10 February 2025

MAD Media believes that increasing advertising spend during a recession is a strategic power move!

Introduction

In times of economic uncertainty, businesses often slash budgets, with marketing expenditures among the first casualties. Yet history and data reveal a counterintuitive truth: companies that increase advertising spend during recessions not only survive but thrive, emerging stronger and faster than competitors. MAD Media has written this article to explore why bold investment in visibility during downturns is a catalyst for resilience and growth,

1. Less Competition, Lower Costs, Greater Impact

When rivals retreat, advertising becomes a buyer’s market. Ad rates often drop due to reduced demand, allowing businesses to secure premium placements at a fraction of the cost. With fewer brands vying for attention, your message cuts through the noise, maximizing ROI. For example, during the 2008 recession, brands like Amazon and Hyundai ramped up ad spend, leveraging cheaper ad space to dominate mindshare while competitors went silent. MAD Media understands that the market is tough, as such we have tailored packages to suit every business, allowing them to get their name up in lights on our boards!

2. Brand Trust: Visibility Equals Stability

Consumers gravitate toward familiar, active brands during crises. Maintaining—or increasing—ad presence signals strength and reliability, fostering trust. In the USA a McGraw-Hill study found that companies that advertised aggressively in the 1980–1985 recession saw 256% higher sales post-downturn than those that didn’t. By addressing consumer pain points empathetically (e.g., affordability, durability), brands cement loyalty that lasts beyond the recession.

3. Market Share Grab: Seize the Void

Recessions reshuffle market hierarchies. Competitors cutting ad budgets create vacuums ripe for exploitation. Kellogg’s famously doubled its ad spend during the Great Depression, overtaking rival Post Cereals to become the category leader—a position it still holds. By capitalizing on reduced competition and utilising MAD MEDIA’s digital billboard network, businesses can attract displaced customers and gain long-term market share.

4. Digital Agility: Precision and Adaptability

Modern digital tools such as MAD Media’s outdoor digital billboards, enable hyper-targeted, cost-effective campaigns. Real-time data & fast ad changes allow businesses to pivot messaging, emphasize value-driven offers, and optimize spend. For instance, during the 2020 pandemic, e-commerce brands used social media ads to reach homebound consumers, driving record online sales. This flexibility ensures ads resonate with shifting consumer priorities, from budget-friendliness to convenience.

5. Case Studies: Proof in the Pudding

- 2008 Recession: Amazon increased ad spend by 18%, focusing on value messaging. Its revenue grew 28% in 2009, while competitors floundered.

- COVID-19 Pandemic: Companies like Zoom and Peloton leveraged digital ads to meet surging demand for remote solutions, achieving explosive growth.

Risk vs. Reward

Critics argue that spending more amid revenue declines is reckless. However, recessions are temporary; brand equity built during this time pays dividends for years. Businesses can reallocate budgets (e.g., shifting from traditional to digital channels) rather than merely increasing spend. The key is strategic investment, not blind spending. MAD Media can tailor a billboard marketing campaign to suit your budget.

Conclusion: Recessions Are Springboards, Not Setbacks

Economic downturns separate the cautious from the courageous. By investing in advertising, businesses position themselves as leaders, build unshakable trust, and capture market share—all while competitors play defence. When the economy rebounds, these brands don’t just recover; they lead. In the words of marketing guru Seth Godin, “Recessions are when the future is built.” Will your business hide or seize the moment? Let MAD Media help you achieve sales success in your business.

Call to Action

MAD Media recommends you audit your marketing strategy today. Identify high-impact, low-cost (per view) channels, refine messaging to reflect consumer needs, and consider reallocating resources to stay visible. The recession will end—ensure your brand is first in line for the recovery!