The new tariffs announced recently are making waves throughout the U.S. economy, impacting both consumers and businesses of all sizes. Let’s break down what this means in a straightforward way and see how advertising and marketing can help you navigate these turbulent waters.
With these new tariffs mean higher prices on imported goods like electronics, cars, and even everyday essentials. For example, a 25% tariff on imported cars could make your next new vehicle roughly $4,000 more expensive. This kind of price jump can push consumers to delay big purchases or seek out less expensive alternatives, reshaping buying habits significantly. And this is not isolated to just large purchases; almost every product or service we buy in the United States will be impacted by these tariffs, dynamically changing how we make all purchase decisions going forward.
If your business relies heavily on imported products or materials, these tariffs are probably causing some headaches. Higher costs mean tighter profit margins and potential price hikes, especially tough for industries like automotive and manufacturing, where global supply chains are crucial.
But it doesn’t stop there. Electronics, like the iPhone in your pocket or the Apple Watch on your wrist, will be more expensive. Rise in the morning with coffee, and cap off a long day with a glass of wine? Yep, it will cost you. Too expensive to purchase a new car and now considering delaying your purchase until things settle? Smart move. But wait! The cost to service your vehicle for longer will also sky rocket.
Now, there may be a flip side - domestic producers might see increased demand in their goods as imports become pricier. While this sounds promising, keep an eye on the broader picture: international trade retaliation could complicate matters further.
The ripple effect of tariffs doesn't stop at goods - it also affects the advertising and marketing industries. Businesses experiencing higher production costs often cut advertising and marketing budgets to manage expenses. These budgets always are the first in line to be reduced, or cut entirely. I have seen this materialize many times during my 15 year career in the industry.
The COVID pandemic is a recent and significant example of how rapidly shifting consumer behaviors impact marketing strategies. Initially, many businesses slashed advertising budgets as the world stopped spending and isolated itself. However, those who spotted an opportunity leveraged increased digital media consumption - especially streaming as I found myself at a “live” concert on Twitch a few times - to engage consumers more cost-effectively. Paid physical advertising (point of sale ads in malls or billboards off of major highways) obviously were less relevant as people stayed home. But these “quarantine orders” lead to much more engagement on digital platforms, especially Social Media, thrived as people connected online for information, entertainment, and support.
Today, it is expected that major digital advertising platforms, including companies like Meta and Amazon, could face declines in ad revenue as businesses scale back their marketing expenditures. But reduced ad spending can lead to diminished brand visibility and customer engagement, potentially impacting overall sales. Companies must carefully analyze and adapt to emerging trends, resisting knee-jerk reactions to economic pressures. Savvy marketers who recognize these shifts early can transform potential setbacks into genuine opportunities for growth and increased consumer engagement.
In uncertain economic times, strategic marketing isn't just helpful - it's essential. Keeping your advertising going (or even ramping it up) while competitors scale back can boost your brand visibility and market share. Consumers may slow down spending or delay big purchases, but that doesn’t translate into stop spending entirely. As price becomes an even more significant factor when making purchasing decisions, it is critical to ensure your brand remains top-of-mind, emphasise market differentiation, and spend even more time minimizing waste. This requires thorough marketing research, data analysis, and strategic thinking to remain ahead.
Effective advertising clearly communicates your value, highlighting affordability and quality - exactly what budget-conscious consumers are seeking right now. Don’t underestimate digital marketing and data analytics; these tools can quickly pinpoint changing consumer behaviors and help you respond with tailored messaging.
At Neural Partners, we're experts in using AI, automation, and precise data analysis to fine-tune your advertising and marketing strategies. We help you quickly adapt to shifts in consumer behavior caused by these economic changes. A few strategies include:
For example, we work with a Neural Partner who sells premium goods and wants to grow their digital footprint and online sales. We quickly identified a pivot was needed as demand for premium goods may decline due to cost concerns. But competing with the big box stores locally by decreasing prices wasn’t a viable option. Instead, we leveraged our AI system(s) to isolate new markets and expand reach beyond the local community, all while maintaining the premium brand recognition. We also identify additional opportunities, such as: improving personalized website experiences, increasing organic content marketing, shifting budgets to performant channels and strategizing other creative opportunities to bolster online sales while navigating through unpredictable market trends.
Our advertising and marketing services range from targeted optimization and content strategies to automated, personalized campaigns designed to connect deeply with your audience. Our technology and process were designed to be nimble and adapt to changes in the market. With Neural Partners by your side, you can confidently navigate through the tariff turbulence, turning challenges into clear opportunities for growth.
Let’s make sure your business doesn't just survive - but thrives - even in these changing economic times. Contact us today for a strategy call today.
