Current predictions for the economic landscape in 2025 show a mix of moderate growth, persistent inflation, and market uncertainty. For small to mid-sized businesses, the ability to thrive lies in blending creative marketing strategies with a resilient operational approach.
At Divining Point we continuously assess what the future holds for our clients. A careful reading of the tea leaves along with current performance data gives us a fairly accurate picture of how the next six to nine months will look and what opportunities exist for companies willing to capitalize.
The Expert Take on 2025
While most Americans were busy shopping for Christmas gifts, the Federal Reserve issued their predictions for 2025. While the Fed’s report claims that we won’t see a recession in 2025, they see median economic growth only at 2.1%.
But take this news with a grain of salt. Most economists see unemployment growing slightly to 4.3%. Anything above that could trigger a bigger movement into negative territory, especially since most Americans are relying on credit for discretionary spending. Consumers are already at record levels of credit debt as they’ve made painful decisions to adjust to persistent inflation. Job losses could exacerbate a pull back from spending.
The Fed sees moderate cuts to interest rates in 2025. This is nowhere near the record level low interest rates Americans grew accustomed to prior to 2022. While this has the potential to slow a recovery in the Housing Market, many homebuyers are finally beginning to adapt to the new reality of less than optimal mortgage rates. Expect interest rates to stay flat or slightly lower until mid-summer 2025.
Corporate insurance rates continued to climb last year as multiple hurricanes impacted the Southeast. These increases were felt most in umbrella coverage and auto rates, but these added costs were stacked on top of the lingering effects of inflation. 2024 was a tough year for many businesses, and we expect the first half of 2025 to be more of the same.
This all depends on how the new administration stimulates the economy, focusing on lowering energy costs and boosting domestic manufacturing. However, any actions taken early in Trump’s presidency will take about six months to filter through the economy and affect the wallets of consumers and businesses – right around the time tariffs are expected to drive up costs.
The TLDR version: don’t expect a buying boom anytime soon.
Given the realities of the current US economy and predictions from market leaders, we recommend that companies leverage their marketing for the most ROI possible. Here’s how to navigate the challenges and opportunities of the year ahead.
Lay the Groundwork for Success
It’s tough to argue for a greater investment in marketing when cost pressures are high and buyer activity is low, but the second half of 2025 is when we expect to see the positive effects of new economic policies and a potential for interest rate cuts. Businesses that build up their marketing now stand the greatest chance to capitalize as the economy gains steam.
Key areas to consider include:
Website Design
If your website is more than three years old, it’s time to refresh it. Yes, it’s a project. Yes, it costs money. But B2B and B2C customers are looking for companies to meet the needs of TODAY. Outdated websites with old designs, stale messaging, and poor user experience don’t have the impact required to generate sales.
Inbound Lead Generation
2024 saw the most radical changes in how brands are discovered online. The Search landscape is fraught with challenges, and marketers have to diversify their methods to be discovered online. That includes doubling down on email marketing, content and social media.
For faster response rates, we encourage businesses to take PPC advertising seriously. While most marketers expect a paltry average of 2-3% Click Thru Rate (CTR) on paid ads, we at Divining Point regularly experience 10-15% (or higher!) CTR using Paid Search. That return allowed many industries to thrive last year with a well crafted PPC strategy.
Create Value-Driven Campaigns
In times of economic uncertainty, customers want more than just a product. They need solutions. Rising costs and less available credit means buyers are looking for brands that demonstrate clear value and benefits. For B2B, focus on ROI and the efficiency your solution offers. For B2C, highlight savings, convenience, or improved quality of life.
Optimize Your Sales Process
The handoff between Marketing and Sales regularly kills the potential of any campaign. Regardless if you run an e-commerce website or have a sales team, increasing the close rate is critical during a time of economic volatility. Talk to us about how to dial in your process to close more deals from inbound leads.
Stay Lean, Prioritize Efficiency, Be Resilient
Marketing success isn’t just about external efforts; internal operations matter, too.
We expect businesses to continue to lean on marketing partners with deeper skill sets than internal teams offer. Efficient operations ensure that your marketing investment translates into results without unnecessary waste or overhead costs.
As we have said before, you should look to leverage the benefits of Artificial Intelligence where it makes sense so that you can speed up processes that normally take time and creative brainpower. But keep in mind that AI is a tool with limited rewards. You still need a marketing partner to breathe authenticity into messaging and make important decisions using real-time data.
You should also develop contingency plans for your marketing efforts. For example, set aside budget flexibility to increase spending on high-performing campaigns or pivot quickly if market conditions change. Regularly analyze campaign performance and adjust tactics to maintain efficiency.
From Inflation to Opportunity
Navigating 2025’s near term economic challenges requires a blend of initiative, creativity and resilience. Don’t get left behind when the economy starts rolling. By investing now in a leaner and meaner marketing strategy, you can build momentum while also generating immediate opportunities.
Ready to take your marketing to the next level? Contact us today. At Divining Point, we specialize in helping businesses thrive, even in uncertain times. Let’s make 2025 your strongest year yet.