When consumers tighten their wallets—should communication follow suit?
By Michaela Krause
In times of economic uncertainty, it's almost a reflex action every communication agency witnesses first hand: consumers pull back on spending, and businesses respond by slashing their communication budgets. But is sending your communication strategy into a black hole really the wisest move when the financial forecast looks stormy? 🌩️
At Laika, we tell our clients they shouldn’t underestimate the competitive advantage of courage. When everyone else goes quiet, the few voices still speaking enjoy significantly amplified resonance. Your competitors' silence creates a unique opportunity to connect with audiences hungry for guidance and solutions.
Once upon a time…
When marketing directors face pressure to reduce spending, communication efforts often find themselves first in line for the budget guillotine. It's understandable—these expenses can seem like "nice-to-haves" rather than mission-critical investments. The logic appears sound on paper: if consumers aren't buying, why keep talking to them?
But here's where things get interesting. Historical data consistently shows that brands maintaining or even increasing their communication presence during downturns emerge from economic clouds with significantly stronger market positions.
One brand historically stands out as the poster child for extra marketing spending when times get hard: Kellogg’s. In 1929, when all their competitors were tightening their belt alongside consumers, Kellogg doubled its ad budget, moved aggressively into radio advertising, and heavily pushed its new cereal, Rice Krispies, leading to an increase of their profits by over 30% 4 years after.
In more recent years, Amazon had a similar approach during the 2008 Great Recession: they kept releasing and communicating around new tech products, especially around their Kindle range. Slump economy, everyone is strapped for cash? Buy a tech gadget that is both cheaper and less space-consuming than actual nooks. The result? In the US, e-books were a more popular gift at Christmas 2009 than actual books.
Adjust, assess, articulate
Cutting communication budgets entirely is like putting your brand in cryosleep—you might preserve resources, but you'll wake up in a future where everyone has forgotten you exist. That is, if you even wake up.
Instead, consider these approaches:
Reallocate, don't eliminate. Review your communication mix with the precision of a space mission control center. Which channels deliver genuine ROI? Perhaps it's time to reduce broad awareness campaigns in favor of targeted approaches with measurable outcomes.
Refine your message. When consumers become more selective with spending, your value proposition must be crystal clear. What makes your offering essential rather than optional? How does it help customers navigate their own budget constraints?
Emphasize stability and trust. During uncertainty, consumers gravitate toward brands that project confidence and reliability. Your communication can serve as a stabilizing force—like a trusted mission commander during turbulence.
Smart tactics for constrained times
Let me be clear: I'm not suggesting reckless spending during uncertain times. Strategic adjustments are essential. But there's a vast difference between smart optimization and communication abandonment.
The smartest approach involves careful evaluation of which communication activities deliver genuine business impact and ruthlessly prioritizing those efforts. Think of it as mission-critical systems check—keeping essential functions running while temporarily powering down the nice-to-haves.
Being strategic doesn't mean abandoning creativity. In fact, constraints often fuel innovation:
Content partnerships that share costs while expanding reach
User-generated content campaigns that engage customers while reducing production expenses
Longer-format content with extended shelf life instead of fleeting campaign bursts
Authentic, less polished communication that often resonates more deeply while costing less
As we like to say at Laika, sometimes the most successful missions aren't the ones with the biggest rockets, but those with the smartest navigation systems. 🛰️
The false economy of communication cuts
While immediate savings from reduced communication activities are easy to measure, the long-term costs remain largely invisible until it's too late. Brand awareness, customer loyalty, and market positioning erode gradually—like a slow-developing oxygen leak that goes unnoticed until critical systems fail.
When growth returns (and it always does), brands that maintain a presence enjoy a significant head start. Those who went silent find themselves struggling against competitors who stayed connected with their audience throughout the challenging period.
When consumers tighten their wallets, communication strategies should evolve rather than disappear. The organizations that continue meaningful customer conversations during difficult periods aren't being financially irresponsible—they're making strategic investments in future market position.