From Yahoo Finance: 2025-05-12 06:04:00

The television industry’s upfront selling season faces economic concerns due to potential U.S. recession from tariff policies. Major media companies may see a decline in ad spending as consumer confidence wanes. Research projects traditional TV ad spending could decrease to $13.4 billion, depending on tariffs. Digital ad spending may remain flat or rise with limited tariffs.

Media executives warn brands of consequences if they cut ad spending, as seen during COVID. Waiting to purchase ad time last minute may lead to increased rates. Sellers may need to offer concessions on pricing and terms to win business. Digital players will focus on AI to reach customers efficiently.

Some companies, like General Motors and Clorox, have cut annual forecasts due to trade uncertainty. Clorox is evaluating ad spending levels for optimal returns. Despite challenges, Disney and Netflix remain positive. Disney expects ad growth to exceed forecasts, while Netflix sees no signs of softness in discussions.

Netflix, with projected ad revenue of $2.7 billion in 2025, aims to double ad revenue this year. The company remains optimistic due to its early stages of building its ad-supported business. Media firms navigate uncertainties as they prepare for upfront presentations in an uncertain economic landscape.



Read more at Yahoo Finance: Tariff uncertainty clouds outlook for US television’s annual ad-selling bonanza