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Why Marketing budgets shouldn’t be one of your cuts in 2013


When companies need to make important budget cuts, many of them look at marketing as an area to reduce their spending. Many decisions to cut marketing are based on rationale that is flawed such as: “I can maintain my clients or customers I have now”. Or worse yet, marketing budgets are looked as a luxury expense and the logic is “If I have some really profitable months I’ll spend more in marketing later.”

Other logic might suggest that the competition has cut their budgets, so it’s safe for you to do the same. Wrong … in slower economies one of the best ways to gain market share over the competition is by not cutting advertising budgets, defining a clear strategy for the dollar amounts and staying true to your plan. A case can be made for actually increasing marketing budgets in a down economy. An example of this is Proctor and Gamble. During the depression P&G showed incredible resolve and gained market share over competitors, even increasing marketing budgets when others cut back.

Spending more in a down market allows for companies to even push the envelope in emerging advertising technologies and leverage deeper advertising buys when inventory is much more available from media companies.

Let us not forget, I mostly have discussed not cutting marketing budgets or even increasing them. However it is not without strategy. At our firm AMI Advertising Agency ( we are heavily focused on strategy first. We develop marketing strategies and provide quality market research with systems in place to back it up. By having good metrics in place we can monitor marketing campaigns while assessing each dollar spent.

Marketing budgets should never be considered a negative budget item, prime for the chopping block. In actuality it is fuel to help companies achieve business goals. So if the conversation in the boardroom comes up about cutting the marketing and advertising budgets ask yourself, would you cut off your own head and still be successful?

If you’re looking for strategic planning, with award winning creative contact AMI Advertising Agency.

Jeff Wright Partner, Creative Director

AMI Advertising Agency


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