"BlackRock CEO Larry Fink said high oil prices for a sustained period would trigger a 'steep and stark recession' - one that could wipe out nearly $50 billion in ad spend this year and another $44 billion the next."
"'When we first started looking at it [the forecast], we were conscious of the developments in the Gulf and the impact it could have. But with every week that passes there's this nagging sense that this actually will be a problem,' said Alex Brownsell, head of Content at Warc Media."
"'If I were an advertiser right now, I'd be thinking about planning for contingency - putting some budgets on ice, just in case,' said Thomas Bailly, head of international growth at ad tech vendor readpeak."
The U.S. proposed a ceasefire plan to Iran, which was rejected, causing oil prices to rise above $106. Tensions escalated with threats from Trump and Iranian attacks. BlackRock's CEO warned of a steep recession due to sustained high oil prices, potentially impacting advertising spend significantly. The conflict's scale and its stagflationary nature are causing concerns about GDP decline alongside rising inflation. Advertisers are advised to prepare for contingencies as traditional recovery strategies may not apply in a stagflation scenario.
Read at Digiday
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