On August 5, 2024, the Dow experienced its worst day since the end of the Covid-19 pandemic in 2022. Some companies’ stock value fell by 4 to 5%, reminding investors of the “Black Monday” stock market crash of 1987. Then, to some experts’ surprise, the market bounced back fairly quickly…for now. By early September, the Dow closed at record-high numbers, leaving investors and companies unclear on the short- and long-term outlook for the economy.

Of course, one bad day for the stock market does not automatically signal a volatile economy. However, there are several other economic factors at play that are causing US companies to approach the end of the year and their plans for 2025 with caution.

Throughout 2024, the Federal Reserve opted to keep interest rates steady, despite many economists’ continual predictions that they would finally be lowered. Though the Fed ultimately cut rates in September, the fact that interest rates remained so high for much of the year is a sign they’re still worried about stubborn inflation. If interest rates remain lowered and inflation is kept at bay, it may bolster consumer spending in 2025; if rates or inflation rises, consumer spending may take a hit.

Additionally, 2024 is an election year. (As if you could have forgotten, right?) Historically, presidential election years tend to see an unstable stock market – particularly if the race has been marked with unpredictability and uncertainty, as this year’s race has certainly been. When consumers aren’t confident about the future of the country, they’re more likely to hold back on larger or unnecessary purchases. The 2025 economy may also react differently depending on which candidate wins this November.

Creating a Flexible 2025 Marketing & Advertising Plan

As we approach the end of the calendar year, many businesses will find themselves wondering how they can adapt their 2025 plans to a market that is likely to be volatile and unpredictable.

These fickle economic conditions often put marketing and advertising teams on high alert. In many industries, a volatile market will produce slowing sales and decreased customer loyalty from nervous consumers. In 2022, only 12% of consumers stated they would maintain their usual shopping behaviors in the event of a recession.

When economic projections look unstable, the marketing team’s primary focus is to help customers feel secure and work to keep sales steady. To achieve sales success and build customer loyalty under these conditions, businesses’ marketing plans need to be as malleable and resilient as the market itself.

Marketing Tactics to Prepare for a Volatile Year

For now, it’s hard to predict consumer behavior or market conditions for 2025. To strengthen customer relationships, solidify brand awareness, and set up opportunities for growth if all goes well, marketers will be best served with a 2025 plan that prioritizes adaptability and scalability.

Optimize Ad Spend

When your team is tasked with creating a marketing plan for a volatile market, the first step is to consolidate ad spend and prioritize media platforms that historically generate the best results. Doubling down on tried-and-true strategies reduces risk during an unpredictable market and can assure the company that the spend will produce a strong ROI. If market conditions improve throughout 2025, your brand can quickly scale up its spend and feel confident that the campaign will deliver even stronger sales. The growth driven by these strategic investments will also provide advantage over more conservative competitors who slashed ad spending altogether.

Conversely, risky investments and ad platforms that lack proven results must often take a backseat during an unsteady stock market. When the economy settles back into a predictable pattern, it’s more advantageous for companies to venture into new technology or other emerging tactics with big potential returns. Until then, companies typically see more success sticking with their most reliable strategies and scaling up or down as needed.

Reward Loyalty

Repeat customers are the best customers in a volatile market. According to Forbes, the probability of landing a sale with a repeat customer is 60 to 70%, compared to 5 to 20% for new prospects. Solidifying your reliable group of customers who repeatedly purchase your products creates stability for the company – and stockholders. Campaigns targeting existing customers are also more likely to produce a higher ROI, because it costs less to generate repeat purchases than it does to seek out brand-new customers.

To drive those repeat purchases, consider incentivizing previous customers by delivering exclusive offers, such as a buy-one-get-one discount or a loyalty program that offers rewards in exchange for multiple purchases. These offers are appealing to consumers, who feel like they’re getting a better value for their dollar, and still encourage or require multiple purchases, which helps create more loyal customers.

Prioritize Editable Digital Ads

Over the past two decades, much of the advertising market has shifted from traditional media to digital media, such as social media sites, television streaming, and music streaming services. According to Statista, digital advertising now represents 67% of all ad revenue worldwide. One of the biggest benefits of advertising with digital media is that messages can be edited and updated at any time. If your team finds that the message you selected isn’t resonating with consumers, or if you want to swap in an ad that better addresses recent economic developments, you can do so instantly. The digital media ad strategy helps prevent wasted spend from long-term ad buys that prove ineffective and can also allow for more specific messaging around timely topics.

Because digital media is so adaptable, your team can also decide quickly to scale the frequency and reach of your ad campaign up or down. If market conditions fluctuate, your brand can be nimble and flexible in its response, either conserving resources or taking advantage of sudden increases in demand.

Add Stability

For many companies facing an uncertain outlook in the economy, their marketing goals often shift to focus on preservation and stability. When the stock market takes a dip, we often hear financial experts remind investors to ride the wave and avoid making panic-driven decisions, which typically lead to greater losses long-term.

The same strategy applies for brands considering their marketing strategy. Maintaining a consistent marketing message during unstable economic conditions can help provide consumers with comfort and familiarity. These messages tell customers that while the world may feel unstable, your brand is still here for them and will provide the same quality and service that they’re used to. That sense of comfort and security is more likely to support the company’s overarching initiatives – to maintain the existing customer base and keep brand awareness stable.

For brands looking for a long-term solution to provide a more flexible marketing plan, working with an agency partner may provide more benefits. Utilizing a marketing and advertising agency will allow you to scale talent and resources up or down without impacting your own company’s payroll or internal morale. Additionally, the experts on your agency’s marketing team will be able to help identify ideal times to increase spend or scale back to only the most reliable strategies. Learn more about the advantages of working with an agency partner at https://thinkradius.com/we-deliver/.