The dangers of going dark in marketing
Going dark in your marketing to pinch pennies can backfire, often causing more harm than good.
When companies see a downturn in revenue or profits (or both!) one of the first things they’ll look to do is cut unnecessary spending.
And usually, one of the first expenses deemed “unnecessary” is marketing or advertising budgets.
In almost 30 years of business, at Prime Creative Media we’ve seen our share of uncertain market conditions, from the Global Financial Crisis in 2008 to COVID in 2021-22.
Through these events, we’ve observed the different approaches companies take with their marketing in a time of crisis – and we’ve gained a unique perspective on just how “unnecessary” marketing spending can be.
Let’s look at how these strategies have fared over time.
Strategy 1: going dark
The retreat position is a natural first instinct in times of uncertainty. Just as no person would want to put themselves in danger, the first instinct for any company is to cut all possible costs, bunker down, and wait for the crisis to pass.
It’s a natural feeling to want to decrease your marketing spend and hold onto all cash possible. This is known in the marketing world as “going dark”.
Several studies have shown the dire consequences on a brand for choosing to go dark. At a time when the market is looking for guidance, brands that go dark are like fair weather friends, disappearing when they’re needed the most.
Importantly, when times get better, regaining brand awareness after a dark period can take years to happen – if at all.
Going dark also sends a message to industry that times for your business are tough, reinforcing an economic downturn and reflecting negatively on your business.
Strategy 2: defend and advance
History favours the brave, and the same is true for companies who make bold moves during times of crisis.
A frequently-cited1980s study by McGraw-Hill of 600 B2B companies found that those who increased or maintained advertising spend during the 1981-1982 recession saw higher sales growth throughout that downturn and afterwards.
By 1985, companies that kept up their advertising increased their sales by 256 per cent over companies that cut advertising.
An IPA report that looked at the 2008 downturn confirmed that brands need to maintain share of voice at or above share of market during a crisis.
It’s like dressing for work – advertise for the position you want, not the position you have.
Strategies in action
In 2008 and 2020, at Prime Creative Media we saw that the businesses that chose to advance their market position were in the strongest position to bounce back when economic conditions improved.
In particular, market leaders who increased their marketing spend to defend their position, and challenger brands who paid for more coverage to take advantage of other brands going dark, were those that best rode out economic downturns.
In the B2B sector, where we’re often dealing with the critical infrastructure and services that are more protected from broader economic shocks, maintaining a strong market position is vital.
Playing it safe or playing with fire?
History has proven that the “go dark” mindset is fraught with danger. Marketing is a critical investment, not an “unnecessary” short-term cost, and the consequences of the retreat position far outweigh the immediate savings.
In economic downturns, companies absolutely need to save on costs. However, this is best done by improving operational efficiencies and making sustainable cuts that can help with long-term profitability.
Companies that fight for their position by maintaining or increasing their marketing presence when times are tough are the ones that set themselves up to succeed on the other side.