Economic uncertainty is a reality every B2B business leader must face at some point. Whether it’s recession fears, inflation, or shifting market dynamics, these challenges can feel a little overwhelming. But within every challenge lies an opportunity - if you know where to look.

The UK entered 2025 facing a delicate economic situation. With GDP growth forecasted at just 1.3%, down from earlier projections, and business confidence at its lowest level on record, the economy remains fragile. While a recession is unlikely, recovery is slow, with risks from a weakening Eurozone, potential US trade policy fallout and rising National Insurance contributions in April adding further pressure. Inflation is also set to rise above 3% by mid-2025, driven by energy costs and global trade challenges. At the same time, shifting consumer behaviour is reshaping markets, with consumers prioritising value, cost-effectiveness, and transparency from brands above all else.

All in all, it's a challenging year ahead for businesses that must navigate the growing minefield of a tricky economic landscape.

One of the most powerful tools at your disposal in uncertain times is market intelligence. For sales and marketing professionals, this means moving beyond guesswork and embracing data-driven decision-making. It’s about understanding which industries are resilient, which decision-makers are open to new opportunities, and how to position your offerings in a way that resonates with evolving priorities.

You have to become essential, not inconsequential.

With the right insights - and the right tools to gather them - you can adjust your marketing and sales strategies to navigate challenges more effectively, helping your business stay on track when the going gets tough.

Media Buyers: Trying to find stability in shifting advertising budgets

The challenge

When economic uncertainty strikes, advertising budgets often take the first hit. Brands tighten their belts, and media buyers are left scrambling to figure out which companies are still willing to invest. As a result, the competitive landscape becomes even more challenging, and only the most strategic players come out ahead.

Recent data paints a clear picture of the challenges. The Q4 IPA Bellwether report shows that while UK marketing budgets saw a slight uptick in late 2024, main media budgets took a significant hit. Only 1.9% of businesses reported increased marketing spend - a far cry from the 14.7% growth seen in 2023. This points to a much more cautious spending environment, especially in traditional channels like video advertising, which experienced its first decline in four years, dropping by 10.7%.

Paul Bainsfair, IPA Director General, acknowledges that cuts to main media budgets are typical in a bad economy, but affirms that these remain the most effective channels for long-term brand growth. This creates a tricky situation for media buyers: balancing the immediate need for short-term savings with the challenge of finding brands still willing to make long-term investments. The question becomes: how do you identify those businesses that are willing to spend, even in a cautious market?

The opportunity

In times of uncertainty, not all industries are created equal. Some sectors, like healthcare, technology, and essential retail, often remain resilient. The challenge for media buyers is identifying these opportunities quickly and efficiently. This is where market intelligence becomes invaluable. By understanding which brands are still investing and which people are driving those decisions, media buyers can focus their efforts where they matter most.

Actionable tips

• Focus on resilient industries. As we just mentioned, some industries are more resilient to economic downturns than others. For example, healthcare and e-commerce saw significant growth during the pandemic. When the economy is on tenterhooks, it’s smart to focus on industries that are still going strong. Keeping an eye on advertising trends can help you spot brands that are continuing to invest in marketing, giving you a better chance of securing new business.
  • Pro-tip: Tools like ALF Insight offer real-time insights into industry trends and advertising spend for thousands of brands.
• Build relationships with decision-makers. You’ll need to rely on these relationships even more than usual when times are tough, as getting your foot in the door will be harder than ever. Returning to these reliable connections can provide a steady stream of business. So, get that direct line to the decision-maker (which you can find with ALF) and customise your pitch to address their unique pain points, showing them that you're invaluable to keep around, even in a challenging market when belts are tightening.
• Adapt to shifting priorities. Brands may shift their messaging during a downturn, focusing on value, reliability, or community impact, as these qualities resonate more with consumers during economic downturns. You need to tailor your proposals to align with the brand’s current focus. By showing you understand their evolving priorities, you can position yourself as a partner who can help them stay relevant and competitive, even as the market landscape changes.

Agencies: Reinventing creativity in a cost-conscious world

The challenge

Agencies are no strangers to the pressures of economic uncertainty. Clients may delay campaigns, reduce budgets, or even consider switching agencies to cut costs.

The Q4 IPA Bellwether Report highlights a 4.3% drop in main media ad spend in 2024, with businesses pulling back on investments, particularly in traditional advertising. This has created more competition for a shrinking pool of ad spend, making it harder for agencies, especially smaller ones, to stand out. Clients are now looking for more creative, cost-effective solutions that deliver real results, putting pressure on agencies to constantly innovate and focus more on targeted, measurable campaigns rather than long-term brand-building efforts.

The bottom line for agencies is that they are expected to deliver more value with fewer resources, all while staying ahead of their competition. Simple, right?

The opportunity

Economic downturns often force brands to rethink their strategies, creating opportunities for agencies that can offer innovative yet economical solutions. If you can find that niche to stand out and offer the right pitch at the right time, you’re golden. You also need to understand which brands are still investing in marketing. But with the right insights, agencies can position themselves as indispensable partners during tricky times.

Actionable tips

• Understand your client’s changing needs. As brands become more cautious with their marketing spend, they may shift their focus to activities that drive direct, measurable outcomes. Think performance marketing, lead generation, and customer retention campaigns. Agencies that can demonstrate their expertise in these areas will be well-positioned to retain and grow their client base.
• Monitor long-term relationships for new opportunities. Many brands work with the same agencies for years, but economic pressures can lead them to reassess their partnerships. They may be considering a change but haven’t yet taken the leap. By identifying these opportunities early, you can position your agency as the fresh perspective they need.
  • Pro-tip: You can view all the agencies a brand works with by checking their profile on ALF Insight.
• Stay agile and diversify services. During tough economic times, agencies that are able to pivot and expand their services - especially in areas like digital transformation, AI solutions, and sustainability - will be better positioned to stay ahead. Being proactive and ready to adapt to these changes will set you apart from the competition.

Marketing Services Providers: Delivering value when it matters most

The challenge

In tough economic times, marketing budgets are often the first to be slashed. As budgets get tighter, businesses become more selective with where they spend, making it harder for MSPs to secure new clients. The rise of in-house marketing teams isn’t helping this, with 38% of companies that made the switch to in-house citing cost savings as a major benefit. In fact, cost efficiency is often seen as the biggest advantage of having an in-house team, leaving MSPs to compete for a shrinking pool of outsourced work.

But cutting marketing spend altogether can be a short-sighted move. While it may seem like a quick fix, it can actually harm long-term growth. Companies that keep investing in marketing, whether in-house or with agencies, are more likely to stay visible, keep connecting with customers, and drive revenue, even when times are tough. Take United Airlines, for example. At the start of the pandemic, they doubled down on one of their largest advertising campaigns ever. Maggie Schmerin, United's head of global advertising, explained that this bold move helped the company “forge ahead”.

The opportunity

During a recession, businesses that maintain or increase their ad spend see a 2.5x boost in sales after the economy recovers compared to those that cut back. Ergo, cutting marketing right away during tough times might be a hasty decision. By highlighting a long-term growth mindset, you can show potential clients that your services aren’t something for the chopping block when budgets get tight, but a valuable resource that helps them stay ahead. The key is identifying which brands are still spending and tailoring your offerings to meet their specific needs, which requires a deep understanding of industry trends and decision-maker priorities.

Actionable tips

• Personalise your targeted approach. Decision-makers are far more likely to respond to pitches that feel personal and relevant to their unique needs. By understanding their roles and challenges, you can tailor your proposals to show that you've done your homework and are offering real solutions. It's also key to make sure you're reaching out to the right people. By connecting directly with CMOs or Heads of Marketing, you can present solutions that truly resonate with what they’re looking for, making it more likely they’ll want to work with you.
  • Pro-tip: ALF Insight provides access to decision-makers at thousands of companies, giving you up-to-date contact information at your fingertips.
• Emphasise cost efficiency. As budgets get tighter, businesses are looking for affordable solutions that deliver real, measurable results. Marketing services that offer clear, actionable strategies and can show their impact on the bottom line have a better chance of winning business. By focusing on campaigns or tools that demonstrate ROI, like sales automation or data-driven promotions, you can position yourself as an essential partner during rocky times.
• Identify industries that continue to grow. We mentioned this before, but it bears repeating - while some sectors contract, others continue to expand, and it’s essential to understand which industries are maintaining or even increasing their marketing spend. You can easily find this info by checking out ALF’s Top Spending Market Categories Report. Focus your efforts on these resilient sectors to maximise your chances of success.

Partnerships: Building mutually beneficial relationships

The challenge

Sponsorship teams in sports and charity sectors are under pressure as businesses tighten their marketing budgets. Sponsorships are often seen as a “nice-to-have,” making them one of the first things to be cut during tough times. For instance, in 2020, there was a projected sports sponsorship decrease of $17.2bn due to the COVID-19 pandemic.

Charities fair just as badly as both businesses and individuals become more cautious with their spending. Brands often move away from long-term sponsorship deals, opting instead for short-term campaigns that promise quick, measurable results. This makes it harder for charities to secure the consistent support they need. On top of that, donor fatigue can set in - history shows that during economic downturns, donations drop. For example, in the aftermath of the 2008 financial crisis, giving fell by 7%, with another 6.2% drop in 2009.

The opportunity

When budgets tighten, sports properties and charities find new ways to bring in revenue. Take the NBA’s on-court logos and the NHL’s helmet decals - both launched during the pandemic as fresh sponsorship opportunities to keep funds flowing. Charities, too, have opportunities to form valuable partnerships, particularly through cause-related marketing and corporate social responsibility initiatives. For larger businesses, ending these partnerships could be seen as bad PR, meaning there are still chances to collaborate and make a positive impact.

Actionable tips

• Focus on brands with strong CSR initiatives. In uncertain times, many brands want to connect with causes that matter to their customers. Corporate social responsibility is becoming more important, and companies that prioritise sustainability, diversity, and community engagement are more likely to invest in sponsorships that reflect these values. By identifying these brands and tailoring your proposals to match their focus, you'll boost your chances of success.
• Timing is everything. Sponsorship deals often follow an annual cycle, so understanding when a brand’s current agreement is up for renewal or when they’re reassessing their budgets is crucial. Timing your approach just right can help you connect with the right brands at the perfect moment.
  • Pro-tip: ALF offers details on over 6,000 partnerships, including the companies involved and, importantly, when the partnership is set to end.
• Demonstrate tangible benefits. Brands always want to see clear ROI. Highlight how partnering with your organisation can deliver measurable results, whether through increased visibility, customer engagement, or community impact. That way, you’re positioning your partnership as a strategic investment that delivers sustained value, even in challenging economic conditions.

Conclusion: Turning uncertainty into opportunity

Economic uncertainty is inevitable, but it doesn’t have to hold your business back. By staying agile, data-driven, and focused on what really matters, you can find new opportunities even in challenging times. The key is to be proactive - adapting to change, staying resilient, and making smart, informed decisions. Whether you're a media buyer, agency, marketing services provider, or partnership-led organisation, having the right insights can make all the difference. With tools like ALF, you can navigate uncertainty with confidence and keep moving forward.

Want to see for yourself? Book a demo with ALF Insight and discover how we can be an invaluable asset to your organisation.