Tariffs, Cutbacks, and Economic Volatility: 5 Ways Advertising Leaders Can Stay Ahead in 2025 - Basis Technologies
Apr 7 2025
Clare McKinley

Tariffs, Cutbacks, and Economic Volatility: 5 Ways Advertising Leaders Can Stay Ahead in 2025

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Brands and agencies are bracing for economic turbulence.

Amidst the Trump Administration’s shifting tariff announcements, budget reallocations, massive federal layoffs, and other emerging economic policies, global ad spend forecasts have been reduced by nearly a full percentage point. Consumer spending is also slowing due to economic concerns, with consumer sentiment declining for the third consecutive month in March—and down 27% year-over-year.

Unfortunately, this uncertainly appears likely to continue for the foreseeable future. Rather than waiting for stability, brands and agencies must take proactive steps to ensure their media investments remain efficient and effective in a shifting landscape. To help advertising leaders stay ahead, Basis experts outlined the following recommendations for navigating the current landscape:

1. Start Scenario Planning

“The most challenging thing for advertising leaders right now is the uncertainty,” says Grace Briscoe, EVP of Client Development at Basis. While leaders can’t predict exactly how this uncertainty will pan out, they can mitigate risk by analyzing potential economic conditions and preparing strategic responses in advance.

“In times of uncertainty and economic downturns, we know that advertising and marketing budgets are a line item that can be cut quickly,” says April Weeks, Chief Investment and Media Officer at Basis. “Forward thinking brands and agencies are assessing the potential outcomes of today’s economic uncertainty and planning strategically for success in each one.”

Scenario planning can help businesses respond more swiftly when the economy takes a clearer direction. Leaders should reflect on past economic downturns, analyze the strategies they used during those periods, assess their effectiveness with historical data, and apply those insights to prepare for varying degrees of future economic challenges and ensure the highest likelihood of success.

2. Prioritize Transparency

“There’s a lot of appetite for visibility into how media dollars are invested and for using that knowledge to optimize spending,” notes Briscoe. This was true even before economic volatility became a concern, as transparency has long been a point of tension between agencies and brands.

During an economic downturn, stakeholders’ already high demand for transparency will only intensify. If advertising budgets shrink, marketing leaders will need robust, reliable reporting systems to help demonstrate the impact of their spend and, when necessary, advocate for more investment.

“In times of economic uncertainty, it’s critical to be able to show that marketing isn’t a cost center, but rather a revenue-generating asset,” says Weeks.

For agency leaders, staying tightly aligned with clients on KPIs and leveraging historical data to communicate the potential impacts of budget cuts across specific channels or platforms will be key to serving as effective strategic partners to their clients.

3. Gather Competitive Intelligence

Amidst economic volatility, it’s especially important for brands and agencies to keep tabs on the competitive landscape specific to their sectors. In particular, marketing teams should keep a pulse on how their competitors are reacting to economic conditions.

“Especially when it comes to things like discounts and limited time offers, advertisers should be ready to match competitors or implement alternative strategies to protect their brand or client,” says Weeks.

4. Learn from Past Economic Downturns

One clear insight has emerged throughout economic downturns over the past century: Brands that continue spending fare better and recover more quickly than those who don’t.  

“Pulling back on advertising in a time when a lot of other brands are taking that approach isn’t necessarily the best strategy,” says Katie McAdams, Chief Marketing Officer at Basis.

When businesses scale back on advertising, they reduce brand awareness—the financial impacts of which may not be immediately apparent, but will be felt over time.

“Branding and revenue are intrinsically linked. When we’ve heavied up on brand awareness tactics, we’ve seen performance metrics like lead flow spike,” says McAdams. “That, in turn, drives other key metrics like revenue growth and the expansion of new customer bases. When marketing teams pull back on brand awareness efforts, those metrics inevitably decline.” This relationship between brand awareness and performance has been observed beyond the B2B sector as well.

5. Mind Your Tone

In the face of economic volatility, advertisers should reevaluate the tone of their communications. During these periods, consumers are often more stressed and more deliberate about their spending decisions, making sensitivity in marketing communications crucial.

 “You want to be sensitive to what is happening and how it’s impacting people,” says McAdams. “It’s essential to stay aware and listen, as even a poorly chosen word or phrase could alienate your audience.”

To avoid this, McAdams emphasizes the importance of robust internal review processes. “Getting multiple perspectives on marketing and advertising materials before they go live helps ensure messaging stays relevant and resonates with audiences.”

Addressing Economic Volatility in 2025

Economic uncertainty presents challenges, but there are ways for advertising leaders to get ahead by taking a proactive approach. Scenario planning, prioritizing transparency, tracking competitors, learning from past downturns, and keeping an eye on tone can are key to navigating the current landscape with confidence.