What should an advertiser or marketer do during a recession… or inflation… or stagflation?

Having navigated my clients through five recessions/stagflation, the historic Jimmy Carter 14% inflation rate (and Biden’s 20% in four years) … and 20% interest rates… I have some perspective.

I even have a strategy of hope and good news.

Obviously, history gives an indication of what is best and what is not. That’s why you should always examine the history of advertising and marketing during times of economic stress.

I can tell you that history gives a good roadmap to the future for companies to survive and prosper during economic uncertainties.

Business owners usually cut their marketing and advertising first to save money and cut expenses.

Is this the right strategy?

Here are just a few of the historical stats to help guide you:

  • 265% sales increase for companies that maintained or increased their ad budget during a recession or stagflation A McGraw Hill Research study of recession marketing revealed that “companies who continued to advertise during the two-year recession saw 256% higher sales than their competitor’s post-recession. Those who chose not to advertise during an economic slump saw virtually 0% market share increase and a rise in sales of only 18% once the economy regained traction.”
  • 5 times market share growth by increasing their budget during a recession In the last recession, only 18% of companies increased their marketing. But as a result, their market share growth outpaced other businesses by 2.5 times.
  • 9% increased their sales during and after a recession by increasing their advertising and marketing budgets. Harvard Business reveals that out of 4,700 companies in the 2008-2009 recession, 17% went into bankruptcy or were acquired, 80% slowly recovered, and it took more than 3 years to recover after the recession ended. However, 9% grew during and after the recession, and their ad budgets increased.
  • 3 years head start in growth and market domination by increasing their budget

Frankenberger and Graham’s (1976-1991) research found that firms that advertised during a recession increased sales during and after the recession, helping give a head start in recovery and sector domination for up to three years after the recession.

During the 2024-2025 inflationary period, with stagflation and a potential recession impacting both B2C and B2B buying, all your marketing and advertising copy for digital ads, landing pages, pre-roll, direct mail, video, and TV should have changed to reflect and take advantage of the new economic environment.

If not, you suffer a drop in response.

And a new plan should be developed now to move ahead and market properly.

Don’t give up out of fear.

Do it right.

Waiting will only result in lost time and money and allow competitors to move ahead.

The current recession or stagflation economy is likely to last 6-12 months, no matter what the election’s outcome is… and over 2% inflation much longer. That means changes to your prospects, perception, and buying budgets.

My team is here to help if you need guidance and speed in navigating the recession, inflation, and stagflation and catching the recovery so you can dominate your market.

Now is the time to be prepared for the new realities ahead.

Want to know how to Market and Advertise in an Economic Recession, Inflation, or Stagflation?

Call Michael Oppenheimer at 615-933-4647 or email him at [email protected].