Advertisers Seek Flexibility Amid Uncertainty Over Trump’s New Tariffs
F.M.I.E Sources — As President Donald Trump’s new tariffs take effect, advertisers are looking for more flexible terms to adapt to the shifting landscape. The tariffs, set to impact all imports into the U.S., are creating uncertainty in the advertising and marketing industry, prompting companies to seek agreements that allow them to quickly adjust their budgets or pivot their strategies in response to the economic effects of the duties.
The new tariffs, including a 10% levy on all imported goods and higher duties on countries such as China and Vietnam, have added to the instability in the market. Media companies and advertisers have been in discussions about ensuring more adaptable contracts to help them navigate this period of uncertainty.
Jonathan Gudai, CEO of Adomni, an AI-powered programmatic advertising platform, shared that brands are increasingly turning to flexible, performance-based advertising models. “In this period of uncertainty, we’re seeing a significant shift toward more flexible advertising strategies that allow brands to adjust spending quickly if conditions change,” Gudai said.
Economic instability often leads companies to reduce spending on advertising, especially when facing uncertainty over tariffs. The impact of the tariffs extends beyond those directly affected by higher product costs, influencing how companies allocate their advertising budgets.
Kate Scott-Dawkins, Global President of Business Intelligence at GroupM, WPP’s media investment group, explained that the uncertainty surrounding the tariffs is part of a larger economic picture. “We were pretty bullish in our December forecast for U.S. ad spending growth,” Scott-Dawkins said. “But I think we’ll likely curb that forecast in June, considering the combined effects of rising inflation, layoffs, unemployment, and the impact of tariffs.”
GroupM had originally projected a 7% growth in U.S. ad spending in 2025, following a total of $379 billion in ad revenue for 2024. However, these forecasts may now be revised due to the broader economic factors at play.
For media companies, the uncertainty comes on the heels of a challenging period during the pandemic, when ad budgets were significantly reduced. While streaming platforms and live sports rights have helped stabilize advertising for some companies, traditional TV networks are still grappling with declining ad revenues as viewers shift away from cable TV. Meanwhile, digital platforms and streaming services continue to capture a larger share of the advertising pie.
Certain industries, such as the automotive sector, have yet to fully recover from the pandemic, and companies are uncertain how tariffs will affect their ad spending. The automotive industry, in particular, faces new 25% tariffs on cars and some auto parts that aren’t manufactured in the U.S. Discussions with chief marketing officers in the auto sector have been frequent, as companies prepare for these potential disruptions.
The timing of these tariffs also coincides with the annual Upfront presentations, where media companies pitch their advertising opportunities to brands. “Everything I hear about Upfronts and the current state of the ad world is cautious,” said Jonathan Miller, CEO of Integrated Media, which focuses on digital media investments. “There’s much more demand for flexibility, and while it’s not a full recession, there’s definitely a slight pullback, leading to slower growth in overall ad spending.”
Gudai added that traditional TV is particularly vulnerable to budget cuts, as brands adjust their focus to compete for customers who may be facing higher prices due to the tariffs. “Tariffs could create a dual impact — higher costs that may squeeze advertising budgets, but also a greater need for targeted advertising as brands compete on factors beyond price,” he said.
While many media executives are open to offering flexibility, they are also reminding advertisers that advertising during uncertain economic times can build long-term brand awareness. Some brands, particularly those without physical retail locations, may benefit from continuing to invest in advertising. “For some companies, it’s still worth spending on TV ad spots, as it remains one of the most effective ways to reach consumers,” Scott-Dawkins said.
Andre Banks, founder and CEO of NewWorld, a marketing and strategy consultancy, emphasized the importance of connecting with consumers in tough times. “When every dollar is under scrutiny, brands have to do more than just sell—they have to connect,” Banks said. “Purpose-driven marketing is now essential for building trust and long-lasting relationships. Advertisers who recognize this will not only survive the downturn but come out stronger on the other side.”
F.M.I.E Sources also reports that as tariffs continue to shape the advertising landscape, companies are exploring new ways to adapt to a rapidly changing environment while maintaining their connection to consumers.