Eric Siu explains why recessions benefit smart marketers. When companies cut ad budgets, advertising costs plummet, letting you negotiate cheaper long-term deals and acquire customers at lower prices. Hold cash and stay ready to scale fast when the market recovers.
Here's how a recession is actually a good thing for marketers. So what happens during recessions is that marketing is usually the first type of expense to get cut because it's easier to cut that than to fire people. But that can actually be a mistake. So number one, the first thing is when people are dialing back, that's a chance for you to dial it up because the costs are getting cheaper. The advertising costs are getting cheaper. Better yet, you can negotiate and lock in these deals for maybe a couple years or so with these advertisers. And what happens is you're gonna get a good deal for a long time. You're gonna acquire more customers. for cheaper, and well, you're going to be able to win for the long term. So what's important is that you are holding cash right now in reserves, and you are going to be greedy when others are fearful. So the same type of investment advice that comes from Warren Buffett— be greedy when others are fearful— that time is not quite here yet, but when the time is here, be ready to pounce. So
