The news: Small and medium-sized business (SMB) owners are preparing for a recession—and marketing is first on the chopping block, per a report from Clarify Capital.

Among the key findings:

• 28% of SMB owners say cutting marketing or ad spending is the first action they’ll take in the event of a recession—higher than any other category.
• Only 10% of SMBs feel that marketing is “off limits” for budget cuts during a recession, lower than any other category.
• 29% of SMB owners think sales and marketing are most vulnerable in a downturn.
• 36% of SMBs have already reduced discretionary spending like marketing budgets.

Zooming out: Recession has been a top fear for SMBs for a while, but why are business leaders eyeing marketing as a nice-to-have in a recession instead of a must-have?

When SMBs are at risk, short-term survival becomes the focus over long-term investments like marketing. Leaders will shift their focus to areas deemed essentials: Operational costs like rent and employee wages take precedence, and cutting marketing spending offers immediate cost savings and financial relief.

Yes, but: SMB owners might naturally see marketing budgets as a quick cut to remain afloat financially, but targeting marketing might cause more damage long term.

Reducing marketing budgets risks a significant blow to product and brand visibility. Without a sufficient marketing budget, brands—especially SMBs that need greater visibility—risk sacrificing brand awareness, audience targeting, customer loyalty, and, ultimately, business growth and sales.

Our take: Preparing for a recession is a necessity for SMBs that will be hit the hardest, but for those that deem reduced marketing budgets as a core strategy, it’s critical to take an approach that will save costs without sacrificing reach.