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Why You Shouldn’t Cut Marketing in a Sluggish Economy

Posted on Friday March 28, 2025

A slow market—caused by economic downturns, industry shifts, or global uncertainties like tariffs—can make businesses hesitant to invest in marketing. It can be tempting to cut budgets to conserve resources, but this can be a  mistake. Marketing is not just about driving sales in the short term—it’s about maintaining brand visibility, strengthening customer relationships, and positioning for long-term success.

With tariff shifts impacting supply chains and consumer confidence, businesses big and small need to be proactive rather than reactive. Companies that continue to market strategically during uncertain times often emerge stronger when the market recovers.

The Importance of Staying Visible

In a slow market, visibility is crucial. If a company cuts its marketing efforts, it risks fading from customers’ minds. Meanwhile, competitors who stay the course—even in a scaled-back but strategic way—can strengthen their position and capture market share.

The impact of tariffs adds another layer of complexity. As costs rise due to new import/export policies, businesses may need to adjust pricing, product sourcing, and often, brand and marketing campaign messaging. Continuing a strong presence helps educate customers about these changes, keeps product offerings top of mind, and reinforces trust.

Key Considerations for Visibility in a Slow Market:

  • Maintain a presence across digital channels. Even if advertising budgets shrink, consistent organic content through blogs, social media, and email can keep your brand relevant.
  • Adapt messaging to the market climate. Customers are more budget-conscious in uncertain times, so focus on value, longevity, and problem-solving rather than luxury or excess.
  • Leverage PR opportunities. Thought leadership, industry insights, and transparent communication about supply chain changes due to tariffs and the economy can position your brand as reliable and knowledgeable.

Strengthening Customer Relationships

When consumer confidence is low, customers become more selective about where they spend their money. Businesses that engage with their audience and provide consistent value—not just transactional offers—are more likely to retain customers.

Rather than focusing solely on acquisition, a slow market is the time to deepen existing customer relationships focused also on retention. Marketing tactics could include:

  • Personalized marketing. Use email segmentation, targeted offers, and retargeting campaigns to provide customers with relevant content.
  • Loyalty programs. Reward customers for continued engagement, whether through discounts, exclusive content, or early access to new products.
  • Transparent communication. If tariffs or economic shifts are impacting pricing or product availability, be upfront. Customers appreciate honesty and will remain loyal to brands that keep them informed.

By building stronger customer connections during downturns, businesses ensure that when the market picks up, they have a base of engaged and loyal buyers.

Take Advantage of Reduced Competition

When economic uncertainty causes competitors to reduce their marketing efforts, it creates an opportunity. Digital ad space often becomes more affordable as businesses pull back, and content marketing can reach a larger audience with less noise in the market.

Paid advertising platforms like Google Ads and Meta’s ad network operate on an auction-based system. If fewer businesses are bidding for ad space, costs per click (CPC) drop, improving return on ad spend (ROAS). Even with reduced budgets, strategic ad placements can yield high-impact results.

Adapting Your Marketing Strategy to the Market Conditions

Marketing in a slow market doesn’t mean spending the same budget in the same way. Instead, businesses should refine their strategies to align with new economic realities and customer concerns.

Key Adjustments for Marketing in Uncertain Times:

  • Focus on value-driven messaging. If tariffs increase costs, businesses should highlight product quality, durability, and long-term benefits.
  • Shift toward cost-effective channels. SEO, organic social media, and email marketing require lower investments than paid ads and can yield strong engagement over time.
  • Use educational content. Blogs, webinars, and guides can address customer concerns about industry changes, tariff implications, and cost-saving strategies, positioning the brand as a trusted resource.
  • Leverage partnerships and collaborations. Co-marketing and partnering on social with complementary brands can help stretch marketing budgets and reach new audiences. Which can also allow brands that have similar core values, mission and vision, to work together for a greater cause which can amplify positive customer perception.

Businesses that adapt rather than retreat can continue generating leads and maintaining customer engagement, even in uncertain conditions.

Conclusion

While it may seem logical to cut marketing during a slow market, doing so can have long-term consequences. Instead, businesses should view downturns as opportunities to refine their messaging, build stronger customer connections, and gain an advantage over competitors who retreat.

Marketing during uncertain times, especially with ongoing tariff uncertainty, requires agility and strategic thinking. Companies that stay engaged with their audience can quickly pivot to meet emerging needs, whether that’s through product adjustments, alternative supply chains, or value-based pricing. Businesses that stay active and adaptable will be in the best position to thrive when the market rebounds

Take a close look at your current marketing efforts. Are there areas where you can refine your messaging or shift toward more cost-effective strategies? Now is the time to invest wisely and position your brand for long-term success.

Contact Madhouse Advertising, a proudly Canadian, award-winning advertising agency, to develop a marketing strategy that keeps your business strong—even in uncertain times. Let’s build your brand for the future. Reach out to us today!

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