Turning Headwinds into Momentum: What’s Next for Digital Advertising Amid Tariffs and Economic Shifts

Smartly
May 15, 2025

Navigating Uncertainty with Confidence: Why Now Is the Time to Double Down on Digital

The global economy is in a constant state of flux. With the evolving impact of tariffs, rising costs, and shifting consumer behavior, brands across every industry are navigating a wave of uncertainty. But if there’s one lesson from past disruptions, it’s this: in moments of volatility, the brands that move with agility, not hesitation, are the ones that come out ahead.

What History Teaches Us

Let’s rewind to 2020. In the early days of the pandemic, ad spend dropped sharply. CPMs (cost per thousand impressions) plummeted as businesses paused campaigns and consumers stayed home. But even amid economic upheaval, one thing remained constant: people spent more time than ever engaging with digital content, especially on social media and video platforms.

Smart marketers saw this as an opportunity, not a roadblock. They pivoted quickly, meeting consumers where they were and adapting messaging to address new realities. Those who doubled down on digital didn’t just weather the storm—they captured attention, gained market share, and drove measurable ROI. In fact, one Smartly client who leaned in during this period saw, on average, a +275% lift in ROI.

Today, we’re seeing similar signs of change. With threats of broad-based tariffs reshaping trade dynamics and economic forecasts pointing to potential slowdowns, businesses are once again asking: How do we move forward?

The Smartly Answer: Move Forward with Purpose

We’re not waiting to react. At Smartly, we’re helping our customers take proactive steps now to stay ahead—no matter what the next quarter holds. Whether you're facing higher costs, tighter margins, or shifting consumer behaviors, here’s what our experience—and the data—tells us:

1. Digital Delivers Efficiency and Flexibility

When consumer confidence is shaky, digital channels offer cost-efficient, performance-driven opportunities. You can shift budgets in real time, test creative variations quickly, and reallocate spend toward the highest-performing audiences and placements. Smartly’s cross-platform predictive budget allocation (xPBA) drives lower-funnel efficiency, while Brand Pulse ensures every advertising dollar works harder, measuring and maximizing real-time reach, frequency, and attention across channels. Together, they don’t just help you adapt, they help you outperform.

2. Stay in the Market to Protect Brand Equity

History shows that brands that invest during uncertainty don’t just survive, they build lasting momentum. Companies like P&G and PepsiCo didn’t just gain a lift during the pandemic; by continuing to spend when others pulled back, they secured both short-term market share and long-term brand strength. Today, brands can take a similarly proactive approach with Smartly’s Brand Pulse, an always-on view of brand health that helps identify risks early, surface opportunities fast, and guide smarter top-of-funnel decisions. Because relevance isn’t just won in recovery, it’s built in real time.

3. Adapt Your Message to Meet the Moment

Today’s consumers are savvy and sensitive to tone. Messaging must be timely, transparent, and relevant. Smartly’s creative tools help brands dynamically adapt messaging based on real-time signals, enabling you to meet your audience where they are with messaging that resonates now, not last quarter.

Built for Moments Like This

Smartly’s platform was designed for agility—automating the manual, streamlining the complex, and helping brands focus on what drives results. With AI at our core, we help you make smarter decisions, faster. From managing omnichannel campaigns to refreshing creative before fatigue sets in, our tools ensure every dollar works harder.

Markets will shift. Expectations will rise. But your ability to lead strategically, confidently, and creatively should remain constant. That’s what we’re here to support.

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