"Advertisers have become wary over fears of tariffs, pulling back on planned spending as they wait to see how the economy will react to President Trump's plans. AFP via Getty Images The Trump administration's on-again, off-again tarrif wars have prompted more than just consumer concerns about inflation and tk. They have also stoked tariff worries among advertisers, which is creating a volatile media economy."
"These concerns are reshaping the outlook for the second half of the year. New projections from the Interactive Advertising Bureau (IAB) indicate that U.S. digital ad spending will continue to grow but at a slower rate than it had originally projected, 5.7% versus an earlier projection of 7.3%. The IAB 2025 Outlook Study September Update, based on a survey of over 200 buyers at brands and agencies, found that a staggering 91% of buyers have concerns about the effect of tariffs on media spending."
"Changes may include moving money from traditional media, much of which is bought on a longer timeline and can be harder to adjust on the fly, to digital. Of course, this historical cycle that has played out during past times of economic worry could be a boon to the IAB. The IAB projects linear TV will decline 14.4%, sharper than its original prediction of 12.7%. Other traditional media will decline by an average 3.4%, more than twice as much as the IAB projected in January."
Tariff concerns have led advertisers to delay or reduce planned media spending, generating volatility across the media economy. Survey data show 91% of buyers worry about tariffs' effects on media budgets, with auto, retail and consumer electronics advertisers already taking action. U.S. digital ad spending is still projected to grow but at a slower pace, now 5.7% versus 7.3% previously. Advertisers appear to shift budget toward digital because it offers greater flexibility and real-time optimization, while linear TV and other traditional media face steeper declines—linear TV down 14.4% and other traditional media down about 3.4%.
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