By Simon Walter, Marie Gaschler, Tobias Enke
The last years were tough. Tech startups went from an all-out hype mode to an immediate crisis caused by the aftermaths of the pandemic, a global economic downturn, and geopolitical conflicts.
It is precisely in times like these that companies should invest in their brand.
Research shows that it’s cheaper to cut the clutter and get the consumer’s attention during a recession when there’s less advertising pressure. Furthermore, companies that double down on brand usually emerge stronger than competitors.
Nevertheless, contrary to scientific evidence and common sense, most companies panic and cut their brand marketing budget to focus almost exclusively on short-term measures and touchpoints close to conversion.
We wanted to know how our portfolio companies cope in this challenging environment.
Do they wind down their brand activities to stretch the runway or seize the opportunity to raise the stakes and get the upper hand before the next funding round or the inevitable economic recovery?
So, we surveyed our portfolio companies, asking brand and communications executives how they react to the crisis, which challenges they face, and how they organize. We asked about industry trends, strategies, channels, campaigns, budgets, and resources.
This report summarizes our findings and learnings, and we’re glad to share it with everyone.
We hope the insights help you navigate these challenging times and make the right decisions on how to communicate with your customers, partners, employees, and investors.