Nearly all U.S. advertisers (94%) are worried about the impact of tariffs on ad spending, according to an IAB survey. Of those, 57% are “extremely concerned” and 37% are “somewhat concerned.”
The majority of those surveyed (60%) expect ad budgets will drop by 6%–10%. Nearly a quarter (22%) expect an 11%–20% drop. Budget contractions are anticipated to peak mid-year, with 45% of advertisers planning to reduce overall ad spend.
Traditional media and social advertising are expected to face the largest budget reductions, while CTV and online video may be more resilient.
Strategic adjustments
To address financial constraints, advertisers plan to:
- Reduce overall ad spend (45%)
- Increase focus on performance-based campaigns (35%)
- Shift to digital channels with better measurement (29%)
- Adjust campaign messaging (28%)
- Negotiate for more flexibility (21%)
Planning to adjust your messaging? A recent poll by DKC analytics showed 66% of U.S. consumers said the best way for a company to respond to tariff price hikes is to cut executive pay. The survey, by DKC Analytics, also found nearly 50% of respondents were against cuts to worker salary or benefits.
Dig deeper: 3 reasons your paid social ads aren’t converting (and how to fix them)
About the author
Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.