There are strong indications that an economic downturn is approaching, and with it often comes concern among many business owners. It is not uncommon for companies to try to “cut back” on marketing when purchasing power declines. In this article, we explain why this is a very bad idea and why you should instead invest in SEO during a recession.
It is often said that the advertising industry is one of the first to feel the effects of an economic downturn, as companies tend to reduce their advertising budgets early when tougher times are anticipated. In Forbes, this was already discussed in September 2019, highlighting the positive consequences for companies that instead see opportunities in investing and expanding their marketing efforts. Among the examples mentioned were Pizza Hut and Taco Bell, both of which gained significant market share from McDonald’s in the early 1990s. Another example is Amazon, which increased its sales by 28% during the financial crisis in 2009.
The most common reaction ahead of and during a recession, however, is not to increase marketing budgets, but rather the opposite. This is likely because marketing is often seen as a cost.
We believe instead that a recession should be viewed as an opportunity—an opportunity to strengthen your position relative to competitors. In this article, we therefore explain how this can be achieved through search engine optimization.
Micael Dahlén, author and professor of economics at the Stockholm School of Economics, argues that it is a bad idea for companies to reduce their marketing budgets whenever a recession approaches.
Dahlén refers to studies conducted both in Sweden and internationally, showing that companies should instead invest in marketing when the economy declines.
“Studies show that companies that invest during a recession gain the greatest return when the economy turns, having secured a significant head start.”
Dahlén also argues that businesses can focus on building their brand—planting the seeds that can be harvested when the economy improves.
Marketing should therefore be viewed as an investment rather than a cost. However, it is crucial to invest wisely, especially during a recession when consumer demand may weaken. In such cases, it is best to avoid risky marketing initiatives that are difficult to measure and only deliver short-term results.
Optimizing your website for search engines is generally a good idea in any economic climate. In this article, we aim to show why it is an especially good idea during a recession.
Why invest in SEO during a recession?
Below are the most important reasons, in our view, to invest in SEO both before and during a recession.
- SEO is cost-effective and delivers high ROI
SEO is often described as “free,” but that is not entirely true. While website owners can manage SEO themselves, it requires time and focus that could otherwise be spent on core business activities. During a recession, it is crucial to work smart and invest wisely.
High-quality SEO does cost money, and if you want real results—such as ranking for keywords that convert—you should work with someone who knows what they are doing and can take a strategic approach to improving and maintaining rankings that generate organic traffic.
That said, SEO is not expensive compared to other marketing channels, and you get a lot in return for a relatively small investment. SEO generates highly relevant traffic from users actively searching for what you offer, often with immediate intent. This leads to more conversions and increased sales, making SEO a cost-effective marketing investment.
- SEO is a long-term investment
It can take time to see results when you first start optimizing your website, but once SEO gains momentum, the benefits can be reaped over a long period of time. SEO increasingly revolves around building trust in Google’s eyes, which is an ongoing process.
It may take several months to see results, depending on industry and competition. Once high rankings are achieved, they are generally easier to maintain than to reach initially, although continuous improvement is still required.
- SEO is measurable
One of the major advantages of SEO is its measurability. While rankings are often discussed, what truly matters is how much organic traffic is generated and how sales increase. This data is easily accessible through tools such as Google Analytics, making SEO one of the most measurable marketing efforts available.
- SEO builds trust through organic search results
Most users are aware that ads usually appear at the top of search results. As people become more familiar with how Google works, they increasingly trust organic results to provide the most relevant answers.
High organic rankings can therefore act as an unofficial quality seal from Google, signaling trustworthiness and relevance—both important for brand building.
- SEO is brand-building
As Micael Dahlén suggests, recessions are an ideal time to focus on brand building. Google places increasing importance on brand awareness, and well-known brands often enjoy higher trust and better rankings.
SEO can actively support brand building by increasing visibility and reinforcing associations between your brand and specific products or services.
SEO is highly competitive
Competition for top rankings in Google’s search results is intense, especially for commercial keywords. In some industries, breaking through can feel nearly impossible—particularly as ads, featured snippets, images, and videos increasingly dominate the SERP.
Wayne Gretzky once said: “Skate to where the puck is going, not where it has been.” During a recession, opportunities may arise when competitors reduce their marketing efforts. By investing instead, you can capture valuable positions.
SEO continues to grow – regardless of the economy
Google Trends shows that interest in SEO has continued to grow over time, both in Sweden and globally, largely unaffected by economic downturns. While other marketing channels have fluctuated, SEO has remained resilient.
The SEO industry stands strong during a recession
While marketing budgets are often reduced during downturns, SEO is frequently one of the last areas companies cut. Organic traffic converts well, is cost-effective, and delivers long-term value.
Many businesses understand the importance of maintaining their rankings so they are well positioned when the economy rebounds.
