Inflation, high energy costs and rising interest rates are making 2022 a difficult year for many businesses. Marketing budgets are among the first to be cut when the pressure increases.

That is understandable. It is also often a mistake.

Businesses that cut marketing during downturns lose visibility at exactly the moment when competitors with weaker nerve do the same. The result is that those who hold on typically win market share more cheaply than they otherwise could.

But that does not mean keeping everything as it is. It means prioritising more sharply.

What should be cut first?

Channels you cannot measure If you are spending on something you do not know is working: advertising packages in local publications, sponsorships with no clear goals, trade shows with no follow-up, these are natural places to start.

Paid social with poor ROAS Facebook and Instagram ads that do not deliver measurable results should be scaled down or paused. Not all paid social is bad, but campaigns that cannot document their value are hard to justify when budgets are tight.

Content production for volume Blog posts written for SEO volume without a strategic goal are not worth maintaining. Better to publish half as many and do them thoroughly.

What do you keep, and ideally strengthen?

The website Your website is your cheapest salesperson. It works around the clock without a salary. Investment in better content, faster loading or clearer conversion flows typically delivers a higher return than most advertising campaigns.

SEO and organic content Organic search traffic costs nothing per click. It takes time to build, but it is durable. In difficult times, this is one of the most capital-efficient channels available.

Email marketing Low cost, high conversion rate, owned channel. A well-managed email list is one of the most robust marketing investments an SMB can make.

Existing customers It costs five to seven times more to win a new customer than to keep an existing one. In tighter times, customer retention, upselling and referrals from satisfied clients are worth more than ever.

The prioritisation framework: owned, paid, earned

A simple way to think about it:

Owned: Your website, email list, content, channels you control and do not pay per view. These should be protected and strengthened.

Earned: Coverage, reviews, organic search, sharing, visibility you do not pay for directly. Investment in quality and relationships drives this.

Paid: Advertising, scalable but budget-dependent. Can be reduced when budgets are tight without damaging long-term positioning: provided owned and earned are strong.

Many SMBs have invested heavily in paid and little in owned and earned. That is a vulnerable position in a period like this.

An unconventional observation

Customers are cutting marketing. That means ad prices fall, visibility is cheaper and competitor voices go quiet. For businesses with something to say and the means to say it, this is an opportunity window.

Want to review which marketing investments deliver the most value for your situation? Get in touch.