Navigating the Impact of an Unstable Global Economy on Media and Advertising
9 April 2025
We find ourselves in an era of persistent uncertainty. The global economic landscape, already shaky from previous disruptions, has been further challenged by geopolitical tensions, supply chain issues, inflationary pressures, and shifting fiscal policies. Wars, interest rate hikes, energy crises – the list of uncertainties is long, and the ripple effects have been felt across industries, particularly in media and advertising.
The global economy can often feel like a giant octopus, its far-reaching tentacles extending into every aspect of our lives. When instability arises, those tentacles tighten, gripping everything from consumer confidence to corporate strategies. This interconnectedness means that no industry or individual is entirely isolated from the ripple effects of economic turbulence. By understanding the length and strength of these tentacles, we can better anticipate, adapt, and thrive in the face of uncertainty. I’ve spent years helping brands navigate through volatile periods like this, and seen how businesses need to evolve in times of economic instability. The big question businesses face right now is how to move forward with confidence amid mounting challenges. Do you tighten the purse strings, or do you double down on advertising and marketing initiatives? In this blog, we’ll explore the strategic approaches brands can take to weather the storm and make the most out of a difficult situation.
Opportunities in Uncertainty
Economic turbulence often creates a ripe environment for innovation, resilience, and growth. While challenges are inevitable, history shows us that some of the most successful companies were forged in the fires of uncertainty. By focusing on adaptability and strategic pivots, businesses can uncover opportunities that might otherwise remain untapped.
Leveraging Uncertainty for Growth
Economic crises are fertile ground for innovation. For example, during the 2008 financial crisis, companies like Airbnb and Uber emerged as household names. These businesses identified widespread consumer pain points, affordable travel accommodations and cost-efficient transportation, and disrupted traditional industries with fresh solutions that thrived in the new economic climate. Their ability to exploit market gaps showcases the importance of agility during periods of change.
Building Strength Through Innovation
A key lesson for businesses is understanding that innovation does not always require a complete reinvention. Organisations can achieve exponential growth by adapting existing products or services to meet evolving demands. Slack, for example, began as a failed video game project but transitioned into a communication tool that revolutionised workplace collaboration. This pivot underscores the value of reassessing your resources and strengths to identify untapped potential.
By embodying a mindset of resilience and innovation, any business can find opportunities amid even the most unstable circumstances.
The Domino Effect of Economic Disruption
When the global economy wobbles, businesses often take immediate action to safeguard their financial health. Budgets are scrutinised, and projects are scaled back or shelved altogether. Marketing is frequently one of the first areas targeted for cuts – it’s seen as a discretionary expense rather than a vital business function.
However, retreating from visibility in a time of economic uncertainty can be a risky move. As consumer confidence drops and purchasing decisions become more considered, many companies look to engage with brands that provide value and relevance. If your business pulls back on its marketing efforts, there’s a risk that your competitors – the ones who maintain or even increase their media visibility – will capture your audience’s attention instead.
It’s important to recognise that this is not a time for reckless spending or blind optimism. Instead, it’s about being strategic and adaptive, understanding shifts in consumer sentiment, and realigning your media efforts accordingly.
The Impact of Tariffs on Consumer Spending and Marketing Budgets
One of the many layers of economic instability in the current landscape is the imposition of tariffs. Trade policies between major economies have fluctuated over the last few years, and the ongoing impact of tariffs is one of the primary causes of inflation. The rising cost of goods, particularly in industries reliant on imported raw materials, is forcing businesses to pass on higher prices to consumers.
For industries such as automotive or agriculture, tariffs have had a domino effect, resulting in higher production costs, reduced demand, and forced adaptation like localising supply chains.
The resulting inflationary pressures can be a double-edged sword for companies. On one hand, higher prices can result in reduced consumer demand, as people adjust their spending habits to accommodate increased costs. On the other hand, businesses may feel the pressure to maintain profitability, which can lead to tighter marketing budgets. The temptation to scale back media spend, especially in uncertain times, is strong – but it’s a decision that could come back to haunt companies in the long term.
For example, during the 2008 recession, many businesses significantly reduced their marketing budgets, aiming to cut costs amid economic uncertainty. However, companies such as Amazon maintained their marketing expenditure, resulting in a stronger market presence and long-term growth once the economy stabilized. Research consistently shows that businesses investing in marketing during economic downturns often outperform competitors who do not.
For marketers, this creates a delicate balancing act. On one side, brands must be mindful of the financial constraints that tariffs impose on both businesses and consumers. On the other hand, they must also be aware that reducing marketing budgets could mean losing the battle for attention in an already competitive marketplace.
Media Consumption Shifts, Not Reductions
A common misconception in times of economic difficulty is that consumers will simply stop consuming media altogether. The reality is, media consumption doesn’t shrink, it just shifts.
As consumers become more selective about how and where they spend their money, they also shift their media habits. For example, there’s often an increase in streaming, particularly with platforms that offer free or lower-cost access to content. Similarly, second-screen behaviour, such as using mobile devices while watching television, becomes more prevalent.
From a marketing perspective, this shift opens up opportunities for digital advertising – but only for brands that are agile enough to adapt to these changes. As traditional media consumption patterns change, digital channels like paid social, SEO, and email marketing become even more important. But to capture attention effectively, brands need to ensure they’re communicating in the right spaces at the right times.
Brand Building vs Performance Marketing
In times of economic uncertainty, businesses tend to favour performance marketing. This form of marketing is direct, measurable, and shows a clear return on investment, making it a logical choice when budgets are tight. However, focusing solely on performance at the expense of brand-building can lead to long-term strategic risks.
Historical examples from the 2008 recession show that brands that continued to invest in brand awareness during a downturn ultimately outperformed their competitors in the recovery. Why? Because when fewer brands are visible in the market, it becomes easier to dominate the conversation. Moreover, consumers tend to remember the brands that stayed present when times were tough.
Of course, this doesn’t mean companies should ignore performance metrics or cut all costs. Instead, it’s about finding a balance. Even in tough times, brand-building efforts that focus on long-term relationships with customers can pay dividends in the future.
Attention is the New Currency
In this crowded, information-saturated landscape, attention has become the ultimate commodity. With a multitude of brands vying for consumer focus, quality over quantity is now essential. Consumers are bombarded with advertising daily, but only a fraction of that messaging actually resonates. In a downturn, they are even more selective about where they direct their attention.
Therefore, it’s crucial that your brand’s message is highly targeted and relevant to your audience’s current mindset. It’s no longer enough to push a product or service – brands need to speak to the emotional needs of their consumers and offer value that goes beyond a simple transaction.
In these turbulent times, data becomes a powerful tool. But it’s not just about collecting large volumes of data; it’s about smart data. Businesses should focus on intent signals, browsing behaviour, and real-time analytics to deliver content that’s meaningful, relevant, and timely. The key is to avoid one-size-fits-all campaigns and instead create tailored experiences that meet your audience where they are.
Empathy in Messaging
During uncertain times, tone matters more than ever. People are dealing with job insecurity, rising costs, and other personal challenges, hard-selling in this context can be counterproductive. Brands that succeed during economic downturns are often those that show empathy and align their messaging with the mood of the moment.
For example, rather than pushing a hard-sell message, businesses can highlight how their products or services can provide comfort, stability, or tangible value to customers struggling with financial concerns. Messaging that acknowledges the current climate and speaks to customer needs with sincerity can build trust and long-term loyalty.
During the pandemic, retailers like John Lewis focused on messages of community and resilience, strengthening their emotional connection with audiences.
Rethinking Channels, Not Just Budgets
In times of crisis, marketers often face the temptation to scale back on spending across the board or focus on “safe” channels. But often, the right approach is to reassess how marketing spend is allocated, rather than simply reducing it.
A study found that businesses maintaining or increasing advertising budgets during recessions experienced 256% higher sales increase post-recession compared to those who cut spending (Harvard Business Review, 2020).
For example, if paid social advertising is not delivering the expected ROI, it may be worth exploring other channels where consumers are actively seeking value, such as organic search or email marketing. In some cases, more traditional channels such as podcast ads, newsletters, and influencer partnerships may offer better ROI in times of economic difficulty, as they tend to feel more personal and trustworthy to consumers.
Collaboration as a Strategic Advantage
During challenging economic times, collaboration can be a game-changer. By partnering with other brands or influencers, companies can share the costs of media placements and access new audiences. This is especially true for co-branded campaigns, influencer collaborations, and industry-specific partnerships that help amplify reach while offering mutual value.
The idea is to look beyond the individual business and think about how assets like audiences, expertise, and content can be shared for greater impact.
Measuring What Matters
As companies reassess their marketing efforts, measuring success becomes more critical than ever. Too many teams panic and start measuring every short-term click or conversion without considering long-term metrics like customer lifetime value, brand sentiment, and loyalty.
Now, more than ever, businesses should focus on the health of their brand. Are consumers recommending your products? Are they engaging with your content? How are your long-term brand metrics holding up? Reviewing KPIs in light of the current economic climate will ensure you’re tracking the right indicators and making data-informed decisions.
5 Marketing Tactics to Build Trust During Uncertainty
- Focus on Digital Channels: Strengthen your presence where your audience is most active, ensuring seamless and engaging digital experiences.
- Highlight Customer Success Stories: Share real-world examples that demonstrate the value and impact of your solutions.
- Increase Transparency: Communicate openly about challenges, solutions, and processes to foster credibility.
- Prioritise Personalisation: Tailor your messaging to address the unique concerns and needs of your audience segments.
- Invest in Community Building: Create opportunities for connection and support, reinforcing loyalty and a sense of belonging.
Final Thoughts: Strategic Resilience in Times of Uncertainty
Economic downturns may seem daunting, but they don’t have to be catastrophic for your brand. The key is to be strategic, adaptable, and resilient. The businesses that thrive in these times will be the ones with the clearest strategy, the sharpest insights, and the most agile marketing plans.
It’s not about surviving, but about navigating the storm with confidence and foresight.
Ready to Future-Proof Your Media Strategy?
At SK, we help businesses stay ahead of the curve, even in uncertain times. Whether you’re looking to optimise your media spend, adapt your content strategy, or explore new marketing opportunities, our team is here to guide you through the evolving digital landscape.
Get in touch today to discuss how we can help you build a more resilient marketing strategy that prepares you for both short-term challenges and long-term growth.