Trump tariffs are causing uncertainty, leading brands to seek flexible advertising agreements

From CNBC: 2025-04-02 14:52:00

Brands and advertisers are seeking flexible terms due to uncertainty about impending U.S. tariffs. President Trump will announce details of the tariffs later today, causing a push for more adaptable marketing agreements. Ad spending is increasingly shifting towards performance-based models amid economic instability.

GroupM forecasts U.S. ad spending to grow 7% in 2025, totaling $379 billion in 2024. Media companies face uncertainty as tariffs loom, impacting ad budgets. Some advertising categories like autos remain stagnant, with automakers unsure of spending implications.

Traditional TV networks face decreased ad revenue as digital platforms gain market share. Upfront presentations are approaching, with media companies facing cautious trading conditions. Tariffs may impact advertising budgets, leading to demands for flexibility among brands.

While traditional TV faces vulnerability to ad budget cuts, brands must broaden focus to compete for customers facing higher prices. Media executives emphasize the importance of advertising during tough economic times. Purpose-driven marketing is becoming essential for brands to establish trust and build lasting relationships.

In uncertain economic times, brands that connect with consumers on a deeper level will come out stronger. Advertisers must recognize the importance of standing for something real to earn trust. Media companies are open to offering flexibility while reminding brands of the long-term benefits of advertising during tough times.



Read more at CNBC: Trump tariffs news: Advertisers look for flexibility