Inflation Is Eating Your Ad Budget—Now What?
Let’s be real: inflation’s got its greasy fingerprints on everything—gas, groceries, and now your ad costs. If your marketing dollars aren’t stretching like they used to, it’s not in your head. Platforms like Google, Meta, YouTube, and OTT are charging more, because they’re paying more. And with more businesses chasing the same ad space, prices are only going one direction—up.
Why Your Old Budget Isn’t Cutting It
A few years ago, $10K in ad spend might’ve felt like a windfall. Today? That same amount barely holds the line.
Here’s the deal:
- The digital landscape has changed
- Platform costs are up
- Competition is fierce
- Your old budget isn’t broken—it’s outdated
If you’re expecting the same results at 2020 prices, it’s not your agency that’s off—it’s your expectations.
Adjusting Your Advertising-to-Sales Ratio
This is where things get real. Your ad spend should scale with your goals, not your guesswork.
The general rule of thumb:
- Growth Mode:
Spend 7–10% of revenue. You want to grow? You’ve got to stay loud and visible. That takes money—and consistency. - Maintenance Mode:
Spend 3–5% of revenue. This keeps you in the game without trying to dominate it. Safe? Sure. But it’s not how you pull ahead.
Industry context matters:
Retail, flooring, furniture, and service-based businesses need to lean higher to stay top of mind.
Other industries—like niche B2B or manufacturing—can sometimes do more with less.
We help clients figure out what makes sense for them based on real-world benchmarks, margins, and market saturation—not vibes.
Consistency Still Wins
Inflation or not, the brands that stay in front of people the most… win.
Stopping your marketing every time things get tight is like skipping the gym and wondering why your results stall.
Remember:
- Momentum matters
- The algorithm hates stop-and-go
- Your customers forget fast
If you disappear, they’ll assume you’re gone. Or worse—they’ll remember your competitor instead.
Bottom Line
Advertising is more expensive than it used to be. But not advertising at all? Way more costly.
Shrink your budget too much, and you’ll shrink your pipeline right along with it. Don’t get reactive—get strategic.
We help businesses spend smarter, stay consistent, and build growth plans that can handle a little inflation.