Economic uncertainty has become a familiar challenge for businesses across Northern Utah and Southern Idaho. Inflation, changing consumer behavior and ongoing questions about the economy continue to make business owners think carefully about every dollar they spend.
Yet new research suggests one investment isn’t disappearing from most budgets: marketing.
According to new research from Borrell Associates, the overwhelming majority of small and medium-sized businesses (SMBs) are choosing to maintain—or even increase—their advertising budgets despite growing concerns about the economy. Those findings reinforce an important lesson that many successful businesses have learned over the past several years: visibility matters, especially when times are uncertain.
Most Businesses Aren’t Cutting Marketing
Borrell Associates’ latest Business Barometer surveyed 149 small and medium-sized businesses between June 9 and June 26 and found:
- 62% expect to spend about the same on advertising during the next six months.
- 15% plan to increase advertising spending.
- Combined, 77% expect to maintain or increase their marketing investment.
As Borrell notes in its report:
“The proportions expecting to spend more or spend less on ad budgets has not shown major fluctuations over the past two years.”
That’s significant because business confidence has declined during the same period.
Nearly one-third (31%) of respondents now describe the environment for sustaining a small business as “poor,” up from 21% just one quarter earlier. More than one-third (37%) expect economic conditions to worsen over the next six months.
Yet their advertising plans have remained remarkably consistent.
Why Businesses Keep Investing
Borrell Executive Vice President Corey Elliott offered perhaps the most insightful explanation for the survey results.
“Some of them have learned that cutting marketing is a lousy way to save money.”
That simple observation reflects years of experience.
Businesses often look at marketing as an expense during difficult periods, but many discover that disappearing from the marketplace allows competitors to capture customers and mindshare that can be difficult to win back.
Elliott also offered another memorable perspective:
“The businesses that went dark to save money back in the day tended to lose ground they never got back.”
Rather than signaling optimism, he believes many business owners are simply applying lessons learned from previous downturns.
As Elliott concluded:
“So call it resilience, not a rebound. They’re not fleeing—they’re bracing.”
What This Means for Local Businesses
For businesses throughout Cache Valley, Logan, Northern Utah and Southern Idaho, these findings offer an important reminder.
When consumers become more selective with their spending, staying visible becomes even more important.
Customers can’t choose your business if they don’t think about your business.
That doesn’t necessarily mean dramatically increasing your marketing budget. It means investing strategically in channels that consistently reach local consumers where they already spend their time.
Radio continues to deliver trusted local personalities, community news, sports and entertainment throughout the day. At the same time, digital advertising, streaming audio, connected TV, social media and local online news help businesses reinforce those messages across multiple platforms.
The strongest campaigns combine these channels to build familiarity before customers need your products or services—a principle that consistently appears in marketing research from organizations like Borrell Associates, Nielsen, Audacy and the Association of National Advertisers.
Build Consistency, Not Just Campaigns
One of the biggest takeaways from Borrell’s research is that successful businesses aren’t treating marketing as something they turn on and off based on headlines.
They’re staying consistent.
Consistency builds familiarity.
Familiarity builds trust.
And trust often determines which business customers choose when they’re ready to buy.
Even in uncertain economic conditions, maintaining a steady marketing presence helps businesses remain top-of-mind while competitors may be pulling back.
The Bottom Line
The latest research from Borrell Associates shows that most small businesses understand an important reality: cutting marketing rarely solves long-term business challenges.
Instead, the businesses that continue investing in smart, targeted marketing are often the ones best positioned to grow when economic conditions improve.
If you’re looking for ways to reach customers throughout Cache Valley, Logan, Northern Utah and Southern Idaho, Cache Valley Media Group can help you build an integrated marketing strategy using trusted local radio personalities, Cache Valley Daily, streaming audio, digital display advertising, connected TV and social media solutions.
Contact one of our marketing consultants to learn how a consistent, locally focused marketing strategy can help your business remain visible—no matter what the economy brings.
