In April 2025, a tariff announcement triggered a major market dip, and stock indexes fell over 10% in two days. Business owners across the country faced a critical question:
Do we pull back advertising/acquisition efforts... or stay the course?
Comma Eight analyzed advertising data from thousands of fitness studios before, during, and after this volatile period. The results were crystal clear:
Studios that held steady or adjusted strategically saw the biggest wins, both in lead volume and return on ad spend.
By the Numbers: Staying Consistent Wins
- +6% increase in daily revenue for studios that maintained spend during April 1–8
- +15% higher revenue per ad spend (ROAS) vs. those who reduced spend
- Cost Per Lead (CPL) dropped 3.5%, yet 65% of studios cut budgets, missing a key efficiency window
- Studios that kept spending flat saw 20% more revenue per lead (RPL) than those that reduced spend
Efficiency Peaks During Uncertainty
While most pulled back, ad inventory was cheaper:-
- CPMs dropped 7%
- CPLs dipped by 3.5%
Studios that increased ad spend during this low-cost window maximized lead volume and front-loaded performance.
Figure 1. 3D plots measuring days of an Ad metric (x-axis), days of a market metric (y-axis), and their correlation (z-axis). This specific figure looks at Average Daily Leads/Revenue/First 60 Revenue over the next X days, S&P 500 market Return/Average Daily Volume/Average Daily Volatility.
In this, the market metric (Top row to Bottom row: market return over the past N days, avg daily market volume over the past N days, avg daily market volatility over the past N days) was correlated with performance metrics (Left to Right: avg daily Leads over the next M days, avg daily Revenue over the next M days, avg daily First 30 Days Revenue over the next M days). In this case, there is a high positive correlation with recent S&P 500 average daily volatility on Leads, Revenue, and First 30 Days Revenue for at least a week.
Strategic Framework: Spend Smarter, Not Louder
Performance Rule of Thumb:
If CPL drops faster than lead volume, it's time to increase spend
If lead volume drops faster than CPL, pull back
Studios that followed this logic:
- Outperformed their peers by 12–25% across revenue metrics
- Converted leads faster and at a higher value in the first 30 days
Turning Short-Term Volatility Into Long-Term Growth
Studios that:
- Held budget steady in early April outperformed those who cut spend by up to 30% ROAS
- Reduced spend only after demand (and costs) surged saw the most efficient return on every dollar
Even as lead volume declined over time, lead quality improved:
- Faster conversions
- Higher early spend
- More loyalty-driven behavior
What this means for you:
If you're cutting or shifting ad budgets based on sentiment or headlines, you’re likely leaving revenue on the table.