How Douglas Marketing Group Navigates Border Tensions and Recession-Era Spending

July 24, 2025

In a marketing landscape marked by geopolitical friction and economic unpredictability, one agency is standing out and earning global accolades. Douglas Marketing Group (DMG), headquartered in Windsor, Detroit, and Troy, MI, recently captured five Hermes Creative Awards—known as the “Emmys of creative industries”- for campaigns for notable local organizations such as Wolfhead Distillery and Windsor Police Service. This recognition places its locally-rooted work on an international stage.

We spoke with Kay Douglas, President and CEO of DMG, about the significance of such accolades and what they reveal about cross-border marketing dynamics in 2025.

1. Shields Up: Why Marketing Momentum Matters Now

In the discussion hosted by Amy Dodge of CBC – Windsor Morning, Kay Douglas’s perspective reinforces a principle that has been validated across decades of economic research and real-world brand performance: even amid recessionary threats, geopolitical tensions, and structural barriers like tariffs, companies that sustain smart, adaptive marketing efforts are far more likely to retain consumer mindshare, maintain sales velocity, and emerge from crises in a stronger competitive position. This strategy is not only anecdotal—it is backed by a robust body of historical and empirical evidence from recessions past, illustrating the long-term benefits of staying active and visible in the market. The following studies and case analyses provide a deeper look at the data supporting this claim.

Amid fears of tariffs and trade slowdowns, companies often instinctively pull back on creative initiatives. But decades of data suggest the opposite yields stronger long-term dividends. A McGraw-Hill study of 600 firms during the 1981–82 recession found companies maintaining ad spend saw 256% greater sales growth over the next five years compared to those that cut it. Similarly, research during the Great Recession showed brands that held firm or increased marketing budgets outpaced competitors by around 20% post-crisis.

Harvard Business Review reinforces that strategic reallocation, not elimination, of marketing resources during downturns leads to better resilience and sharper recovery. Another study stretching back to the 1920s (e.g., Kellogg vs. Post during the 1930 Depression) confirms firms doubling advertising in hard times can claim significant market share gains.

2. The Cross-Border Collaboration Engine

As Kay Douglas explains, these collaborations go well beyond traditional networking; they represent strategic “co‑opportunities” grounded in shared goals, pooled resources, and mutual market leverage. Rather than simply exchanging contacts, this approach involves co-creating value through structured alliances. Initiatives such as those supported by the Ontario government and the Canadian–U.S. Business Association offer critical frameworks for cross-border engagement, sector education, and collaborative outreach. A prime example is DMG’s Sole Focus campaign for the Canadian Mental Health Association, which mobilized 78 partner organizations to achieve levels of in-kind and financial support that would have been unattainable by any single entity alone. This model exemplifies a broader trend substantiated by research: that businesses participating in well-aligned cooperative networks, especially during periods of disruption, outperform their isolated counterparts in reach, resilience, and long-term impact. The following references provide empirical validation and further context for the effectiveness of such collaborative strategies.

Both U.S. and Canadian businesses face similar challenges—uncertainty, evolving regulations, and emotional sensitivity of consumers—but collaboration is proving to be a key differentiator.

Key drivers include:

• Shared infrastructure and governance: Bilateral initiatives such as the Canada–U.S. Regulatory Cooperation Council streamline trade complexity and harmonize regulations.

• Regional “sub‑national” alliances: Cities, provinces, and states often forge tighter ties than federal counterparts, with border regions functioning as incubators for localized economic cooperation.

• Academic evidence of network impact: Research shows cross-border business collaborations—especially for small and immigrant-led enterprises- significantly boost export performance.

3. Networking on Steroids: A New Business Lifeline

Kay calls the current environment “networking on steroids.” This reflects a shift from superficial relationship-building to deep, strategic alliances based on shared objectives.

According to industry benchmarks, networking offers crucial access to knowledge, referral opportunities, and legitimacy—turning connections into powerful engines for growth. Enhanced collaboration—combining resources, messaging, and cultural alignment- provides a multiplier effect.

This networked model also matches studies showing proactive marketing and strategic alliances during downturns yield positive outcomes.

4. The Biggest Blunder: Freezing in Place

Kay warns against the common reaction: freezing, getting paralyzed and cutting budgets entirely. Yes, cost management is prudent during uncertainty. But history repeatedly shows organizations that stop marketing, digitization, and partnerships risk losing momentum—and consumer mindshare.

Pulling back entirely risks stalling progress, weakening brand presence, and missing opportunity windows while competitors stay visible and agile. As echoed in recession-era analyses, reduced advertising may improve short-term cost metrics—but companies that cut often underperform during recovery.

As noted earlier, the McGraw-Hill study supports the caution in reduction or cessation of ad spend. This is further supported by the IPA/PIMS analysis in 2008 that the findings presented at a 2008 marketing conference demonstrated that companies which cut marketing budgets achieved higher short-term ROI but underperformed during recovery. Those that maintained or increased spending gained an additional 1.3 percentage points of market share post-recession. More recently and identifying the lasting power of this narrative is the McKinsey & Company survey done in 2022. A survey of North American CMOs showed that marketing budgets are frequently the first to be slashed—despite evidence that companies that adopt an investor mindset, reallocating rather than eliminating spend, achieve above-market total shareholder returns in the decade after downturns.

5. Tactical Playbook: Adapt, Collaborate, Stand Out

DMG’s strategy reflects a threefold playbook:

1. Adaptive investment: Focus not just on spending but reallocating to high-return channels, mirroring findings that ROI-driven digital efforts outperform during recessions.

2. Purposeful alliances: Form co-opportunity marketing ventures, like mental health advocacy or service campaigns, together with other organizations to multiply brand reach and community impact.

3. Consistent brand presence: Maintain visibility and trust. Consumer psychology, such as the “lipstick effect”, buying small indulgences during downturns, suggests brands that remain present during uncertainty capture discretionary spend.

Closing Perspective

In uncertain times—border tensions, tariff threats, pandemic hangovers- the instinct may be to tighten the purse strings and wait it out. Yet, as Douglas Marketing Group demonstrates, the smarter strategy is to lean in.

• Sustain marketing with intention

• Partner boldly with aligned visionaries

• Stay visible and relevant

These tactics not only preserve brand equity, but they also launch it forward. The Hermes awards are proof that regional work, when executed with strategic insight and collaborative reach, can resonate globally. For local brands on both sides of the border, the message is clear: don’t freeze—forge ahead.

Listen to the full interview here: https://www.cbc.ca/listen/live-radio/1-106-windsor-morning/clip/16159197-in-todays-market-its-partner-perish.-a-windsor

References and Further Reading:

• Harvard Business Review on smart recession budgeting

https://hbr.org/2020/08/dont-cut-your-marketing-budget-in-a-recession?

• Historical advertising success (Kellogg, recession studies)

https://www.newyorker.com/magazine/2009/04/20/hanging-tough

https://innovationmanagement.se/2020/03/31/recession-innovation-and-survival-a-lesson-from-kelloggs

• Cross-border regulatory initiatives (Canada–U.S. RCC)

https://www.wilsoncenter.org/article/us-canada-beyond-the-border-and-regulatory-cooperation-council-initiatives

• Entrepreneur export performance via networks

https://ugspace.ug.edu.gh/server/api/core/bitstreams/4bcb8d28-f8f3-4ccd-89c3-c80df6dccd7d/content

• Business networking benefits overview