall."
"View lower acquisition costs as a green light to push harder, not an excuse to save. If your ads are bringing in more than they cost, keep scaling them up."
"Despite a luxury slump in 2024, Prada Group refused to cut marketing to protect short-term margins. They saw a 4% sales bump while other fashion houses were sliding."
During economic downturns, proactive companies can capitalize on opportunities that competitors avoid. Growth investors have increased their investments significantly, with a large portion directed towards a select few companies. Maintaining marketing efforts during tough times can lead to lower customer acquisition costs and increased brand visibility. Historical examples, such as Procter & Gamble and Prada Group, demonstrate that continued investment in marketing during downturns can result in sales growth, even when competitors are cutting back. Companies should view reduced acquisition costs as an opportunity to expand rather than retreat.
Read at Entrepreneur
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