By Vicky Sidler | Published 30 April 2025 at 12:00 GMT

If you feel like your marketing budget is suddenly shrinking faster than a wool sweater in a hot wash, you are not imagining things.

Thanks to rising global tariffs, the cost of doing business is climbing—and small businesses are feeling it most. According to a Bloomberg report, advertising firms are already bracing for a pullback in client marketing spend as industries like automotive and retail tighten their belts.

Translation: when businesses are paying more to import goods, they are spending less telling people about those goods.

But while some companies are curling up in a ball and hoping it passes, smart small businesses are getting scrappier, sharper—and dare I say, even savvier.

How Tariffs Are Squeezing Small Businesses

Higher tariffs mean higher costs on everything from raw materials to finished products. And when margins shrink, marketing budgets are often the first thing to get trimmed—usually with the precision of a toddler using scissors.

What does that mean for you?

• Less room for spray-and-pray advertising

• More pressure to show a clear return on every marketing dollar

• Greater need to connect directly with customers without throwing money into the void

In short: this is not the time for marketing guesswork.

How to Market Smarter (Not Louder)

As a StoryBrand Certified Guide and Duct Tape Marketing Consultant, I can tell you: tough markets reward clarity and strategy, not panic.

Here’s how small businesses can stay competitive even when budgets are under pressure:

1. Focus on High-ROI Channels

If you are still pouring money into ad platforms without tracking conversions, now is the time to stop.

Shift your focus to tactics that are measurable and cost-effective—think email marketing, SEO, and content marketing. These channels let you build long-term assets, not just pay for temporary attention.

2. Get Serious About Local SEO

Local SEO is not just about showing up on Google Maps anymore—it is about being the first solution people see when they need you.

Optimizing your website, updating your Google Business Profile, and gathering local reviews can drive real-world traffic without draining your wallet.

3. Partner Up and Cross-Promote

Two businesses are better than one—especially when budgets are tight.

Find complementary local businesses and run joint promotions, bundle products, or co-host events.

You get double the audience for half the cost—and a little community goodwill thrown in for free.

4. Embrace Content Marketing (for Real This Time)

If you have been putting off blogging, video tips, or email newsletters because you are “too busy,” guess what—your competitors are not.

Good content does not just fill up a website—it builds trust, nurtures leads, and keeps you top of mind when customers are ready to buy.

Even simple, helpful content wins—think “how to choose the right product” guides or “top 5 mistakes” posts related to your niche.

5. Review and Reallocate Constantly

You cannot “set and forget” your marketing during an economic squeeze.

Track what works, cut what doesn’t, and reallocate faster than you can say “dynamic budget optimization.”

(Yes, that is a thing—and no, it is not just for big brands.)

Big Picture—Pressure Creates Opportunity

Economic pressure, like tariffs, can force hard decisions—but it also sharpen your strategy if you let it.

Small businesses that adapt early—by marketing smarter, not just cheaper—will not just survive the tariff turbulence.

They will come out ahead while competitors are still wondering where all their customers went.