newsletter: advertising in uncertain times | a resource guide
April 29, 2025
The ongoing threat of US tariffs and the resulting financial uncertainty are putting pressure on businesses worldwide. It’s tempting to pull back on spending when this type of uncertainty looms. But here’s the thing: research consistently shows that cutting ad spend now creates future problems for a brand’s health and its bottom line.
To help marketers navigate these challenging times, we’ve pulled together a collection of insights from industry-leading experts. Drawing on intelligence from Harvard Business Review, the Ehrenberg-Bass Institute, and thought leaders like Mark Ritson, Peter Field, and Les Binet, this collection is designed to help businesses make decisions today that will position them for even greater success tomorrow.
Here’s what the experts want brands and agencies to know:
Going dark costs more in sales than you know. According to Ehrenberg-Bass research, brands that stop advertising see sales decline by 16% after just one year and an astonishing 58% after five years.
Brand building matters even more in tough times. Peter Field’s analysis of Canadian data shows a clear pattern: strong branding improves mental availability, which is crucial for advertising effectiveness. Looking at the 2020 economic downturn, Field found a direct correlation between brand-building and business success: the more brand-building elements in advertising creative, the better the business outcomes. As Peter advises, “The only sensible course for any advertiser who wants to maintain a presence through this recession is to be putting money into long-term brand building, because the role of that investment is for the recovery, not for now.”
Increasing Share of Voice. While maintaining a brand’s share of voice in the market is always smart, recessions provide brands with growth opportunities, as the investment required for a brand to achieve an excess share of voice (ESOV) typically decreases.
“Spectacularly Superior” Business Growth. Marketing guru Mark Ritson doesn’t mince words, calling it an “idiot move” to slash marketing when times get tough. Drawing on a century of research and case studies, he explains, “The companies that maintained ad spend, or even increased it, during a recession saw little advantage during the hard months of the squeeze. But the minute the green shoots of growth appeared, their growth was spectacularly superior versus competitors that cut back during the recession. You maintain the long of it because its impact is delayed but substantial, and it will kick in exactly when you need it as the recession ends.”
Source: University of South Australia, Ehrenberg-Bass Institute, https://www.marketingscience.info/when-brands-stop-advertising/
Source: Peter Field, The Alchemy of Effectiveness: A Focus on Canada