Performance Marketing
Ads Are More Expensive For Good. Here's How Smart Brands Are Adapting.
Key takeaways
- The rising cost to win a new customer isn't a temporary dip — it comes from lasting changes in how ads are auctioned, privacy rules, and more brands competing for the same customers.
- Brands that treat keeping customers as a growth strategy, not just a nice-to-have, get more value out of every new customer they win.
- Spreading out beyond one main ad platform protects you when any single platform gets more expensive or changes its rules.
- Showing up when people ask AI tools for product recommendations is a real, mostly untapped way to get found that most brands haven't invested in yet.
If it feels like ads cost more than they used to and never came back down, that feeling is correct. The reasons behind it — less precise ad targeting after privacy changes, more brands bidding for the same customers, and online marketplaces competing for the same shoppers — aren't going away. Planning around ads getting cheaper again means planning around a number that isn't coming back.
Why relying on one ad platform is risky
Brands that built their growth entirely on one paid platform — usually Meta — are the most exposed, because they have nothing to fall back on when that platform gets more expensive. The brands handling this well aren't necessarily spending less; they're spreading their risk across more places to find customers and putting real budget behind channels they used to treat as an afterthought.
- Email and text messages as a way to grow, not just to keep in touch — building your list through your own website and content, not only paid traffic.
- Showing up when people ask AI tools for product ideas. ChatGPT is already the second most-used tool for discovering products among younger shoppers, behind only Google and ahead of Amazon — a channel most brands haven't built any strategy around yet.
- Quizzes, calculators, and other interactive tools that learn what a visitor actually wants before they ever reach a price page, so you're not entirely dependent on one ad platform's targeting.
- Testing more new ad ideas, faster — brands that try more concepts per week get more out of the same ad budget before people get tired of seeing the same ad.
of millennials already use ChatGPT to discover products — a channel most online brands haven't built any strategy around.
Source: PYMNTSWhy keeping customers matters more than you'd think
The most reliable way to make expensive ads less painful isn't finding a cheaper way to advertise — it's spreading that cost across a longer relationship with each customer. A brand whose customers keep coming back can afford to spend more to win a new customer than a brand relying entirely on one-time buyers, because what matters is how much a customer is worth over their whole relationship with you, not just their first order.
- Follow-up emails and texts after a purchase that actually bring people back for a second order, not just a discount-code blast.
- Subscriptions or auto-reorder options where they make sense for your product, which turn a single sale into repeat sales over time.
- Loyalty and referral programs that turn your existing customers into a cheaper way to find new ones.
- Investing in customer service and the overall experience — the least glamorous fix, and often the one that does the most to bring customers back.
The shift, in one sentence
Brands that are handling rising ad costs well have stopped asking "how do we get ad costs back down" and started asking "how do we make each customer worth more to us, and where can we find customers our competitors haven't found yet." Both questions point away from relying on one ad platform and toward a system built on more places to find customers and getting them to stick around — harder to build, but much more durable.
Frequently asked questions
The reasons behind rising costs — privacy rules limiting ad targeting, more brands competing for the same customers, and marketplace bidding pressure — aren't temporary, so planning around costs going back to what they used to be is a risky bet. The safer approach is building a business that works at today's costs.
About the author
Marcus Chen
Performance Marketing Lead