The three biggest lies about marketing

Recent headlines don’t make for pleasant reading,  with the socioeconomic landscape illuminating so many uncertainties. In turbulent times true leaders emerge, adapting and innovating to navigate the uncertainty.

This reality extends to the business world, particularly marketing. During economic downturns businesses often resort to cutting expenses, with marketing budgets frequently the first on the chopping block. In 2024 global marketing budgets experienced a significant contraction. According to Gartner's Annual CMO Spend Survey marketing budgets dropped to 7.7% of overall company revenue, marking a 15% decrease from previous years.

In South Africa, economic challenges mirror global trends, with retailers closing stores, vehicle sales declining and businesses — both large and small — implementing layoffs. Despite a slight dip in interest rates, consumer confidence remains weak and companies are still tightening budgets. The economy grew by just 0.6% in 2024, down from 0.7% in 2023, prompting many businesses to cut back on marketing and advertising. While specific local figures are scarce, the prevailing trend suggests a widespread reduction in marketing investments, influenced by both global economic pressures and local uncertainty.

The biggest marketing myth is that cutting marketing spend saves money. 

Contrary to popular belief, reducing marketing expenditure during tough times can hinder growth. A study by the Ehrenberg-Bass Institute for Marketing Science found that brands that reduce their advertising spend by 50% during a recession take three to five years to recover their market share, if they ever do. Meanwhile, those that maintain or increase their marketing investment in that time recover faster and come out stronger.

During the 2008 recession, companies that continued to invest in marketing spend achieved a healthy 17% compound annual growth rate. They focused on cost containment while shifting spend to tactics for high return on investment.

In South Africa, digital advertising has shown resilience. The IAB South Africa internet advertising revenue report indicates a 21.5% growth in digital ad spend in 2023, with revenue increasing from R14.5bn in 2022 to R17.7bn.

This growth suggests that businesses that increase their marketing investments are better positioned to capture market share even during economic downturns.

The second marketing myth is that marketing should deliver immediate sales. But marketing isn’t a quick fix; it’s a long-term strategic discipline. Brands that rely only on short-term sales activations (discounts, promotions, flash sales), may see temporary boosts but often burn through cash and fail to build lasting relationships with customers. Meanwhile, brands that play the long game (investing in consistent brand-building activities such as storytelling, brand positioning and consistent engagement) tend to achieve better long-term results, and win customer loyalty.

It’s always a good idea to refer back to those brands that really get marketing. Consider, for example that Nike doesn’t sell shoes, it sells identity. Coca-Cola doesn’t sell beverages, it sells happiness. Nando’s doesn’t sell chicken, it sells attitude.

Their dominance was not built overnight; it was strategically crafted over decades with consistent marketing investment. Their campaigns don’t scream “buy now”, but instead shape culture, emotion and connection, making purchase decisions almost subconscious.

The third big myth is the idea that “if it worked for them, it’ll work for us”. Many companies look at their competitors and think “let’s just do what they’re doing.” Copy-paste marketing rarely works, because context matters. That a campaign, channel or tactic worked for one brand does not mean it will work for yours. Marketing success depends on understanding a brand’s unique strengths, audience and positioning.

Virgin and Tesla thrive on bold, unconventional marketing. Remember when Tesla raced a Porsche while towing another Porsche? That worked for it because it matched their brand’s personality: provocative, daring and unpredictable. Would that same stunt work for BMW or Mercedes? Unlikely.

This demonstrates that a tailored, context-specific marketing strategy is more effective than a one-size-fits-all approach.

If there is no universal formula for marketing success, what should brands do? Critically, they should follow the principles, not a playbook.

1. Invest in marketing consistently

Maintain or increase marketing spend, especially during downturns. History shows a sustained marketing investment results in a stronger post-recession performance.

2. Think long-term

Focus on building brand equity and customer relationships rather than seeking immediate sales boosts.

3. Innovate and experiment

Don’t just copy competitors. Develop strategies tailored to your brand’s unique context. Test new approaches, be bold, learn from failures and capitalise on successes.

There’s no magic formula for success, but there are fundamentals that never change. The brands that get this don’t just survive, they dominate. In uncertain times, marketing isn’t a luxury, it’s a critical investment. The question isn’t whether you can afford to invest, but whether you can afford not to.

Jody Daniels is strategy planning director for Mortimer Harvey and Rapt Creative.

The big take-out: In uncertain times marketing isn't a luxury — it’s a critical investment.

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