- Many studies show that companies that continue with the same or increased marketing budgets come out of the economic crisis as winners - Increasing the marketing budget provides an opportunity to increase their market share and maintain this level even after the recovery - A Max 20% increase in the marketing budget can increase market share by 0.5%. A marketing budget increase of more than 20% can increase market share by 0.9% LONGER-TERM IMPACT OF A BUDGET CUT A company that reduces its marketing investment by 50% during a crisis can take up to two years to regain its share of market (SOM) in the local market. On the other hand, companies that increase their visibility in the market during the crisis can triple the SOM of their products or services in the first 2 years after the recovery. Cutting back on advertising saves money in the short term, but will continue to have a negative impact on sales for a long time. It will also make it more difficult to regain market position. After the first year, cutting budgets will continue to impact sales for the next 2-5 years. Examples of companies that have chosen to maintain or increase visibility:*The best marketers will be upping, not cutting their budgets.* Mark Ritson, 2020 A SPECIAL TIME OFFERS NEW OPPORTUNITIES This is a time for companies to maintain or even increase market share. The important thing to know is that overall marketing is falling, which in turn will reduce the advertising noise. This, in turn, will make sustained advertising even more effective. Competitors are cutting budgets - let's hope you don't! Sources. How to win during and after a recession David Dixon, Sebastian Shapiro and Nicole; Vizard. S, 2020. marketing week