Nearly all U.S. advertisers (94%) are nervous in regards to 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 1 / 4 (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 promoting are expected to face the most important budget reductions, while CTV and online video could also be more resilient.
Strategic adjustments
To address financial constraints, advertisers plan to:
- Reduce overall ad spend (45%)
- Increase concentrate on performance-based campaigns (35%)
- Shift to digital channels with higher 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 one of the best ways for an organization 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 employee salary or advantages.
Dig deeper: 3 reasons your paid social ads aren’t converting (and the way to fix them)
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