\u201cIn times of economic uncertainty, it\u2019s tempting for brands to decrease marketing budgets. But cutting marketing during a recession is like turning off your car\u2019s engine when driving uphill. You won\u2019t save money on gas\u2014you\u2019ll just roll backward.\u201d<\/p>\n\n\n\n
Brands that thrive during recessions don\u2019t view marketing as a cost they need to cut. Instead, they see it as a growth engine. When competitors cut back on marketing, it\u2019s an opportunity for your brand to gain brand visibility and market share.<\/p>\n\n\n\n
Strategic marketing can keep customers engaged, build trust, and position your brand for long-term resilience\u2014even in a downturn.<\/p>\n\n\n\n
History shows that brands that maintain or increase marketing spend during downturns recover faster and gain market share.<\/p>\n\n\n\n
Marketing during a recession is top of mind again in 2025. According to the latest estimates from Goldman Sachs and J.P. Morgan, there\u2019s a 45%<\/a> to 60% chance of a recession<\/a> this year.<\/p>\n\n\n\n Some brands are repeating past mistakes\u2014cutting back on marketing when it matters most. <\/p>\n\n\n\n For example, Temu and Shein recently slashed their U.S. marketing budgets in anticipation of a recession. (Although tariffs also played a role.) Both apps dropped nearly 60 spots in U.S. app rankings, and downloads declined 62%<\/a>. <\/p>\n\n\n\n Brands that adjust their budgets strategically\u2014rather than making broad cuts\u2014tend to outperform their competitors during and after recessions.<\/p>\n\n\n\n During a recession, people don\u2019t stop spending, but they are pickier about their purchases. They watch their budget and put their money where it has the most value. Before every purchase, consumers ask: \u201cIs this worth it?\u201d<\/p>\n\n\n\n Marketing departments must take a similar approach. Rather than cutting costs completely, spend your marketing dollars more effectively with these five recession marketing tips.<\/p>\n\n\n\n In economic downturns, marketing messages must adjust to changing consumer behavior. <\/p>\n\n\n\n For example, campaigns that push overconsumption and an unattainable luxury lifestyle will likely fall flat. It makes your brand seem unrelatable and out-of-touch. <\/p>\n\n\n\n Prada has thrived during tough times because it adjusted its messaging to focus on long-term value, quality, and craftsmanship. <\/p>\n\n\n\n While other luxury brands are struggling with the economic slowdown, Prada is seeing record sales<\/a>. Revenues were up over 12% in the first quarter of 2025. <\/p>\n\n\n\n Despite economic fluctuations, the Prada brand Miu Miu\u2019s popularity has soared with retail sales up 60%. Miu Miu is the top brand in the world right now because it has a clear brand identity and a deep understanding of its audience.<\/p>\n\n\n\n Your target audience\u2019s purchasing power and behaviors may change during a recession, so it\u2019s a good chance to re-evaluate them. <\/p>\n\n\n\n According to Harvard, there are four types of consumers in a recession:<\/p>\n\n\n\n Figuring out where your audience fits within these groups helps create more effective marketing. <\/p>\n\n\n\n For example, to reach slam-on-the-brakes consumers, brands must show long-term value or affordability. Consider a discount or promotion.<\/p>\n\n\n\n To attract live-for-today audiences, your brand should offer unique experiences and convenience. They still like a good value for their money, but they\u2019re more likely to spend on fun experiences like travel or events.<\/p>\n\n\n\n Gather data on all the marketing campaigns you\u2019re currently running. Ideally, collect historical data for at least 6-12 months to identify which channels and tactics deliver results.<\/p>\n\n\n\n Then, set benchmarks for performance metrics like:<\/p>\n\n\n\n The metrics you prioritize will vary depending on your goals. However, these tend to be the most important for marketing in a recession. They focus on efficiency, customer retention, and optimizing spend. <\/p>\n\n\n\n Once you have a clear picture of every marketing campaign and its performance, adjust your marketing budget. Cut spending on campaigns that aren\u2019t performing, and reallocate to your biggest revenue drivers. Often, these tactics have low cost, low risk, and high ROI.<\/p>\n\n\n\n Reporting and analytics are even more critical when there\u2019s economic uncertainty. A set-it-and-forget-it approach can be fatal.<\/p>\n\n\n\n During a recession, trends, customer behavior, and spending habits change fast. <\/p>\n\n\n\n Staying on top of your data helps you catch drops in ad performance, sales, and other key metrics\u2014and react quickly. When you track everything, you can adjust your marketing budget, pivot strategy, and tweak messaging to improve performance.<\/p>\n\n\n\n Here\u2019s a basic checklist to track your marketing:<\/p>\n\n\n\n Influencer marketing is a cost-effective, low-risk strategy when done right. Despite recession fears, influencer marketing is one area where most brands aren\u2019t cutting costs. <\/p>\n\n\n\n According to a study by LTK<\/a>, over 50% of brands plan to increase budget spend on creators in 2025. Overall, US brands will spend over $10 billion on influencer partnerships<\/a> this year. <\/p>\n\n\n\n If you\u2019re reviewing your marketing budget, here\u2019s why to keep or even up your influencer marketing spend:<\/p>\n\n\n\n That said, simply running influencer campaigns doesn\u2019t guarantee success. Like any marketing strategy, it\u2019s all in the details. Many marketers face tighter budgets and growing pressure to do more with less. A possible recession puts more strain on those resources.<\/p>\n\n\n\n However, it can also create opportunities to refine and even innovate your marketing strategy. To create low-risk, high-reward influencer campaigns, keep these expert tips in mind.<\/p>\n\n\n\n The most effective influencer partnerships are when the creator\u2019s audience matches your ideal customer. <\/p>\n\n\n\n Using GRIN\u2019s Creator Discovery Suite, you can find creators who align with your ideal customer profile (ICP). There are over 190 million Instagram, TikTok, and YouTube influencers to choose from, and you can search by demographics, engagement, and other metrics. <\/p>\n\n\n\n You can also identify creators through:<\/p>\n\n\n\n Paying an upfront influencer fee is risky, especially when budgets are tight and you\u2019re working with a new creator. Gifting is another low-risk partnership structure. Instead of spending marketing dollars, you\u2019re only paying for the cost of goods.<\/p>\n\n\n\n Brands use GRIN to manage influencer gifting<\/a> too. After connecting your store, you can view products and inventory and send gifts without leaving GRIN. You\u2019ll also see data like which products your creators like most.<\/p>\n\n\n\n There\u2019s no guarantee a creator will post when you gift them products. However, they likely will if they\u2019re aligned with your brand and find your product useful.<\/p>\n\n\n\n Demand for influencer marketing is booming, and creators are more savvy about negotiating their rates. Some creators are also raising prices in anticipation of a recession. <\/p>\n\n\n\n Generally, influencers with larger followings charge more.<\/p>\n\n\n\n However, a large follower count doesn\u2019t always mean you\u2019ll reach a larger, engaged audience. <\/p>\n\n\n\n Partnering with celebrities and mega influencers (1M+ followers) is high-cost and risky. Instead, consider partnering with smaller nano or micro influencers<\/a>. <\/p>\n\n\n\n Smaller influencers tend to have higher engagement rates than mega influencers. They have tight-knit audiences that view them as authentic and trustworthy. <\/p>\n\n\n\n Nano and micro influencers also have lower rates and are more likely to do lower-cost partnerships like affiliate marketing and gifting.<\/p>\n\n\n\n Marketing in a recession is challenging. It\u2019s tempting to stop spending, tighten budgets further, and hope the economy will improve. <\/p>\n\n\n\n However, history shows brands that pull back typically lose in the long run. Cutting marketing during a recession causes you to lose sales, market share, and customers (often to competitors).<\/p>\n\n\n\n To not only survive a recession but come out stronger, double down on what works. When done right, influencer marketing is a cost-effective, scalable strategy that drives revenue without overspending your budget.<\/p>\n\n\n\nHow to market in a downturn: 5 recession marketing strategies<\/h2>\n\n\n\n
1. Align your messaging with consumer behavior<\/h3>\n\n\n\n
2. Re-evaluate your target audience<\/h3>\n\n\n\n
3. Audit your marketing mix<\/h3>\n\n\n\n
4. Track everything and pivot quickly<\/h3>\n\n\n\n
5. Invest in influencer marketing<\/h3>\n\n\n\n
Many brands use GRIN to find creators<\/a> and manage high-performing influencer campaigns. Let\u2019s dive into exactly how to get high returns on influencer marketing even with a tight budget.<\/p>\n\n\n\nHow to recession-proof your business with influencer marketing<\/h2>\n\n\n\n
1. Find creators that perfectly match your audience<\/h3>\n\n\n\n
2. Use affiliate marketing <\/h3>\n\n\n\n
Affiliate marketing<\/a> reduces that risk. Instead of a large upfront cost, offer creators commission on sales, so you only pay for actual results. It can also be easier to track. Analyze clicks, conversions, and revenue from affiliate links and measure the partnership\u2019s value.<\/p>\n\n\n\n3. Prioritize gifting and low-risk partnerships<\/h3>\n\n\n\n
4. Partner with smaller influencers<\/h3>\n\n\n\n
Influencer marketing in a recession: A low-risk, high-reward strategy<\/h2>\n\n\n\n
Updated: May 2025<\/h3>\n\n\n\n
Frequently Asked Questions<\/h2>\n\n\n\n