The Traditional Marketing Funnel Is No Longer Enough in a Tariff-Driven Economy
By Ken Harlan, founder and CEO, MobileFuse
The marketing funnel has long served as the foundation of digital strategy – guiding consumers from awareness to consideration to conversion. But in today’s global economy, where rising tariffs, inflationary pressures, and geopolitical shifts are reshaping consumer behavior and business priorities, marketers can’t rely on the traditional funnel alone.
Instead, advertisers must recalibrate their strategies to meet the moment – focusing more on community engagement, relevance, and measurable value, while navigating our complex landscape shaped by economic uncertainty.
Here are a few things brands and advertisers need to consider as we move through an era that doesn’t favor the traditional marketing funnel.
Tariffs Are Reshaping Consumer’s Outlook
The evolving tariffs have already sparked ripple effects in regards to consumer’s economic outlooks. In fact, The Conference Board’s Expectations Index – based on consumers’ short-term outlook for income, business, and labor market conditions – dropped 9.6 points to 65.2 in March, the lowest level in 12 years and well below the threshold of 80 that signals a recession ahead.
Even before the latest tariffs, brand loyalty was on shaky ground. A Criteo study found that 73% of US consumers are open to trying new brands, and 61% switched brands within the past year. Ongoing economic anxiety will only amplify this trend. With more at stake financially, consumers are prioritizing transparency, affordability, and mission-driven messaging. They’re making more intentional purchases, evaluating brands more critically based on quality, trust, and alignment with personal values.
We’ve actually seen this type of behavioral shift in recent history – notably around Covid. Brands and advertisers need to remember that uncertainty has a direct correlation with people’s propensity to spend and what they actually value. Brands need to demonstrate their value, and how they help and support their audiences in these moments. For example, a grocery brand could update their messaging and creative to be hyper-focused around when specific deals are available. They could also run a campaign that updates their audiences on the best times to shop for the best prices, etc.
The pressure is on for marketers to pivot messaging and deliver more meaningful engagements.
Rethinking Approaches
With the reshaping of purchase habits, marketing approaches need to evolve in lock-step, shifting from being focused around driving demand to deepening connections. It’s time to assess whether your product or service is a need or a want – and message accordingly. Audiences want to know how your offering fits into their new reality, and they’re increasingly loyal to brands that communicate purpose with clarity and consistency.
To cut through the noise, marketers should adopt a more holistic, full-funnel strategy – one that reaches across paid search, mobile, in-app, CTV, social, and email. Rather than relying on siloed tactics, this cross-channel approach helps brands to stay relevant in every moment that matters. It’s also worth reducing spend in areas that are no longer relevant. For example, brand advertisers in the entertainment industry should adjust their messaging to showcase more budget-friendly options, as people cut back spending on certain activities when times are tight.
Now Is Not the Time to Go Quiet
In addition to changing messaging and creatives, this is a moment where brands should not go quiet. It might seem logical to pull spending, or save it for a better day – however, history tells us brands who maintain advertising spend during economic downturns often emerge stronger. A report from Analytic Partners found that 60% of brands who increased media spend in the last recession saw a greater return on investment; additionally the report states brands who increased media spend during times of market uncertainty experienced 17% higher growth in incremental sales. In contrast, those that went dark suffered both short-term revenue loss and long-term declines in brand equity.
This underscores a simple but powerful point: pulling back on ad spend when consumers are paying close attention is a missed opportunity.
The brands that stand out aren’t the loudest, they’re the most relevant. As marketers rethink their go-to-market strategies, they should also consider how to serve their audiences better, not just sell to them. For brands willing to adapt, the opportunity to lead and win is still very much alive.