Holding Onto Your Marketing Budget in a Downturn

If you’re a chief marketing officer (CMO), the current economic uncertainty undoubtedly creates anxiety for you, your team, and your agencies. The Mobile Marketing Association (MMA) has demonstrated the tight correlation between advertising spend and economic indicators like GDP growth by looking at historical data. But more importantly, marketers know from experience that when the economy turns, their budget is an easy target.

So, with a volatile stock market, continued supply chain issues, strategic hiring freezes and layoffs, inflation concerns, and cooling consumer spend, the big question is: What should marketers be doing now?

First, it’s worth taking a step back. The downturn will likely have dramatically different dynamics across sectors and geographies in terms of intensity and duration. Regardless of where a marketer sits, we know acquiring a customer can be costly. Some have argued it is five times (or even higher) the cost of keeping those we…

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This article was written by Janet Balis and originally published on hbr.org