By Matt Davies, Strategy Director of The Tokens.

During any downturn or market tightening, often one of the first areas to be cut in a business is marketing. It’s seen as an expendable luxury that can only be justified when balance sheets are looking healthy. But in an emerging industry, perception is just as important as the technology, and there’s no better time to BUIDL brand awareness and comprehension than now.

This isn’t the first cyclic downturn we’ve experienced in crypto and it’s definitely not the last, but it is different to previous bear markets. It’s different not only because of its length, but because the market is now more mature, with greater investment and consideration given to marketing and communications. A time when there are actually marketing budgets to cut — where none previously existed — and the survival stakes are much higher.

While it might be the tendency during tough times for the general population to bunker-down, reduce their consumption and investment, it’s counterintuitive for companies to do so. There is a lesson we can learn from traditional markets and most recently the global recession of 2009.

“The list of famous companies founded during economic downturns is long and varied. It includes General Motors, AT&T, Microsoft and Apple, all founded during recessions. Over half of Fortune 500 companies got their start during a downturn or a bear market.”

Downturn, Start-up, The Economist, 2012

One of the reasons these companies established a foothold was because the time was ripe for disruption, but the other reason is that a bear market provides an opportunity to bolster market share by spending on marketing at a time when other companies are cutting back. It means more airtime for your brand and a cost-effective way to build awareness and recognition. Of course, the tactics need to change in a downturn, but the knee-jerk reaction to cut budgets blindly is a short-term view.

“During downturns, marketers must balance efforts to pare costs and shore up short-term sales against investments in long-term brand health.”

How to Market in a Downturn, Harvard Business Review, 2009

How much to invest during a downturn is case-dependent but The IPA (the largest global database of effective communications) and Nielsen Market Research outlined a method for assessment based on the analysis of over 120 cases that is well worth a read.

“The critical metric that determines the level of a brand’s market share growth is its excess share of voice (ESOV), defined as share of voice (SOV) minus share of market (SOM).”

How Share of Voice Wins Market Share: New Findings from Nielsen and The IPA Databank, The IPA, 2009

Whilst there are other factors — like how well you know your customers’ changing mindset and how creatively interesting your communications are — now is the time to stand up to the CFO’s pencil sharpening.