As we move through another period of economic uncertainty, many small business owners in the fitness, health and wellness, beauty, and hospitality industries are wondering: Should I keep advertising? It might feel counterintuitive to invest in marketing when costs are rising and customer spending may be tightening. But history, data, and modern trends all point to the same answer: Now is the time to stay visible.
While this downturn is not expected to mirror the COVID-19 pandemic, there are lessons we can carry forward. During 2020, brick-and-mortar businesses had to pivot fast. Fitness instructors took to Zoom, estheticians started selling curated skincare kits online, and restaurants shifted to delivery and online ordering. That shift wasn’t just about survival – it was a transformation in how small businesses connect with customers. And while today’s challenges may be rooted in inflation, interest rates, and global supply chain delays rather than public health, the ability to adapt and show up where your audience is remains crucial.
Unlike COVID, this economic period likely won’t result in mass closures or lockdowns. Foot traffic will continue, and demand for services will still exist. However, disruptions in inventory and supply chains could trigger ripple effects: retailers unable to stock bestsellers, service providers seeing slower retail sales, businesses laying off staff to compensate for rising costs. These shifts can impact consumer sentiment. However, they also open new doors, such as developing products with locally sourced materials, offering budget-friendly services online, or finding creative ways to build community and brand trust. That’s where consistent advertising plays a key role.
You Have Options: Four Ways to Approach Paid Marketing
When it comes to your paid marketing strategy during uncertain times – or even during seasonal downturns that you regularly anticipate – you don’t have to take an all-or-nothing approach. There are four smart ways to navigate this:
Maintain your current marketing budget and keep up a steady pace. This allows you to retain your audience visibility, build brand recognition, and stay competitive.
Scale back slightly to protect profit margins while still running essential campaigns. This way, you continue to show up in front of your ideal clients without entirely disappearing.
Increase your budget strategically to take advantage of reduced competition. When other businesses pull back, there’s often more affordable ad space and a bigger opportunity to grab market share. You might be able to secure lower cost-per-click rates or get better placement in front of your target audience.
Pause paid advertising and rely solely on organic marketing. While this may be necessary in some situations – especially if it’s the difference between keeping your business open or not – it’s often not the most strategic choice. Going dark with paid efforts removes your brand from key customer touchpoints when people are still actively browsing and buying. Relying on organic only puts you at a significant disadvantage if your competitors continue advertising.
Each of these options helps you stay engaged without losing momentum, and you can adjust them month to month depending on performance and your overall business needs.
Visibility Wins, Even in Slow Markets
When budgets are tight, consumers are more intentional with their money. That means they spend more time researching before buying or booking. You risk being overlooked entirely if your business isn’t consistently showing up on Google, Instagram, TikTok, or in their inbox.
Here’s the truth: If you pause your marketing, but your competitors don’t, you’ve ceded that space. And consumers don’t know you’re being cautious with your budget. They just see who’s active and who’s not. According to a 2008 study by Millward Brown, brands that increased or maintained their advertising during a recession saw significantly higher sales growth than those that cut back.
Advertising Costs Often Drop During Downturns
In uncertain times, fewer businesses compete for ad space, which can drive costs down. That means your dollar may go further today than it did six months ago. A study from Analytic Partners found that brands that maintained or increased their marketing spend during the 2008 recession saw an average 17% increase in ROI.
If you run Facebook, Instagram, or Google Ads, you may already be noticing lower CPMs (cost per thousand impressions). Less competition often equals more efficient campaigns – a win for small businesses who want to stay top-of-mind without blowing their budget.
Pivoting Creates Opportunity
Economic shifts demand flexibility. During COVID, many small business owners discovered that virtual services could scale in ways in-person services couldn’t. A fitness studio with a capacity of 10 people per class suddenly had the opportunity to stream to 100. If you’re seeing membership cancellations or reduced bookings, could you introduce a virtual option? One where 100 people pay $5 per class instead of 10 people paying $20? You end up with the same (or more) revenue, and a broader reach.
Similarly, beauty professionals could offer virtual consultations, sell products via an online store, or create DIY facial kits. Restaurants and cafes could introduce subscription boxes or offer cooking classes online. These adaptations all benefit from smart advertising, whether organic (SEO, email, social) or paid (ads, boosted content).
You Build Trust by Showing Up
Advertising isn’t just about selling. It’s about building relationships. When you continue creating content, posting updates, and running campaigns – especially in uncertain times – you tell your audience: We’re here. We’re consistent. We’re not going anywhere.
That kind of reliability builds brand loyalty. And trust leads to sales. Even if someone doesn’t buy from you today, they’ll remember your name when they’re ready.
You Get Real-Time Feedback
When you keep advertising, you get data: what people are clicking on, which offers convert, and what services are gaining interest. That insight is gold during times of uncertainty. It allows you to make smarter decisions about where to invest next -or what to pause. Businesses that go dark lose this valuable feedback loop.
Economic Shifts Create Space for Innovation
Supply chain disruptions are real, and they will impact retail and service businesses. But they can also push us toward innovation. Can you source materials locally if your go-to supplier is out of stock? Can you design a new product or offer a simplified version of a high-end service that still meets customer needs?
These shifts often spark creativity, but it takes marketing to tell that story, showcase those offers, and reach the right audience.
Stay Consistent, Stay Visible
Marketing in uncertain times isn’t about fear but resilience and readiness. Your audience still wants what you offer. They might just need to see it in a different way, or at a different price point. If you stay present, stay nimble, and keep showing up, you can come through this season stronger than before.
Because while your business may be small, your impact can be big. And advertising helps make sure people see it.