As marketers, we know that every challenge presents an opportunity. The cost-of-living crisis is no exception. With inflation biting into household budgets and discretionary spending shrinking, brands face a pivotal moment: adapt or risk irrelevance. This isn’t just about tweaking price points or offering discounts; it’s about understanding the new psychology of the consumer and responding with creativity, empathy, and purpose.
Today’s consumers are navigating a precarious financial landscape. Essentials are prioritised, luxuries are reconsidered, and trust in brands has become a critical currency. Shoppers are not just looking for products—they’re looking for solutions, reassurance, and a reason to stay loyal in tough times. For advertisers, this means rethinking how we connect, where we invest, and what value truly means.
The opportunity is clear: brands that step up to meet these challenges with authentic, value-driven strategies will not only weather the storm but emerge stronger. This article explores how the advertising industry can transform the constraints of this economic moment into a catalyst for creativity, delivering campaigns that resonate deeply and forge lasting relationships with consumers.
By focusing on empathy, affordability, and innovative solutions, we can redefine what it means to be relevant in an era of financial uncertainty. After all, the most memorable advertising doesn’t just sell—it solves.
Adapting to Consumer Behaviour during a 'Cost-of-Living' crisis
To adapt to the cost-of-living crisis, advertisers must first understand the profound shifts in consumer behaviour. Financial pressures are reshaping how individuals make decisions, prioritise spending, and engage with brands. This isn’t just about penny-pinching—it’s a fundamental change in values, expectations, and trust.
The days of carefree spending are behind us, replaced by a hyper-focus on essentials. Consumers are making tough choices, with many opting to spend only on products and services that feel indispensable. Brands in categories perceived as “non-essential” now face a daunting challenge: proving their relevance in a tighter economy. Successful campaigns are those that demonstrate clear, tangible value—whether through practicality, emotional resonance, or both.
Take, for example, the rise of value-based messaging. Grocery brands that highlight “budget-friendly meal plans” or retail companies promoting multi-use products are thriving because they align with this new mindset. Marketers must position their offerings not as nice-to-haves, but as must-haves, even if they exist in a traditionally discretionary category.
When money is tight, trust becomes the ultimate differentiator. Consumers scrutinise claims more closely than ever, searching for honest communication around pricing, quality, and value. A brand that overpromises or misrepresents risks alienating its audience and losing loyalty that may never be regained.
This is where transparency is non-negotiable. Advertising campaigns must go beyond marketing jargon to offer concrete details: how a product saves money, lasts longer, or contributes meaningfully to the consumer’s life. Transparent messaging isn’t just good practice—it’s a necessity for maintaining relevance in today’s market.
During economic hardship, consumers gravitate toward brands that acknowledge and empathise with their struggles. Advertising that leans into shared experiences—celebrating small wins, acknowledging sacrifices, or providing moments of joy—has the potential to build deep, emotional bonds.
Campaigns that show real understanding of consumers’ lives—like highlighting the resilience of families making ends meet or small indulgences that bring comfort—can create lasting impressions. Emotional resonance doesn’t just sell products; it fosters loyalty, even in the toughest times.
The cost-of-living crisis isn’t just a financial challenge—it’s a human one. Understanding these behavioural shifts allows marketers to respond not with generic solutions, but with strategies tailored to the realities of their audience. When brands approach this moment with empathy and insight, they don’t just weather the storm—they become indispensable allies to the people they serve.
Authenticity above all else
As the cost-of-living crisis reshapes consumer priorities, brands are rewriting the playbook for how they connect with their audiences. Creativity is no longer just a differentiator—it’s a survival strategy. To remain relevant and build loyalty, advertisers are adopting bold, innovative approaches that align with the economic realities of their consumers.
Brands are moving beyond the traditional "lowest price" narrative to offer genuine value in new and engaging ways. This shift isn’t just about affordability; it’s about framing products and services as solutions to real-life challenges.
For example:
Bundling Offers: Packaging products together at a lower combined price to maximise perceived value.
Flexible Payment Options: Highlighting payment plans or subscription models that spread costs, making products more accessible.
Reward and Loyalty Programs: Building ongoing engagement through points, discounts, or exclusive benefits for repeat customers.
In tough times, consumers often look for small indulgences to bring joy without breaking the bank. Brands are tapping into this mindset by marketing affordable products as "everyday luxuries." From a premium coffee blend marketed as “an indulgent morning ritual” to beauty products described as “a touch of glamor for your daily routine,” these campaigns offer aspirational messaging grounded in practicality.
The key is positioning: emphasising emotional fulfillment while keeping affordability front and center. Brands that succeed in this space manage to elevate their products without alienating financially stressed consumers.
The era of one-size-fits-all advertising is fading fast. With tighter budgets, brands are doubling down on precision to ensure every campaign delivers maximum ROI. Advances in data analytics and audience segmentation allow marketers to target consumers with messaging that feels tailored and relevant to their unique situations.
For example, a clothing retailer might use geo-targeting to promote weather-appropriate seasonal discounts in specific regions or leverage behavioural data to highlight budget-friendly options for frequent shoppers. By speaking directly to individual needs, brands can make even modest campaigns feel impactful.
The most effective advertising during economic hardship taps into a universal truth: people want to feel seen and understood. Empathy-led storytelling shifts the focus from selling to serving, building trust and emotional resonance.
Consider campaigns that:
Highlight stories of resilience and community support.
Showcase how a brand is helping consumers navigate challenges, such as offering tips for saving money or reducing waste.
Celebrate small, everyday victories in an authentic, relatable way.
This human-centric approach not only strengthens emotional connections but also positions brands as allies during difficult times, authenticity is now more crucial than ever.