Commentary

Signal Vs. Noise: How Economic Volatility Is Rewriting The Ad Playbook

There’s a moment in every downturn when leaders realize: This isn’t just a blip. It’s the new operating reality. By now, the signs are clearer. Budgets are tightening. Consumer confidence is wavering. Teams are anxious. And economic policy is reshaping how brands go to market. Now is the time for marketing leaders to adapt strategically to help brands evolve and succeed during recession periods. 

Tariffs, inflation, and volatility in global supply chains aren’t just economic footnotes. They’re active forces reshaping marketing operations. Tariffs, for example, may not hit your media line directly, but they indirectly influence campaign timing, messaging, and budget strategy. When inventory gets delayed or costs jump mid-cycle, media plans shift, and often at the last minute. This requires strong collaboration between finance, operations, and marketing. Ask yourself: Which trends are cyclical and which are systemic? The better you can distinguish between headlines and hard data, the more confidently you can lead a brand through turbulence.

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Protect marketing as a strategic investment. It’s tempting to view marketing as an expense, but history tells a different story. Brands that continue investing in marketing during recessions recover three times faster than those that don’t, according to WARC. Long-term risks of not protecting marketing include a decline in brand equity and diminished customer loyalty.

With an impending recession and tariff-induced volatility, we’re now operating in a newly created white space in the market. As ad rates drop, competition fades, and consumer attention becomes cheaper to earn, it’s going to be harder and more expensive to regain visibility than to maintain it. Brands that stay the course and stay visible often emerge stronger, more memorable, and better positioned for growth.

Lean into performance and precision. Confidence drives ad investment, and when it wanes, media spend is often the first line item on the chopping block. This can lead to media deflation and market share shifts -- which can actually be advantageous by shifting spend toward performance media that offers measurable ROI. Whether it's reallocating dollars based on real-time conversion data or adjusting creative based on shifting consumer sentiment, the ability to move fast is now a competitive edge.

Communication is key. Tariffs and supply shocks not only affect your bottom line, but also complicate marketing calendars and message-to-market alignment. Clients, partners, and teams need transparency, which is why internal communication is just as important as external messaging. For example,  budget cuts in one area should come with clarity on where dollars are being spent. The more you communicate and are in alignment, the faster you can act.

The advertising playbook is being rewritten in real time. Recessionary pressure, tariff unpredictability, and consumer caution all demand a more inventive approach to content, targeting, and media strategy. This is the time to retool, test new formats, rethink audience segments, and explore channels you have deprioritized in prior years.

While an impending recession is reshaping consumer behavior and the noise is deafening, the brands that stay focused on the signal won’t just survive. They’ll set the pace on the other side.

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