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Why Cutting Your Marketing Budget in a Recession Hurts Growth—And What to Do Instead

Why Cutting Your Marketing Budget in a Recession Hurts Growth—And What to Do Instead

The Design Board, by UpSpring, is a proud member of SANDOW Design Group's SURROUND Podcast Network, home to the architecture and design industry’s premier shows.
team working on budget through collaboration


Would you slash your lifeline during a storm? That’s essentially what businesses do when they cut marketing during times of economic uncertainty. While pulling back on spending might seem like a safe move, history and data tell a different story: companies that maintain or even increase marketing efforts during downturns come out stronger, while those that cut often struggle to recover.

For building product manufacturers, home decor brands, architecture and design firms, and real estate developers, marketing isn’t a luxury—it’s an investment. The decisions you make now will shape your brand’s future. Let’s explore why reducing marketing in tough economic times can backfire and what you should do instead to not just survive but thrive.


The Hidden Cost of Cutting Marketing

1. Market Share Lost Is Hard to Regain

When competitors pull back and you stay visible, you win market share. Studies show that brands maintaining marketing during downturns see higher sales and profits when the economy recovers. One analysis of past recessions found that companies that continued advertising saw a 256% increase in sales compared to those that cut back. ¹ Additionally, a study by Harvard Business Review found that companies that increased ad spending during a recession saw up to 17% higher growth post-recession.²

256% increase in sales compared to those who stopped advertising


Beyond sales growth, losing market share in a recession can mean a longer, costlier recovery when economic conditions improve. Customers tend to stick with brands they are familiar with, and if you disappear during a downturn, your competitors will fill the void, making it significantly harder for you to regain lost ground. Brands that maintain a strong presence recover faster and outperform competitors when the economy rebounds.³

2. Out of Sight, Out of Mind

Brand awareness isn’t just about visibility—it’s about trust. If your audience stops hearing from you, they may assume your company is struggling or that you’re not a leader in the industry. Consistent marketing reassures clients that you’re stable, credible, and still innovating.


More importantly, a lack of visibility affects perceived reliability. In industries like architecture, design, and real estate—where long-term trust is crucial—disappearing from public view can damage relationships and erode client confidence. A steady presence ensures that when projects restart, your brand is the first one considered.

3. Lower Ad Costs = Higher ROI

During economic downturns, ad competition decreases, making it cheaper to run campaigns. Whether it’s digital ads, PR placements, or influencer collaborations, you get more bang for your buck. Studies show that cost-per-click (CPC) rates on digital advertising can drop by 20-30% during recessions, allowing brands to reach their audience at a lower cost while maintaining brand presence.⁴


Similarly, media outlets often reduce advertising rates and are more open to earned media opportunities. This means you can get more coverage for the same investment, improving your return on ad spend and ensuring your brand stays visible without significantly increasing your budget.

4. Buying Decisions Don’t Stop—They Shift

Even in a recession, architects, designers, and developers still need products and solutions—they’re just more selective. While budgets may tighten, decision-makers still prioritize essential purchases and trusted brands. If your competitors go silent and you keep engaging with your audience, your brand will be top-of-mind when it’s time to make a purchase. In fact, 60% of consumers say they will continue to buy from brands they trust, even during economic downturns.

60% of consumers say they will buy from brands they trust despite the economy


Additionally, purchasing decisions may shift toward products that offer long-term value, durability, and efficiency. Positioning your brand as an investment rather than an expense—through strong messaging and consistent marketing—can make the difference in retaining customers during leaner times.


What to Do Instead of Cutting Marketing

If slashing marketing isn’t the answer, what should you do? Here’s how to make your budget work smarter, not smaller:
1. Focus on High-ROI Marketing Channels

Instead of eliminating spend, shift it to the most effective platforms. For B2B brands in architecture and design, that means:

  • SEO and content marketing (blogs, case studies, whitepapers). Businesses that prioritize SEO get 14.6% conversion rates compared to 1.7% from traditional outbound marketing.⁶ Create evergreen content that addresses industry pain points and showcases your expertise, ensuring long-term visibility.
  • Email marketing (nurturing leads, maintaining relationships). For every $1 spent on email marketing, businesses see an average return of $42.⁷ Segment your email lists to provide personalized content and offers, keeping engagement high.
  • Industry awards and recognitions. Securing awards in the architecture and design space helps establish credibility, enhances brand perception, and can be leveraged in PR efforts to showcase your industry leadership.
  • Media outreach campaigns. Build relationships with key industry journalists and editors, pitch story ideas, and secure placements in top-tier design and trade publications to keep your brand in front of decision-makers.
  • PR and media placements (getting featured in industry publications). PR efforts can increase brand credibility by over 50%, making customers more likely to choose your brand.⁸ Prioritize thought leadership articles, guest contributions, and expert commentary.
  • Social media engagement (especially LinkedIn and Instagram for visuals). Companies that maintain social media engagement during downturns see up to 20% higher engagement rates.⁹ Develop platform-specific strategies, such as behind-the-scenes content on Instagram and thought leadership posts on LinkedIn.


Additionally, purchasing decisions may shift toward products that offer long-term value, durability, and efficiency. Positioning your brand as an investment rather than an expense—through strong messaging and consistent marketing—can make the difference in retaining customers during leaner times.


What to Do Instead of Cutting Marketing

If slashing marketing isn’t the answer, what should you do? Here’s how to make your budget work smarter, not smaller:
1. Focus on High-ROI Marketing Channels

Instead of eliminating spend, shift it to the most effective platforms. For B2B brands in architecture and design, that means:

  • SEO and content marketing (blogs, case studies, whitepapers). Businesses that prioritize SEO get 14.6% conversion rates compared to 1.7% from traditional outbound marketing.⁶ Create evergreen content that addresses industry pain points and showcases your expertise, ensuring long-term visibility.
  • Email marketing (nurturing leads, maintaining relationships). For every $1 spent on email marketing, businesses see an average return of $42.⁷ Segment your email lists to provide personalized content and offers, keeping engagement high.
  • Industry awards and recognitions. Securing awards in the architecture and design space helps establish credibility, enhances brand perception, and can be leveraged in PR efforts to showcase your industry leadership.
  • Media outreach campaigns. Build relationships with key industry journalists and editors, pitch story ideas, and secure placements in top-tier design and trade publications to keep your brand in front of decision-makers.
  • PR and media placements (getting featured in industry publications). PR efforts can increase brand credibility by over 50%, making customers more likely to choose your brand.⁸ Prioritize thought leadership articles, guest contributions, and expert commentary.
  • Social media engagement (especially LinkedIn and Instagram for visuals). Companies that maintain social media engagement during downturns see up to 20% higher engagement rates.⁹ Develop platform-specific strategies, such as behind-the-scenes content on Instagram and thought leadership posts on LinkedIn.

businesses see a return of $42 for every $1 spent on email marketing

2. Double Down on Thought Leadership

Your audience is looking for guidance during uncertain times. Position your brand as an industry leader by:

  • Publishing data-driven reports and trend analyses that offer valuable insights.
  • Hosting webinars and panel discussions featuring industry experts and partners.
  • Creating video content that educates and informs your audience.
  • Leveraging case studies and testimonials that highlight successful projects.

According to Edelman’s research, 81% of business decision-makers say thought leadership increases their trust in a brand.¹⁰ Now is the time to be a trusted source of expertise.

Recessions Are Temporary, Brand Equity Is Forever


The economy will recover. When it does, the brands that stayed visible, engaged, and strategic will be the ones leading the charge. Cutting marketing might save dollars today, but it can cost your business years of lost growth.

At UpSpring, we specialize in helping product manufacturers, home decor brands, architecture and design firms, and real estate developers navigate uncertain times with strategic marketing and PR solutions. Our team understands the unique challenges of your industry and develops customized strategies that maximize visibility, drive engagement, and position your brand for long-term success.

Let’s create a plan that ensures your brand remains top-of-mind and continues growing—regardless of economic conditions.

LET'S TALK

¹ McGraw-Hill Research, 1986.
² Harvard Business Review, "Roaring Out of Recession," 2010.
³ Nielsen, "The Long-Term Effects of Advertising," 2021.
⁴ Edelman Trust Barometer, 2023.⁵ HubSpot, "State of Inbound Marketing," 2022.
⁶ DMA, "Email Marketing Benchmarks," 2022.
⁷ Cision, "Global State of PR," 2021.
⁸ Sprout Social, "Social Media Trends Report," 2023.
⁹ Edelman, "B2B Thought Leadership Impact Study," 2022.
¹⁰ Bain & Company, "The Value of Keeping the Right Customers," 2021.