Keeping Digital Ads Profitable in a Slow Economy
What works when buyers get nervous.
Welcome to The Paid Media Mix—your source for real-world insights on AI, ad strategy, and what’s actually working in today’s digital campaigns. In this edition, I’m sharing the exact strategic moves I used during COVID to help brands stay profitable in a cautious, price-sensitive economy. We once again find ourselves in an unpredictable economy.
Ad budgets are shrinking, but the pressure to hit performance targets hasn’t let up. I'm hearing the same concern from marketers across industries:
“We can’t afford ad dollars, but we still need results.”
This is exactly where your ad strategy needs to evolve, not retreat. I've been helping clients shift their approach to match today’s slower buying cycles, and the payoff has been clear: better efficiency, stronger intent signals, and smarter use of AI.
Here’s how to stay relevant and profitable, even as the market cools. 🥶
The Economy Has Shifted. So Should Your Ad Strategy.
As of March 31, 2025, consumer sentiment has taken a dive. The Conference Board Confidence Index is at 92.9, and the University of Michigan’s reading just hit 57.0, its lowest point in recent years.
Meaning? People are pausing, comparing, and thinking twice before buying.
What I’m seeing right now:
Spending hesitation: Purchases take longer. Decision cycles stretch out.
Price sensitivity: Value-based messaging wins. Flashy doesn’t cut it.
Lower brand loyalty: Shoppers are ready to switch for better deals or guarantees.
For advertisers, this isn’t a signal to pull back, it’s a signal to laser focus.
What’s Working Right Now: The Strategic Moves I’m Using with Clients
✅ 1. Reframe Your Messaging for Real-Life Priorities
Flashy “premium” language feels tone-deaf right now. Instead, lean into what people really care about:
Durability, reliability, and cost savings
Flexible payment options, price guarantees, or bundles
Clear, practical value that helps them feel smart for choosing you
Try this:
Swap “exclusive” or “luxury” for “smart investment,” “dependable,” or “built to last.”
Grounded messaging wins when budgets are tight.
✅ 2. Focus Your Budget Where ROI Still Lives
Now’s the time to cut the fat and double down on what works:
Shift budget to evergreen products or services
Prioritize regions less affected economically
Let automation do the heavy lifting like Google Ads bidding tools
Every dollar needs a job. Use your performance data like a hiring manager.
✅ 3. Optimize for High-Intent, Value-Focused Search Behavior
Searches are longer, more deliberate, and packed with comparison terms.
Consumers are looking for proof, not fluff.
What to do now:
Remove vague, low-intent keywords
Add terms like “solves for [pain point],” “affordable,” or “top-rated”
Support your ads with comparison pages and FAQs
This is about meeting people where they are in deep research mode.
✅ 4. Double Down on High-Intent Audiences
Fewer people are buying, but the right signals still matter:
Retarget previous site visitors and cart abandoners
Build custom audiences from high-engagement behaviors
Bid more aggressively on users showing buying intent
Precision matters more than reach right now.
✅ 5. Expand Reach Without Breaking the Bank
You don’t need to outspend your competitors when you can outsmart them:
Tap into lower-CPC channels like Microsoft Ads, Pinterest, and YouTube
Use Performance Max to uncover profitable placements
Create videos or carousel ads that focus on practical value
When others go quiet, your brand gets the spotlight.
🔁 What This All Comes Down To
In a slower economy, it’s not about cutting spend. It’s about cutting waste and increasing relevance.
Rethink your messaging
Refocus your targeting
Let automation and AI help you move faster and spend smarter
This is how campaigns stay profitable when the market cools.
If you found these insights helpful, imagine what we can achieve together. Let’s talk about how to apply these techniques to your campaigns.
