Strategic Budgeting: Knowing Where to Cut and Where to Invest When Resources Are Limited

In today’s climate, every pound counts. 

Marketers are under more pressure than ever to justify how their budgets are spent. In the face of economic uncertainty, rising costs, and shifting consumer behaviour, many are being asked to deliver more with less. The challenge? Cutting waste without cutting future growth. 

Strategic budgeting isn’t just about making cuts, it’s about knowing where to reduce investment with minimal impact, and where to continue (or even increase) investment to drive sustainable results. 

This guide offers practical advice for brand managers, media planners and senior marketers looking to navigate tight budgets while still delivering against business goals. 

The budget squeeze — and why it’s not just about short-term survival 

In periods of financial strain, there’s often an instinctive shift towards short-term performance. Budgets get funnelled into lower-funnel tactics like paid search and retargeting, while long-term brand building (like TV, OOH, or upper-funnel digital) gets deprioritised or paused entirely. 

At the same time, marketers feel pressure to innovate and test new platforms like TikTok, retail media, or connected TV. But carving out test budgets can feel risky when core performance metrics are on the line. This creates a familiar tension: how do you explore new opportunities without sacrificing efficiency? 

The key is finding the right balance, understanding what drives both short-term conversions and future brand equity. Research from the Ehrenberg-Bass Institute suggests that brands who stop advertising for a year or more often experience year-on-year sales declines.  

So, while pausing advertising that focuses on brand building might offer a short-term boost in profits, the evidence suggests that doing so risks putting the brand on a downward sales trajectory. 

Where to cut (without compromising future performance) 

Marketing objectives evolve year to year — sometimes even quarter to quarter — so media plans need to flex accordingly. When you understand the role each channel plays, you can make faster, smarter decisions. 

But that doesn’t mean cuts should be made across the board. Some areas will warrant protection, others will need adjustment. The key is knowing the difference. 

Start by identifying low-performing channels or inefficient spend. 

Use econometric models to map the ROI of each channel against its scale or value delivery. This strategic view can highlight areas where budgets aren’t working as hard as they should be, whether that’s an underperforming platform, campaign or targeting strategy. 

Avoid common mistakes. 

One of the biggest missteps is cutting brand budgets entirely. Even if long-term results are harder to measure, brand-building work often underpins future sales performance. Cut too deep here, and you risk undermining the funnel as a whole. 

Where to invest for maximum impact 

When budgets tighten, the most valuable thing you can do is invest in what’s proven to work. 

Double down on channels with strong ROI and strategic value. 

Use past performance data to identify where spend consistently delivers and optimise further. This might include upper-funnel digital, retail media, or even reintroducing TV in a more targeted, scenario-based way. 

Don’t cut measurement. 

Investing in analytics and econometrics might feel like a luxury when budgets are constrained, but it’s the opposite. It’s how you identify what to protect, what to test, and where to optimise. Measurement is a multiplier, helping your reduced budget go further. 

Balancing short-term gains with long-term growth 

The best-performing plans don’t just chase quick wins; they protect future value. 

Use models and optimisation scenarios to explore trade-offs. 

We use econometric models to help clients understand the ROI trade-offs between different budget plans. By carefully selecting the right channels and optimising how each one is deployed, we’re often able to strike a balance, protecting brand-building investment without significantly compromising ROI. 

Creative matters too. 

Think beyond media. Ask how your creative assets will work in each channel, and ensure campaigns are aligned to the role of each tactic, whether it’s building awareness, driving consideration, or converting prospects. 

Making the case to stakeholders 

In tough conditions, marketers need to be clear, confident and evidence-led when presenting revised plans to senior teams. 

Frame the budget by funnel role. 

Explain which channels support the upper, mid and lower funnel, and what happens if you remove any layer. Avoid extreme reallocations that take you too far from what’s worked in the past. 

Use data to secure buy-in. 

Present different scenarios and explain the trade-offs. Stakeholders need clarity, confidence and a plan for evaluation. Showing how you’ll test and refine your budget goes a long way. 

How we can help  

At MetaMetrics, we recently worked with a client who had gradually deprioritised TV due to its relatively lower ROI. Over time, this created concern about reach and long-term brand health. 

By running different investment scenarios, we were able to find a plan that reintroduced TV in a targeted way, delivering both acceptable ROI and improved reach. The result? A budget that satisfied short-term demands without undermining long-term goals. 

More broadly, we’re seeing a shift in mindset across the industry. Unlike previous downturns, many brands today are avoiding the instinct to overcut. They’re being more considered, holding onto investment that supports long-term health, and acknowledging that short-term savings can come at a long-term cost. 

Making every pound count 

Strategic budgeting isn’t just about knowing what to cut, it’s about knowing what to keep.  

In a world where every decision is under the microscope, marketers need to be more deliberate, data-driven, and confident in how they balance today’s performance with tomorrow’s growth. 

The right budget is the one that works hardest, not just now, but for the future of your brand. 

At MetaMetrics, we help brands make smarter, evidence-based decisions through robust econometric modelling. So, when budgets are tight, you’ll know exactly where to dial back — and where to double down.