When the going gets tough, the tough do marketing. Gone were the days when marketing budgets were “the first thing to go” when times became hard.

With the COVID-19 pandemic on the rampage and more people preferring to shop online, eCommerce retail sales in the 2nd quarter of 2020 accounted for 16% of all retail sales in the US alone. As a result, top marketplaces and social media platforms have also increased their total Ad spend to $3 billion.

This in spite of the recession that’s gripping the country. The decline in employment and production should have deterred these industry leaders just like in past recessions, but instead, they’re relying on digital marketing more than ever. It’s official, folks! Marketing is now recession-proof, at least in our current situation.

The Big Difference

According to the National Bureau of Economic Research, this pandemic-driven recession is unlike other economic downturns in history. The factors leading up to the economic slowdown we’re experiencing today are entirely different from previous economic downshifts, and thus, could lead to a different result.

In previous recessions, the reasons for the economic downshift were financial — monetary policy, oil prices, issues with the stock market, or a specific sector in the economy. The Great Recession in 2007 was caused by a subprime mortgage crisis, as well as lax lending standards, which led to the crash of the mortgage industry.

The current recession was a direct result of a public health crisis. The unemployment figures are still up, but online retail sales have noticeably soared. People prefer to do their shopping online because of the scare that COVID-19 has stirred up in people. More sales mean companies need more money to market their wares. It’s that simple.

It’s the Small Guys That Suffer

It’s easy to keep putting in money in marketing when there’s money to spend, like what the big companies are doing, but what about the small players?

Running a business is a daunting task, especially if you’re running it by yourself. The US Bureau of Labor and Statistics says that 20% of these small enterprises never make it to their first anniversary, and roughly half close their doors in half a decade. The smallest businesses — those with fewer than five employees — are hit the hardest.

For these microenterprises, the marketing budget is the first thing they consider cutting because it doesn’t directly affect the operations of the business. The misconception is, if the company continues operating, customers will come and buy.

That might have been true for brick-and-mortar stores, where walk-in customers can still come in and buy something. In eCommerce, it’s the “Kiss of Death.”

Survival of the Fittest

Either you control the business, or the business controls you. Here are some of the predators and prey of the business scene.

The Predators

Amazon, the largest eCommerce platform in the world, boasts a 1.9 million-strong seller list. You’d think that in these uncertain times, Amazon would try to keep their head down and try to ride out the storm, but that isn’t the case. The retail giant is getting more competitive than ever.

As a result, Amazon brought in $125.6 billion in sales revenue in 2020, and it’s projected to be even better in 2021. Jeff Bezos knows that the time to get on the train is when everybody else is getting off.

National Parks Depot is now a major eCommerce presence that sells outdoor equipment and gear. Its founder, Robert Nava, started by spending his last $60 on a Facebook ad promoting his products.

He didn’t really expect his investment to pay off, but to his surprise, that modest ad got him $1000 in sales just for the first day. He then doubled his ad budget on the next day, and his sales double as well. The rest, as we say, is history.

Bonobos is an online apparel store that exemplifies what good marketing can really do. The founder, Andy Dunn, wanted to ramp up sales, so he offered up to 60% off for his products and fired off newsletters to prospective clients.

The increased traffic was more than even he was expecting, and this led to his company skyrocketing. Game, set, match for Andy!

The Prey

Morrison’s Irish Pub, a small business in Illinois, was struggling to pay off loans. As a result, the owner took the marketing budget of $300 to pay off a loan.

That move temporarily solved that problem, but the business failed to attract new customers to ensure its sustainability — an area marketing could’ve helped it with. It eventually closed down.

El Mercado, a Mexican grocery in Arkansas, didn’t spend a dime on marketing. The owners, Jose and Catrina Mendoza, relied on word-of-mouth to market their business. This was a problem for them when they decided to expand beyond their customer base. I mean, word-of-mouth might be the best kind of advertising because it’s free, but it can only get you so far.

In the digital age, having a website and promoting products online will get you a far bigger potential client list than any kind of advertising.

Keep Things Moving

It’s not just marketing budgets that are at stake here. There are also some areas indirectly affecting a business’s marketing efforts that are affected too.

For many companies, the second thing they do away with is their Innovation Budget. Nothing kills a business more surely than standing still. If your products have nothing new to offer, competitors will wait while you whither and die while they scoop up your customers in the process.

Nokia is a prime example of a company that never thought about innovation and failed to keep up with its competitors. Now, they’re struggling to even remain visible in the smartphone industry.

Marketing, Like Customers, Should Always Come First

It’s admirable when business owners try to think of keeping their operations alive, but what gets lost in translation is the importance of having customers keep it alive. It doesn’t matter what product or service you’re selling if nobody knows about them.

In fact, as businesses lean towards becoming more visible online, marketing is fast becoming indispensable. The people (more specifically, Benjamin Franklin) have spoken! Marketing is now recession-proof!

Want to up your marketing game? Read ”25 Marketing Automation Examples for Modern Businesses” to learn more.