Cutting brand marketing when times get tough might seem like a smart move for small and medium businesses—but evidence shows it’s a costly mistake. Investing in your brand protects future sales and amplifies the impact of every other marketing dollar you spend.
Why Many Marketers Still Value Branding
Most marketing leaders—about 77%—say a strong brand identity is essential for growth. Typically, companies dedicate between 10% and 20% of their marketing budgets to branding. What’s telling is that there’s virtually no group of marketing directors who say branding isn’t important. If anything, it’s become more essential as competition for attention keeps intensifying.
The Temptation to Cut Brand Spend
When budgets shrink, many small businesses pivot to short-term, sales-focused campaigns. That’s understandable, but short-term thinking can create long-term damage. History and research show that companies that maintain or even modestly increase their brand spend during economic downturns recover faster and stronger when the market rebounds.
Branding’s Direct Impact on Sales
Branding ROI may not always appear right away, but the data is clear:
- Companies with consistent branding across platforms see revenue increase by up to 23%.
- 81% of consumers refuse to buy from brands they don’t trust.
- Consistent branding improves recognition by up to 80%, and even simple factors like a distinctive color palette enhance recall.
- Over time, strong brands enjoy lower acquisition costs, greater loyalty, and much higher lifetime value—emotionally connected customers can be worth 306% more.
Why Small Businesses Can’t Afford to Disappear
When small and medium businesses go “dark” on branding, they risk vanishing from customers’ minds. Research shows buyers need 6–7 impressions before a brand sticks. Go quiet for a few quarters, and all that recognition and trust you’ve built starts to fade. While short-term ads can spark immediate sales, they rarely build the lasting preference or word-of-mouth that keeps customers returning.
Case Study: Regional Theatre Launches Image Campaign
The Grand Opera House in Wilmington DE, a NüPOINT client, had a simple yet urgent goal: stay visible, stay connected, and keep the brand conversation going in a challenging market. The team leaned into a multi-platform campaign highlighting the joy of live theater, that we dubbed the GET campaign. Using phrases such as “GET Excited at the Grand,” “GET Entertained at the Grand,” “GET Involved at the Grand,” GET Broadway at the Grand,” we highlighted the benefits of a night out at the theatre.
From printed season flyers to the website and email blasts, the Grand used a variation of GET in all communications for maximum visibility. A key use was organic display ads to consistently reach the Grand’s audience where they spend time online. The results speak for themselves. Since launch, 25% of total users, 27% of new users, and 18% of all sessions to the Grand’s website have been driven by referral traffic from GET campaign ads. That kind of steady exposure is building awareness, and that translates into meaningful engagement and growth. The GET campaign shows that a thoughtful, sustained digital branding effort is a powerful way to keep a brand visible and thriving.
The Takeaway: Branding Is a Long-Term Investment
This story echoes decades of research: businesses that stay visible during hard times recover faster and capture more market share once consumers start spending again.
When budgets tighten, slashing brand spending can feel like the right option—but it’s usually the wrong one. Branding is the foundation of trust and the reason customers choose your business. No matter your size or budget, setting aside 15–20 percent for branding is a smart move, and can be the difference between surviving and thriving in any market.