It's not uncommon for businesses to cut back on marketing budgets to save money in a tough economy. According to Imagine Visual Marketing studies have shown that 75% of U.S. companies retract marketing and advertising budgets when the Economy starts to plummet. As companies begin to cut back budgets, they must refocus and invest in marketing tools that are proven to be beneficial.
In fact, a down economy can be a tremendous opportunity for businesses to refocus marketing tactics. Imagine says, smart businesses can put their money into cost-efficient media channels that deliver growth opportunities and a positive return on investment. Fewer companies are marketing in a down economy, giving the companies who are marketing a competitive advantage over their competition.
A study was conducted by the Wall Street Journal in February 2008 showing that companies either chose to downsize marketing budgets in a down economy or they wait to see what happens as the Economy plummets. However, history would tell us to react differently. McGraw-Hill conducted a study during the recession in 1981-1982, analyzing 600 companies from 16 different industries. The study showed that companies that continued to market, not only continued to grow during the recession, but moved past their competitors.
