Even though the economy has been of major concern over the past 2-3 years, marketing spend has been mostly stable over the past year, according to data from Gartner. But enacting and following a contingency plan has been less consistent.
According to the Gartner survey from late 2022 (November and December), 95% of respondents said their marketing spend had been stable or increased during the latest economic disruption, with only 5% reporting a decreased marketing spend. Organizations that increased spending were twice as likely to increase profits.
As to contingency plans, while 81% of survey respondents said they have a disruption contingency plan, only 21% said they followed their plan. But those marketers who increased spending as a part of their contingency plan were more than two times more likely to see profit growth year over year than those who either decreased spending or made no change in spending.
Things marketers should keep in mind in light of economic uncertainty:
- Economic messaging is not always clear-cut.
- Expected economic downturns may not turn out to be as bad as expected.
- Silicon Valley Bank’s collapse may have more of an impact on the economy than originally thought.
For these reasons and more, having a contingency plan is more important than ever. And it’s also important to follow through with the plan when disruption occurs.