Brands and advertisers are looking for flexible terminology as they face uncertainty about how President Donald Trump’s new tariffs will affect their businesses.
People close to the discussion said that the ability for businesses to quickly turn their budgets and shift their focus to different types of marketing when responding to obligations has become a focus of conversations between media companies and advertisers.
President Donald Trump has announced that he will put a minimum of 10% tariff in the United States on all imports, with far more sudden obligations in dozens of countries, including China and Vietnam. The lack of details over the past few weeks, and sometimes contrasting messages from the White House, have encouraged conversations about flexibility between chief marketing directors and media executives, people said.
“In this period of uncertainty, we see a major shift towards more flexible, performance-based advertising models that allow brands to adjust their spending more quickly in the event of changes in conditions,” said Jonathan Gudai, CEO of Adomni, the advertising platform for programmatic video EveryEV, powered by artificial intelligence. When you buy ads programmatically or via digital platforms, the majority of ad spending is increasing, and the use of AI tools is often part of the process.
Economy instability often means that businesses will pull back their spending on advertising and marketing. The potential hits in the advertising market highlight the ripple effects of tariffs on businesses that do not directly compete with increased product costs.
Kate Scott-Dawkins, global president of business intelligence at GroupM, WPP’s media investment group, said it is not the only factor that will cause advertisers to rethink their budgets.
“We were pretty bullish on our December forecast for US (advertising spending) growth. I think we’ll be curbing that with our June forecast based on the confluence of impacts,” Scott Dawkins said. “From the effects of tariffs along with increasing inflation and layoffs and unemployment. I think it’s all that brings together what leads to a decline in expectations that year.”
A recent report shows that spending in the US advertising market will increase by 7% in 2025 after a total of $379 billion in advertising revenue in 2024.
For media companies, uncertainty comes shortly after they contested their advertising budgets during the pandemic.
In some respects, since the pandemic, many media companies, especially advertising with streaming platforms and live sports rights, have been stable. However, traditional television networks still face lower advertising revenues as consumers move away from standard bundles of cable channels, away from standard bundles of digital platforms, and gain a larger share of advertising budgets.
However, some advertising categories such as cars have not rebounded, and businesses are not sure what tariffs mean on spending, people said. They added that conversations with the automaker’s chief marketing officers are occurring frequently. Trump announced 25% tariffs on cars and some auto parts not made in the US
The tariffs are announced a few weeks before media companies pitch to their annual advertisers.
“Everything you’ve heard beforehand is the overall trading situation in the advertising world. That’s cautious,” said Jonathan Miller, CEO of Integrated Media, which specializes in digital media investment. “There’s far more demands on flexibility, not a recession, but there’s a slight restraint… meaning a few percentage points of overall growth. It feels good enough.”
While Adomni’s Gudai added that traditional television will be one of the most vulnerable areas to ad budget cuts, brands should also broaden their focus when it comes to competition with customers with high priced products.
“While tariffs can potentially create an increase in costs that could narrow down your advertising budget, it also increases the need for targeted advertising as brands compete for factors beyond prices,” Gudai said.
While media executives are open to providing flexibility, people said they have also reminded brands that advertising during tough economic times can raise brand awareness and support businesses in the long term.
It’s better to offer some brands without reducing their advertising spending, especially if they don’t have any other ways to reach brick-and-mortar stores or potential customers. Scott-Dawkins said it’s worth spending on TV ad spots as it is considered by some companies as the most effective way to reach consumers.
“If every dollar is being scrutinized, a brand has to do more than simply sell. They need to connect. Purpose-driven marketing is no longer “good.” It’s a way for brands to gain trust and develop lasting relationships.” “In times of uncertainty, consumers are drawn to companies that represent something real. Advertisers who recognize this will not only survive the recession, but will also be those who will come out strongly on the other side.”
