While the stock market has been on fire this year, economists warn that stock-market performance is not how we assess the overall health of the economy. And it turns out other key economic indicators are pointing to a downturn. In fact, the agencies and clients I speak with regularly tell me they are already starting to feel the economy weaken. Less advertising business for agencies and freelancers because their clients are understandably getting more nervous every day. Consider these key economic indicators:

• The GDP growth rate slowed to a disappointing 1.6% in Q1 2024, the weakest pace in nearly two years.

• Consumer spending, which accounts for around 70% of GDP, is expected to moderate further as pandemic-era savings dwindle and real disposable incomes remain stagnant.

• Related, and the whopper, inflation remains stubbornly high, rising 3.1% in Q1 2024. Worse, since February 2020, consumer prices have jumped 20.8 percent, a Bankrate analysis of Bureau of Labor Statistics data shows.

It’s time for brands to get ready for this downturn by finding smart, strategic ways to save budget, but also maintain a strong presence. It’s also time for agencies to help them.

7 Ideas brands Can deploy right now.

Idea 1: Unify Brand Messaging

Having a clear, consistent brand message that resonates with your target audience is crucial during economic downturns. It’s expensive to run scattered, one-off campaigns that lack cohesion and do not add up to anything. Avoid random acts of marketing with a unified brand idea. Every company should have a brand idea regardless of economic situation, but it’s especially important in a bad economy.

Idea 2: Re-evaluate Ad Plans and Budgets

Economic downturns are a good time to take a fresh look at advertising strategies and budgets. Explore more cost-effective channels, negotiate better rates with media partners, and prioritize high-ROI tactics. Consider shifting more resources to digital advertising, which often has lower costs and better targeting capabilities. Digital is a good way to maintain brand presence for less.

Idea 3: Hire Smaller, Hungrier Agencies

Small-to-medium sized advertising agencies are typically more nimble, have lower overhead costs, and may be willing to offer more competitive pricing to win new business. They also tend to be more hands-on and provide personalized and very senior attention, which can be valuable during challenging times. I work with smaller agencies and know they’ve been feeling ignored the last couple years. Now is the time to get more from your (smaller) agency.

Idea 4: Focus on Customer Retention

File this one under “Don’t Lose Business You Have.” When times are tough, it's often more cost-effective to use marketing dollars to retain existing customers than acquire new ones. Develop loyalty programs, offer incentives, and prioritize exceptional customer service to foster long-term relationships and repeat business.

Idea 5: Leverage User-Generated Content

User-generated content (UGC) can be a cost-effective way to create authentic, relatable advertising materials. Encourage customers to share their experiences with your brand, and repurpose their content across your marketing channels. This can help build trust and credibility while saving on production costs. Perhaps make it assignment #1 for your new smaller agency.

Idea 6: Explore Strategic Partnerships

Pool your marketing dollars with complementary brands to reach new audiences and share marketing costs. Co-branding campaigns, cross-promotions, or influencer collaborations can be effective and cost-efficient during economic downturns. Agencies, this idea is a good one to proactively bring to your clients.

Idea 7: Embrace Agility and Adaptability

Economic conditions can change rapidly, so it's essential to remain agile and adaptable with your advertising strategies and dollars. Plan ahead, allocate dollars, but then continuously monitor market trends, consumer behavior, and campaign performance, and be prepared to pivot and adjust your approach as needed.

A marketing problem is just the absence of an idea.

Ideas are never as important as they are during an economic downturn. Gotta outthink these negative forces to stay ahead and in control.

Email me at Ideasicle X to help you with any of the above. I can have a world-class team of four advertising creatives coming up with ideas for your brand within a day.

Nothing is unthinkable! Especially in an economic downturn.

Will Burns is a Fractional Brand Officer and the Founder & CEO of the revolutionary virtual-idea-generating company, Ideasicle X. He’s an advertising veteran from such agencies as Wieden & Kennedy, Goodby Silverstein, Arnold Worldwide, and Mullen. He was a Forbes Contributor for nine years writing about creativity in modern branding. Sign up for the Ideasicle Newsletter and never miss a post like this.