AP in the News: To Recession-Proof Your Brand, Keep Calm and Measure On

June 21, 2022

This article by Nancy Smith, President & CEO of Analytic Partners, originally appeared in Advertising Week:


Rising inflation, plunging stocks, war in Europe, and last quarter’s shrinking GDP: the omens of recession are upon us. While the jury is still out on the downturn’s official onset, many business leaders have wasted no time embracing a range of cautionary initiatives, from hiring freezes to layoffs.


Austerity measures like these are part of the standard playbook for businesses facing times of economic uncertainty. Marketing and ad spending is often close to the front of the line when budgets need to be tightened.


But in times of crisis, research shows that slashing marketing budgets hurts brands more than it helps. Rather than defaulting to austerity policies informed by panic, brands should protect and recalibrate their media investments, test recession-adjusted messaging tactics, and use analytics to strategically allocate resources to build their brands in the short and long term.


Beware the Dangers of Overreaction


When a crisis looms, our natural first step is to act quickly by prioritizing caution and reducing risk. In light of the challenges and disruptions the pandemic brought to the world, business leaders are understandably sensitive to the risks of large-scale market shifts.


But despite the disruptions of the past two years, the changes that COVID visited upon organizations and business leaders have not been as fundamental or as lasting as initial dire predictions imagined. In fact, one key lesson the pandemic imparted is that times of economic uncertainty are not necessarily times of crisis for all brands. Recessions do not necessarily equate to lower ROI or diminishing returns, especially for businesses that continue to invest in long-term results.


Read the full article in Advertising Week





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