Economic Trends
As a direct response to new tariffs on goods from China, Mexico, and Canada in the United States, along with rising costs and economic instability, advertisers are preparing for an ad spend slowdown.
The Interactive Advertising Bureau conducted a survey in February and found that 45% of advertisers plan to reduce their budgets due to tariffs this year.
Why This Matters
Just like those operating for-profit businesses, those operating in charitable organizations can expect tariffs to have a negative impact on them.
In times of economic uncertainty, businesses tend to cut marketing budgets in anticipation of lower revenue or higher costs. They may also cut their corporate charitable budgets.
As well, nonprofits may reduce their own marketing budgets as a response to the economic climate, resulting in less visibility and fewer donations due to not being top of mind.
This same uncertainty can cause donors to pull back on donating—especially if they rely on investments or business revenue for their giving.
Next Steps
To navigate this environment, charities will be best served investing in strengthening existing donor relationships through personalized communication, diversifying revenue streams through recurring giving programs, partnerships, or grants, and doubling down on organic marketing such as email marketing, social media content creation, and content marketing to maintain visibility.
To read more from the Interactive Advertising Bureau study, click on the linked article here.
Are you noticing any early signs of how economic uncertainty is affecting your supporters or ministry plans? Send me an email and we’d love to explore solutions with you.
Robyn Roste
Media Manager | robyn@eaglecom.ca