When trading conditions get tough, the instinct is often to cut sales and marketing first.
But this is not the time for organisations to disappear and give prospective customers a reason to choose a competitor.
We have seen this play out in New Zealand, where trading conditions have been difficult for a number of years. Australia isn’t currently in a technical recession, but forecasts do point to a period of below-trend growth with the Reserve Bank of Australia expecting growth to slow over 2026 before gradually recovering, and Deloitte Access Economics forecast modest growth of 1.3% for 2026–27.
In response to the slowdown, I’m seeing a lot of generic, low-effort digital activity, including AI-generated websites and content that have not had enough care, judgement or commercial thinking applied to them. That is especially risky in a tougher economy.
In a stronger market, a mediocre digital presence may be survivable. But generic copy, unclear offerings, inaccurate information and poorly considered customer journeys are unlikely to create confidence in a cautious buyer. When people are cautious, they scrutinise more. They research their options and they take longer to decide.
Your customers are gold. Show them that you care and make sure they know that you value and respect their time, attention and hard-earned cash.
They will notice if you haven’t put much effort into your website. They will notice if you look and sound the same as everyone else. If there is no clear answer to what you do, why you are different, or why they should trust you, they will likely chose someone else.
We started Mogul in 2007, just as the GFC began. Over nearly two decades, we have worked with organisations through the pandemic, economic uncertainty, disruption, changing customer behaviour and some very difficult trading conditions in New Zealand. We have watched clients make difficult calls about cash, investment, growth, staffing, customer retention and what work genuinely deserves investment.
Our experience is consistent with the PIMS database analysis cited by the Australian Association of National Advertisers. It found that brands which maintained advertising investment through a recession also maintained market share in the first two years of recovery, while brands that cut spending saw their share shrink.
We have a practical perspective on what organisations need from their marketing and digital investment when money is tight:
- Protect the investment that keeps the business known, trusted and accessible to customers.
- Shift spending away from wasteful or unmeasured activity.
- Fix the parts of the customer journey that are losing enquiries, sales or confidence.
- Keep communicating when competitors go quiet.
- Use the quieter market to improve the foundations that will matter when demand returns.
We can’t say that activity guarantees survival, or that there is a simple answer for every business, but we do know that businesses need to make considered decisions about the investment that keeps them visible, credible and close to customers.
It also doesn’t necessarily mean ramping up spending, bigger ad budgets or a new glossy website, but it does mean that businesses should protect the parts of their commercial presence that allow customers to find them, understand them, trust them and buy from them. That includes sales pathways, customer communication, website quality, search visibility, content, reputation and the customer journey.
This is exactly where Mogul adds value. We understand how a website and digital presence are an essential part of a business’s toolkit for survival in a downturn and recovery in better times. We know the difference between digital activity that looks busy and work that genuinely supports a business. We help organisations make sure their digital presence earns its place in their annual budget.
