Why The Ostrich Effect is killing your brand

Tariff wars, political unrest, rising interest rates, and the weight of inflation means brands are wading through an economic and social crisis. The tendency to respond by cutting marketing budgets is detrimental to long term success, says Sutherland: “I'd argue that the shareholder value movement is actually deeply damaging to the long-term health of brands because it generally militates against longer-term investments. The first thing you'll cut will be a marketing budget.”

Years of research and industry insight tells us cutting budgets in a downturn is a mistake. While only a small percentage of firms successfully grow during an economic slump, those that continue to invest in marketing lay the strongest foundations for future success. While others pull back, these brands push forward. They grow their share of voice and eventually their market share.

Galloway comments: “And the best ones, the Unilevers and the Nikes of the world recognize that, unless they continue to make those marketing expenditures, they're going to pay a price and so will their shareholders. So, the good companies, even in recessions continue to invest because they recognize that they have to maintain brand equity.”

The consensus is clear. In a world gone dark, do not let your marketing budget disappear too.

Neutrality is like dark matter: it leaves no trace

At last year’s Cannes Lions Festival of Creativity, I joined Adam Morgan and Peter Field to present The Extraordinary Cost of Dull. We explored a troubling trend: short-term, sales-driven advertising is rapidly undermining long-term brand effectiveness. Most of these ads share one fatal flaw – they are painfully dull.

To prove this, I turned to System1’s database of over 100,000 ads and found one emotion at the heart of the problem: neutrality. In the US, neutrality accounts for a lack of response from nearly half of all advertising audiences. When people feel nothing, they do nothing.

Yet brands continue to pour billions into rational, performance-driven campaigns that bore consumers into inaction. Efficiency models and short-term data have become the industry’s safety nets. They are attractive, measurable, and seemingly low risk.

But safe is not always smart – especially in glamorous industries like sports and modeling. There, the cost of not standing out is extremely high, Sutherland explains. Galloway’s advice in return is simple: embrace the unattractive. Find success in the less glamorous industries.

The same principle applies to advertising. Take the risk. Invest in emotional, long-term brand building even when it feels less measurable.

Take insurance as an example. Traditionally, it has been one of the dullest sectors, saturated with rational appeals. As a result, US consumers feel neutral about insurance advertising nearly 40% of the time. But then came GEICO, breaking the mold with a playful, emotional approach and a friendly talking Gecko. The result? Almost anyone you ask today can name the brand with the talking Gecko. It left a trace.

Make advertising that turns audiences away from The Ostrich Effect

In behavioral science, there is a principle known as the Ostrich Effect. When people encounter distressing or guilt-inducing information, they metaphorically bury their heads in the sand. In today’s turbulent world, it’s more important than ever for brands to create something consumers can turn towards. They need to be a beacon of positivity and hope.

In his book Look Out, Orlando Wood identifies the creative features in advertising that generate positive emotions, capture attention, and drive long-term market share growth. These include dialogue, music, implicit communication, depictions of living beings, and a strong sense of place. They appeal to our broad-beam attention and trigger our emotional responses.

By contrast, ads built around rational, sterile qualities such as flat backdrops, mechanical soundtracks, product-focused messaging, and voiceovers tend to disengage audiences. They reflect the very disconnected reality that consumers are desperate to escape.

In a world that feels dark and fragmented, brands must be the light at the end of the tunnel. Prioritizing human connection is no longer an option. It’s a strategic imperative.

When marketing in a world gone dark, investing in long-term brand building is not a nice-to-have: it’s essential for laying the foundations that will enable your brand to survive and thrive in the years to come.

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