Subscription Brands Shift Away from Digital Ads Amid Rising Costs

Subscription businesses are rethinking ad strategies as direct acquisition costs soar. Bango’s report, Gravity Shift, highlights growing doubts about the sustainability of paid search and social media. Among 200+ surveyed executives, 88% expect acquisition costs to rise in 2025—nearly one-third by over 25%.

In response, 80% of brands are cutting spend on paid channels, with many calling direct marketing a budget “black hole.” Over half believe direct ads no longer drive sustainable growth, citing rising costs, privacy rules, and customer fatigue.

Instead, brands are turning to indirect strategies like bundling and partnerships. About 82% plan to invest more in these channels, and 90% are bundling or planning to by 2025. Indirect methods are seen to attract higher-quality subscribers and reduce upfront costs.

This shift signals a potential decline in performance marketing's dominance, impacting ad giants like Google, Meta, and TikTok.

11-06-2025