3 ways to handle your comms budget during an economic slowdown

With the volatility and uncertainty that has hampered the global economy through the first half of the year likely to continue, at least until interest rate hikes and inflation stabilize, businesses are looking to preserve cash by lowering burn.

During my tenure as president of DKC, I have counseled a wide range of corporations and senior executives on how to communicate during periods of economic uncertainty while simultaneously leading our own business through the accompanying rough air.  Over the years, I have found corporate treatment of marketing and communications budgets follow a fairly standard two-part cycle during an economic downturn.

In the first part, companies carefully evaluate their budgets to ensure they can weather the uncertainties. This typically leads to cost cutting early on. The most aggressive cost saving measures often come at the beginning or middle of the first quarter of economic softness. As “dry powder,” “more with less,” “clawback” and other ditties from the Glossary of Recession-Speak work their way into operational vernacular, marketing and customer research expenses are typically among the first up on the chopping block.

Big mistake.