An IAB survey reveals that 94% of U.S. advertisers are anxious about the impact of tariffs on their ad expenditures, prompting strategic budget cuts. With 60% expecting a 6%-10% drop and 45% planning an overall reduction in spend, traditional media faces the largest cuts. Advertisers are shifting focus towards performance-based campaigns and digital channels, while also adjusting messaging to align with consumer expectations. A separate poll indicates that a majority of consumers believe companies should respond to tariff hikes by cutting executive pay instead of affecting employee salaries or benefits.
The majority of advertisers are anticipating significant budget cuts due to tariff concerns, with 94% worried and 60% expecting ad budgets to decrease by 6%-10%.
With 45% of advertisers planning to reduce their overall ad spend, the shift towards performance-based and digital campaigns signals a strategic response to financial constraints.
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