In a season of slashed marketing budgets and tightened corporate belts, many brands are grappling with the dilemma of staying top-of-mind with fewer resources. But a shrinking wallet does not have to mean shrinking visibility.

From recalibrating media strategies to doubling down on performance-driven channels, marketing professionals are rethinking how to do more with less, without losing consumer attention.

As Nigeria grapples with soaring inflation and dwindling currency value, seasoned marketing professionals are voicing concern over a trend they say could cripple long-term brand growth, budget cuts to marketing and brand-building efforts.

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In a series of expert analyses compiled from MARKETING EDGE and exclusive industry reflections, leading voices in integrated marketing and communications have urged brands and executives to resist the knee-jerk impulse to slash advertising and marketing budgets in the face of economic headwinds.

With many of these professionals boasting extensive experience across various markets and sectors, their unified message is clear: strategic innovation and investment, should lead the way.Ultimately, the experts agree that, despite the pressures of budget cuts, the need for strategic investment in marketing remains paramount

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Across sectors, budget cuts are becoming a familiar line item as businesses confront inflationary pressures, currency volatility, and a slowdown in consumer spending. In Nigeria and other emerging markets, where media inflation is rising faster than general inflation, marketers face a new imperative: remain relevant without overspending.

Ronan Redmond, former Commercial Director/Chief Revenue Officer of TV Communications, shared his perspective on the role of Chief Marketing Officers (CMOs) during financial crises. He stressed the importance of CMOs becoming bolder and more strategic when budgets are cut.
Reflecting on the COVID-19 period and its aftermath, Redmond noted that businesses often make the mistake of slashing marketing budgets in tough times, which can be detrimental to long-term growth.

He emphasized that companies that continue to advertise during a recession are the ones that emerge stronger. “We need strong CMOs to fight for marketing budgets at the executive table,” Redmond advised, pointing out that businesses cannot afford to take the easy route of cost-cutting.

Redmond also discussed the shift in media consumption and brand advertising, urging media owners to innovate beyond traditional spot advertising. He believes brands now seek more integrated, creative advertising solutions, such as product placements, branded content, and guest appearances, rather than relying solely on standard ad spots.

For Nigerian marketers, economic headwinds are already reshaping campaign planning. Akinola Afere, Director, Client Services, Kantar (Insights Division), stressed that economic pressure in Nigeria is forcing marketing budgets to contract, but this should signal the need for smarter, not smaller, investments. “

Due to the economic flux in Nigeria, revenues, and by extension, campaign budgets are shrinking. IMC service providers will need to deploy innovation and creativity at an even higher level to bridge the gap.”

Afere, who has worked with multiple global brands through Kantar’s insights-led advisory, pointed out that AI adoption will shape next year’s strategy for many businesses. Yet he insists the true differentiator will lie in creative excellence.

Referring to a study on advertising profitability, he said, “Creative quality ranked second only to brand size. Creative campaigns are four times more profitable. Brand owners will demand more value, and radical innovation will be the bridge.” He also cited that a striking 91% of CMOs globally now believe brands must be braver in communicating their messages, especially in times of crisis.

Buki Osunkeye, a tech executive and growth marketing strategist, added further context to this pressure, attributing it to macroeconomic instability and the devaluation of the naira. She warned that marketers must resist internal pressures to scale back their reach.

“This is not the time to be cutting marketing budgets at all,” she said firmly. “This is the time to think of how much more value you can get from the same budget.”

In her view, marketing teams need to become more specialized to navigate digital transformation successfully. “We now see marketing teams where each person specializes in a specific platform TikTok, Instagram, LinkedIn. You can no longer be a generalist.”

On the topic of performance versus brand marketing, her advice was nuanced. “There is no ‘best’ approach,” she said. “You split your budget, some for reinforcing brand identity and some for immediate growth. It depends on your business model. If you’re a tech startup, you’ll probably lean more on performance, but brand building cannot be sidelined.”

Olawale Sanusi, CEO of Light Inc., also shed light on the challenges of ad spend in Nigeria. He pointed out that the country’s unstable economy, marked by inflation and currency devaluation, directly impacts consumer purchasing power.

He added that this leads to a reduction in marketing budgets. He believes that if Nigeria’s economy stabilizes, advertising spend will also stabilize and eventually grow “As prices rise, Nigerian consumers are forced to scale back on purchases, which in turn affects the profitability of businesses. Producers are no longer making the same profits they used to.”

Michael Beebe, CEO of Dstillery, offered a more reflective take, urging innovation leaders not to resist the budget pressures but to rethink their value strategy. “Rather than lament the inevitable, innovation leaders should consider how they might use the crisis to create more value and establish the legitimacy of innovation going forward,” he stated in Digiday’s 2024 outlook report.

Beebe’s insight supports the notion that economic constraints, while painful, can serve as a crucible for reinvention, and while noting that the constraints of the current situation provide an opportunity to be more strategic with our innovation efforts.

The common thread among these thought leaders is that budget cuts, though tempting in times of uncertainty, can have long-term negative effects on brand equity, consumer loyalty, and organizational growth.

More than ever, they say, brands must defend their budgets not out of habit, but with data-driven arguments, performance metrics, and a clear roadmap for ROI.

They asserted that as the year looms, the challenge before Nigerian marketers is not just about spending smarter, but also standing firm, learning faster, and building brands that endure.

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