For scaling businesses operating on tight budgets, marketing often falls to the bottom of the priority list. But marketing isn’t an optional expense – it’s a critical investment in your business’s growth.
Yet in a recent survey, 50% of small businesses in Australia and New Zealand said they spent less than $15,000 a year on marketing – 23% less than $1,500. While it may feel sensible to divert funds to new hires, facilities or inventory as your business grows, cutting back on marketing can quickly stall your momentum.
“When faced with economic concerns, the instinct is to conserve cash, and often marketing is the first place SMBs look to cut back,” said Renee Chaplin, VP Asia Pacific at Constant Contact, which conducted the survey. “However, those that double down and invest in marketing during these times are able to increase loyalty to retain customers and attract new ones when they need it the most.”
Marketing is the key to successfully scaling your business
Businesses that don’t invest in marketing don’t grow. It’s that simple.
In fact, a study by the consultancy found that companies that continued to prioritise growth and marketing during the 2008 recession saw 150+ percentage points higher shareholder returns over the next decade than those that didn’t.
“We often see companies following an unwritten rule: if they’re strapped for cash, they’ll stop investing in areas – such as marketing – that don’t generate an obvious direct return on investment,” reported McKinsey. “Instead, companies [should] invest in marketing as a key to long-term growth”
It’s not just money that many businesses hold back from marketing – it’s time. A recent survey found that more than half of business owners spend less than an hour a day on marketing, and over 50% admit to postponing or deprioritising it altogether. But failing to invest consistently in marketing can carry serious long-term consequences for your business.
Why businesses can’t afford to deprioritise marketing
Putting long-term brand building on hold can quietly erode your brand equity. As awareness and trust decline, even your strongest conversion campaigns begin to underperform. You’re forced to work harder – and spend more – just to maintain the same level of results.
Research from Nielsen shows that businesses lose around 2% of future revenue for every quarter they stop advertising. Ongoing marketing, on the other hand, accounts for between 10-35% of a brand’s overall equity. And once brand decay sets in, it can take three to five years of consistent marketing investment to fully recover, according to Nielson.
One of the biggest barriers to consistent marketing is cash flow. Industry benchmarks suggest investing 5–10% of annual revenue, allocating around 60% of that investment to long-term brand building and 40% to sales activation. Businesses see far better results from performance campaigns like promotions and discounts when brand awareness and consideration are high, according to Nielson.
But for many businesses, investing 5-10% of revenue in marketing can feel out of reach when operational costs compete for the same budget. This is where working capital solutions make a difference. By unlocking funds tied up in operations, businesses can maintain consistent marketing investment and protect their momentum.
Marketing as a growth engine – not a cost centre
Marketing isn’t a nice-to-have for scaling businesses. It’s a strategic investment that creates the conditions for sustainable, long-term growth. Staying visible, relevant and trusted requires ongoing investment in marketing.
Reducing marketing spend might deliver short-term savings, but it also stalls momentum and makes it harder to regain visibility once competitors have taken the lead. builds brand equity for better results. Sustained marketing investment is what separates businesses that grow from those that don’t.
Don’t let cash flow be the reason your marketing stalls. Octet helps businesses access flexible working capital solutions, like Trade Finance and Debtor Finance, so you can keep investing in growing your business through lead generation – without compromising your day-to-day operations. Talk to our experts today to explore how we can help fund your next marketing push.
Disclaimer: These comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
