When economic uncertainty comes knocking, paid media budgets are often the first to feel the pinch. It makes sense to cut back on what we assume to be non-essential spending. After all, advertising feels like an expense that you can pause without immediate consequences. But here’s the thing: cutting your ad spend could make your brand invisible at a time when advertising “rental space” is more widely available.
Just because you remove your paid media budgets doesn’t mean consumers are going to stop buying, it just means they’re going to be more specific about what they buy, and who they buy it from. In a country where load shedding, the cost of living and economic instability already weigh on our purchasing behaviours, staying top of mind is critical.
As someone who’s been in the trenches of social media and digital marketing for years, I will tell you this: the businesses that continue to invest (smartly) in advertising during unpredictable times are often the ones that come out stronger on the other side, and this is why:
Let the data speak for itself
Research from the Harvard Business Review shows that companies that increase visibility during economic downturns often gain significant market share. In South Africa, this is particularly true in industries like retail and home improvement, where consistent advertising can create a competitive edge.
Research indicates that companies that continued to advertise during the 2008 recession experienced sales 256% higher than those that ceased advertising. Additionally, a different study found that brands that maintained or increased their marketing budgets during recessions saw up to a 5% increase in market share.
What does this tell us? Paid advertising isn’t a luxury—it’s a necessity. It’s not just about surviving the downturn but setting your business up to thrive once the economy rebounds.
Visibility is everything
Staying visible in tough times ensures your brand remains relevant when it matters most. Removing yourself from the advertising pool doesn’t mean consumers stop shopping—it just means they’ll choose someone else, and when you eventually want to turn your ads on again, you’ll find it’s harder to bounce back.
Think about your own habits: how often have you doom-scrolled Instagram during load shedding, searched for “best local deals,” or hunted for value-driven products? If your business isn’t visible in those moments, your competitors will gladly take your place.
There’s opportunity in the silence
When brands retreat, advertising space becomes more accessible, and costs can decrease. This quieter environment presents a unique opportunity to capture your audience’s attention with fewer distractions. While competitors go quiet, you can continue building brand awareness, loyalty and trust.
It’s a bold move to keep spending when everyone else is cutting back, but bold moves often lead to big wins. Think of it this way: the market won’t stay down forever. When things pick up again - and they will -you’ll already be top of mind while others attempt to regain their footing.
Advertising on a Budget? Absolutely!
The good news is you don’t need a Fortune 500 budget to make an impact. With tools like Meta Ads Manager and Google’s PMAX campaigns, you can target your audience down to their suburb and shopping behaviours.
Even in challenging times, customers don’t stop buying—they’re just looking for value. If used effectively, even a low-budget ad campaign can drive real results. For instance, businesses can focus on high-intent audiences through retargeting campaigns that engage warm leads. By prioritising cost-effective platforms with high engagement, such as Facebook, YouTube and TikTok, and tailoring your messaging to emphasise value and affordability, you can maximise every rand spent.
Strategic spending, even on a limited budget, will help you capture today’s opportunities while positioning your brand for sustained growth when the economy rebounds.
Final thoughts
Economic instability will always challenge businesses, but cutting your paid media budget isn’t the answer.
The key to navigating tough times lies in staying visible, adapting your strategies, and making bold, informed decisions. It’s not just about weathering the storm—it’s about positioning your brand to lead when conditions improve. The businesses that continue to invest in advertising during downturns are the ones that come out on top, with a loyal customer base and a competitive edge. As the economy rebounds, those who have remained visible will be the first to reap the rewards.
Do you need to rethink your paid advertising strategy in 2025?
You know who to call…