Cutting Ad Spend in 2025 Could Stunt Brand Growth Until 2030

As economic instability defines the first days of 2025’s second quarter, brands and marketers are likely weighing where to potentially make budget cuts. Yet for those considering pulling back on advertising, history shows that would be a mistake.

Cumulus Media Chief Insights Officer Pierre Bouvard has outlined research-driven strategies for maintaining brand strength during financial downturns from studies by Kantar, the Ehrenberg-Bass Institute, and WARC, among others.

Historical data shows that maintaining a higher share of voice than share of market is a key predictor of brand growth. Reducing advertising spend during economic uncertainty can have exponential consequences, with some brands taking up to five years to recover after going dark, according to WARC and Millward Brown studies.

Rather than cutting budgets, the studies suggest that advertisers would be best suited to shifting marketing strategies toward brand-building efforts that create future demand. This approach targets consumers who are not currently in-market but will be in the future, fostering brand familiarity and emotional connection over time. Advertising tactics focused purely on sales activation, while effective in the short term, do not sustain growth and are likened to “sugar highs” that quickly crash once campaigns end.

The research highlights that emotional campaigns evoking happiness, empathy, surprise, or humor outperform rational messaging across virtually every brand health metric, from awareness to loyalty. Emotional messaging also delivers stronger business outcomes, including higher market share, pricing power, and customer trust.

AM/FM radio offers a particular value in a budget-constrained environment. Studies using Nielsen Media Impact show that reallocating 20% of a TV budget to AM/FM can significantly lift campaign reach, even when overall budgets are reduced. Radio’s broad reach and cost efficiency make it a critical part of maximizing media impact without inflating spend.

Maintaining a strong relationship with loyal customers is another pillar of Bouvard’s strategy. Direct communication through trusted channels, including billing statements and personalized offers, can keep customers engaged even when spending habits change.