Does advertising pay off in times of recession?

In times of crisis all cost objects of a company are put to the test. As a consequence, many companies save on advertising first. That seems natural as advertising is often considered not essential.

Of course it is very important to continuously check the communication strategy considering efficiency and effect and not only in times of crisis. It is known that in times of recession especially medium-sized companies are among the losers as advertising budgets are limited and a positioning in the low price segment is often impossible. Therefore, rather than cutting the advertising budget winners act anti-cyclical. Naturally, there is no universal advice on this matter. It is important to analyze every situation individually. However, it is certain that times of crisis demand a committed approach and activities that are visible to and valuable for the customer.

As a consequence, promoting marketing especially in hard times increases the chance to emerge strengthened from a crisis.