Why a recession is the worst time to skimp on brand marketing

The opinions expressed by entrepreneurs contributors are their own.

Stocks fall, tech growth stalls and bubbles burst. If you haven't already felt it, you are preparing for impact. When markets begin to change, businesses are forced to quickly pivot and adapt to minimize the fallout. In technology, this means budget cuts, mass layoffs, and hiring freezes.

There is no denying that some of these reactions are justified, albeit unfortunate. A decade-plus economic boom has given way to inflated growth trajectories, overvalued startups, and unprecedented hiring. But the wake of victims left behind as a result offers a rare glimpse behind the curtain. When the going gets tough, how do priorities change? Who or what is the first to arrive on the block? Are these cuts in line with the company's stated goals and vision, or are they just a band-aid to assuage the fears of anxious investors?

Related: 4 Simple Techniques to Successfully Brand Your Business During a Crisis

A long-term mindset reaps long-term rewards

In 1997, the initial public offering of was launched at a price of 18 USD per share. Two years later, the company's valuation soared to more than 50 times its IPO value. Then the dotcom bubble burst and a stock that once topped $100 fell to under $10. It wasn't until late 2001 that Amazon began returning a profit to investors. Today, it is the 5th most valuable company in the world, with a market cap of $1.1 trillion.

How did the company survive when so many others failed? Much to the dismay of investors, Amazon has taken a slow and steady approach, focusing more on recognition and innovation than revenue.

In a 60 Minutes interview, Amazon CEO Jeff Bezos explained this strategy: "The long-term approach is rare enough that it means you're not not competing with very many companies because most companies want to see a return on investment in, you know, one, two, three years. … I'm willing for it to be five, six, seven years. So , this simple schedule change can be a very big competitive advantage."

Similarly, the online travel booking site, , lost $1.1 billion in the dot-com crash. Instead of cutting brand marketing, the company doubled down on its efforts. You probably still remember the TV commercials featuring William Shatner as the "Price Line Negotiator", a campaign so successful it lasted the next 14 years. The company never slowed down, spending $3.8 billion on marketing in 2021. Today, Priceline's apex company, Booking Holdings, has a market capitalization of $78 billion.

Related: How I Turned a Crisis into a Defining Brand Moment

The ROI of brand equity in times of crisis

It's tempting to focus on short-term solutions during periods of volatility. You start digging into the numbers, looking for the areas that will provide the highest return. Brand equity is rarely displayed as a line item because it is built over years, not quarters. But focusing on building your brand equity is just as crucial in times of crisis as it is in times of stability. Trends change, customer needs change, but Who Are You stays consistent, and that fairness pays off in tough times.

Your brand is your most valuable asset. It's who you are, why you exist, and how you deliver on that promise. They are not your colors, your mascot or your product. Instead, it's how people feel when they interact with your business through any given touchpoint. You should be able to describe a brand like you describe an individual. Are they progressive and principled? Feminine and fierce? Autonomous and authentic? The right brand identity, cultivated, nurtured and ingrained in the minds of your audience can produce lasting results.

For example, in an era of tight budgets, a str...