Brands and advertisers are looking for flexible terms because they face uncertainty about how the new prices of President Donald Trump will affect their businesses.
Pressure for more indulgent agreements, in which companies could quickly rotate budgets or focus on different types of marketing as they react to tasks, has been the objective of conversations between media companies and advertisers in recent weeks, according to people close to discussions.
President Donald Trump announced that he would put at least 10% prices on all imports in the United States, with much more steep tasks on dozens of countries, including China and Vietnam. The scarcity of details in recent weeks, and sometimes contrasting messages from the White House, have fueled conversations on flexibility between marketing chiefs and media leaders, people said.
“During this period of uncertainty, we see a significant change towards more flexible advertising models and based on performance that allow brands to adjust expenses quickly if the conditions change,” said Jonathan Gudai, CEO of Adomni, a programmatic advertising platform for artificial intelligence. The purchase of announcements by program or via digital platforms has taken an increasingly large part of advertising expenses, and the use of AI tools is now part of the process.
The brilliance in the economy often means that companies are retreating on expenditure on advertising and marketing. The potential blow on the advertising market highlights the draft rate training effect on companies that will not directly compete for the increased costs on products.
The prices are not the only factor that forced advertisers to rethink their budgets, said Kate Scott-Dawkins, world president of Business Intelligence of Groupm, WPP Media Investment Group.
“We were quite optimistic in our December forecasts on [ad spending] Growth for the United States, I think, we will probably end up braking this in June forecasts, depending on the confluence of impacts, “said Scott-Dawkins.” Increased layoffs and unemployment and unemployment as well as the impact of prices. I think it will be all these things together that will lead to a reduction in our expectations for the year. “”
GroupM provides spending on the American advertising market by 7% in 2025, after having totaled $ 379 billion in advertising revenue in 2024, excluding political advertising, according to a recent report.
For media companies, uncertainty also occurs shortly after having concluded advertising budgets tightened at the height of the pandemic.
In some respects, advertising has stabilized for many media companies from the pandemic – especially for streaming platforms and those with live sports rights. But traditional television networks are still faced with lower advertising revenues, consumers who move away from the standard package of wired channels, and digital platforms and streaming engulfing a larger share of advertising budgets.
However, certain advertising categories such as cars have not rebounded and companies do not know what prices will mean for expenses, people said. Conversations with marketing leaders among car manufacturers have been frequent, they added. Trump announced 25% of prices on cars and certain automotive parts not made in the United States
The prices also take place weeks before initial presentations, when media companies make their annual argument for advertisers.
“All I hear about the highs and the state of global trade in the advertising world is that it is careful,” said Jonathan Miller, CEO of Integrated Media, specializing in digital media investments. “There are many more requests for flexibility, and even if it is not a recession, there is a slight restraint … which means some percentage points of overall growth. Quite felt.”
Adomni Gudai has added that traditional television will be one of the most vulnerable areas to the budget cuts of the ad, but brands will also have to expand their objective with regard to competition for customers who could face higher prices on goods.
“Prices potentially create a double impact – increased costs that can compensate for advertising budgets, but also a greater need for targeted advertising, because brands compete on factors beyond the price,” said Gudai.
Although media leaders are open to offering flexibility, they also reminded brands that advertising during difficult economic periods can strengthen brands’ notoriety and help long -term businesses said people.
Some brands are better served, not reducing advertising expenses, especially if they do not have brick and mortar stores or means outside of marketing to put themselves in front of potential customers. Scott-Dawkins said that for some companies, it was still worth spending on advertising spots, as it is always considered the most effective way to reach consumers.
“When each dollar is under control, brands must do more than simply sell – they must connect. The objectives focused on the objectives is no longer a” nice to have “; this is how brands gain confidence and establish lasting relations,” said Andre Banks, founder and CEO of Newworld, marketing and strategy advice. “In uncertain times, consumers revolve towards companies that represent something real. Advertisers who recognize that it will be those who do not only survive the recession but who come out stronger on the other side.”