Trump trade war brings renewed importance

From CNBC: 2025-05-11 07:00:00

Media companies, including Comcast’s NBCUniversal, Fox Corp., and Warner Bros. Discovery, are presenting their upcoming programming to advertisers amid economic uncertainty. They face challenges from streaming competition and changing consumer behavior. Despite fears of tariff impacts, ad spending remains steady. Live sports and must-see TV are key categories during the Upfronts, highlighting the importance of advertising in uncertain times.

Amid concerns over President Trump’s trade war, media executives report no significant pullback in advertising spending. Companies like Warner Bros. Discovery have not seen cuts in ad volume. Executives emphasize the need for scenario planning but note a lack of tangible impacts on businesses. eMarketer predicts a decline in traditional TV ad spending during Upfronts, with streaming spending remaining stable. Advertisers have leverage in pricing negotiations, particularly for sports content. Adomni CEO Jonathan Gudai predicts companies losing pay-TV subscribers may lower prices. Ad data firm EDO notes ad spending decline in various sectors post-Trump tariffs. Consumer concerns about rising prices boost ad effectiveness, with home appliance brands cutting spending but seeing 77% higher responsiveness. Media executives emphasize importance of tailored ad buys based on data from firms like EDO.

The relevance of annual Upfronts in advertising industry questioned. Fox’s Collins notes ongoing debate on necessity of Upfront presentations. EDO’s Krim emphasizes need for real-time data and flexibility to compete with digital giants like Meta, Amazon, and Google. NBCUniversal’s Reduto highlights benefits of locking in ads during Upfronts for key events like Super Bowl and Olympics.

Despite ongoing debate, traditional media giants view Upfronts as more important than ever. EDO’s Krim stresses the need for real-time data and flexibility in ad buying. NBCUniversal touts benefits of locking in ads during Upfronts for key events. Advertisers value the ability to secure prime positions at desirable pricing with flexibility.



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