Marketing in a downturn: How brands can stay relevant in a tough economy
When the economy takes a hit, businesses start to implement cost-cutting measures, and marketing is one of the first budget lines to get hit. During recessions, consumer confidence falls, tightening up wallets. Maintaining visibility and trust is now harder than ever. With the increasing cost of living in South Africa, affecting families in seemingly all income groups, marketers have little time to manoeuvre with agility while maintaining relevance. Here’s how.
Where previous generations responded to aspirational imagery and celebrity endorsements, Gen Z seeks authenticity. They were raised with unfiltered content through TikTok, Snapchat, and YouTube, and their radar for inauthenticity is polished. Overly produced campaigns with A-list endorsements might not work much for them. Instead, they want brands to reflect their views and to be a constant presence for them in an informal and casual way.
Such a shift meaningfully affects marketers, particularly in Africa, where youngsters are maturing within a distinctively connected, socially aware, and enterprising society. African Gen Z consumers are not just users in the digital world; they are creators. They use platforms to tell their own stories, challenge norms, and promote social causes. A brand that fails to recognise this active participation risks becoming irrelevant.
The decline in traditional influencer culture is one palpable shift in this landscape. Influencers still hold some influence, but Generation Z is more likely to put its trust in micro-influencers. Micro-influencers are those content creators with smaller yet more engaged followings and who are seen as authentic rather than aspirational. These creators often reveal behind-the-scenes moments, vulnerabilities, or a real perspective that really resonates with people. In South Africa, Nigeria, and Kenya, local creators with a genuine grassroots appeal are already building powerful communities that brands have begun to pay attention to.
1. Don’t go dark: Stay present
With difficult times, one may consider cutting marketing costs or simply shutting up shop. However, history has proved that brands that continue with their marketing during a downturn emerge stronger. Being visible brings reassurance to the client that you are stable, dependable, and continuing to serve their needs. Even if the pace of the sale slows down, brand recall, as well as brand trust, will become critical in pursuing growth opportunities in the near future. Smart marketers shift focus from aggressive selling to brand-building and reassurance.
2. Adjust your message, not just your budget
Economic stress changes consumer priorities. Cost-consciousness develops in consumers who tend to become almost risk-averse in their buying decisions. The messaging has to show empathy and understanding of where the consumer is currently at. Emphasise the value proposition how the brand makes life easier for people, saves them money, and provides comfort along the way. Stress value, dependability, and practical usage and keep away from concepts of delight and exclusivity.
3. Double down on customer relationships
During the lean periods, loyalty acts as a lifeline. Brands that give importance to customer retention over acquisition tend to survive better when weathering storms. Investment in loyalty programmes, personalised communications, and after-sale support is recommended. Social media and CRM tools are also a way to nurture these relationships by giving value to complainants and customers, listening to their gripes, and engaging.
4. Leverage local insights
A one-size-fits-all method will never work in the diversified South African economy. Marketers must employ local data and behavioural insights to craft campaigns, as regional variations in economic pressure exist. A classic example might be that price messaging or product bundling can have widely different reactions from urban and rural audiences. Keep your strategy anchored in real-time consumer behaviour to stay relevant across segments.
5. Be agile, not reactive
A tough economy necessitates fast moving decisions, but not blind decisions. Brands that ignore the customer feedback, avoid experimenting with new digital channels and formats will be less prepared to pivot when circumstances improve. Test low-cost content strategies such as user-generated content, live videos, and community engagement to hit the mark without splurging.
6. Embrace purpose-led marketing
Consumers usually embrace the brands that stand for something. Aligning your brand with an actual cause will build an emotional connection. In a country like South Africa, rife with economic inequality, purpose-led marketing can be a silver bullet.
Upskill to stay ahead
Continuous learning becomes a key advantage. The IMM Institute’s short course, Managing Brands Over Time, is designed to help marketers understand how globalisation and the rapid growth of e-commerce are reshaping brand dynamics. As more consumers shop across borders, smaller brands face new pressures to grow and protect their brand equity. This course provides valuable insights into how brands can stay relevant, resilient, and competitive, especially during economic downturns. Whether you’re managing a legacy brand or building one from scratch, strategic brand stewardship is more essential than ever.
Final thought
Downturns are undeniably challenging, but they’re also moments of recalibration and reinvention. For South African marketers, the focus should shift from pushing products to fostering trust, relevance, and resilience.
Let tough times inspire smart moves. Stay visible. Stay human. Stay relevant.
