The article discusses the impending upfront presentations by TV networks and streaming services, where advertisers will decide on ad spending for 2025 amidst economic uncertainty. Advertisers are hesitant due to fluctuating tariff policies from the Trump administration, creating anxiety that could impact their ad budget decisions. David Campanelli highlights that advertisers are unsure about tariffs' effects on consumer behavior and spending. Analysts like Brian Wieser have revised ad spending growth estimates downward due to these uncertainties, with recession fears adding to the challenges the media industry faces.
"It's really bananas going back and forth like this," said David Campanelli, president of global investment for the ad-buying firm Horizon Media. "What we're hearing from advertisers is that they are still waiting to understand the impact that tariffs will have on their business and how it will impact people's willingness to pay more."
Brian Wieser, a principal at the consulting firm Madison and Wall, said Trump's actions on tariffs led him to lower his ad-spending forecast for 2025. He sees ad spending growing by 3.6% in 2025, down from the 4.5% increase he projected in December.
The biggest fear looming is a possible recession, which could have a devastating impact on the media business that is already in a volatile state due to shifting consumer habits.
But it's tricky for advertisers to make commitments amid the Trump administration's erratic rollout of tariff policies against China and other nations, which has created a state of uncertainty at a time when businesses have to plan ahead to place their ad dollars.
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