President Donald Trump's tariffs are poised to disrupt retail and digital media, with advertisers anticipating tighter budgets and higher consumer prices. Approximately 45% plan to cut ad spending, particularly in areas like social media. Retail media ad spend is projected at between $56 billion and $61 billion in 2025, although heavy tariffs could reduce this by 8.1%. While the focus will be on performance-driven strategies, brand-building remains essential for differentiating in a volatile market, with strong brands maintaining consumer loyalty amidst price fluctuations.
Nearly half (45%) of advertisers plan to reduce overall ad spend due to financial constraints from tariffs, highlighting significant budget challenges ahead.
In a tighter spending environment, advertisers will double down on measurable performance, although brand-building efforts should not be neglected as brand equity remains crucial.
If heavy tariffs are enacted, ad spend could fall by 8.1% compared to scenarios with limited tariffs, impacting retail media's growth trajectory.
Brands with a strong value proposition will stay top of mind, as consumers seeking stability may prefer trusted brands amidst pricing volatility.
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