Convincing people to spend money at the time of unexpected tariffs prove that it is a complex account for $ 380 billion American advertising industry.
Should the retail seller adhere to the TV holidays ads for games manufactured by newly dangerous commercial partners? How does social media companies represent the potential disappearance of Chinese companies that have spent billions of dollars in promoting their utensils? How can the car maker vehicles that may cost consumers more dollars than they were a year ago?
“You will do uncertainty about how to make things, not to mention what will happen to consumers in terms of their tendency to buy?” Brian Weser, CEO of veteran industry, who runs Madison Wall, a consulting company, said. “This will really reduce advertisers to spend their ads.”
Lurch major companies left this month, as the administration announced a new tariff, which was quickly imposed, and the reflecting the path after a few days and then multiplied on targeting China. “The advertisers are” paralyzed. ” Many companies refused to clarify their marketing strategies for the coming months or said they are in a “waiting and getting to know”.
“We, as in the dark, about this, as I think everyone is another,” said Mr. Patsal. “It is a volatile situation because making decisions are very volatile.”
Companies are often seen to invest in marketing and promoting as a global economy agent, a type of indicator on whether the gross domestic product may grow or shrink. Many advertising experts said that the definitions can lead to the impact of the Domino Economic, which leads to consumers closing their governorates, and companies simplify their spending and marketing to take a rear seat.
“In a world in which the recession is struck by the United States, the advertisement will be hit more difficult – even in the scenario of relatively moderate stagnation and speed,” wrote analysts at Moffettnathanson, a research company, in an investor.
Some companies run ads that urge consumers to buy before the tariffs begin to raise prices. On Facebook, I told California, Michigan, Utah and other shopping places, “lock pre -conflict prices before prices rise” and “check our free prices of customs tariffs.” A brand of the Dita von Teese underwear, a comic dancer, has placed ads saying: “The next tariff. A dealer of home commodities at Minneapolis presented discounts on the old Chinese elements” in * celebration * from Tide Tide. “
The executive managers of the Omnicom Group Group, one of the largest advertising agencies in the world, said during the company’s profits in the first quarter on Tuesday that they were waiting for some of its largest customers to indicate how they planned marketing spending when they announced their own profits during the next few weeks. Omnicom has also reduced part of its revenues for this year.
“We were planning a glass that could be half -empty,” said John and Rin, CEO. “But we personally seek what we really think and believe in it for a long time, that we are optimistic and that it will end half full.”
The unconventional trade tactics of President Trump have been absent for the industry that still tends to plan. Within a few weeks, executive officials in the industry in New York City will be close to annual presentations, as media giants such as Disney, NBC Universal, and Netflix are displaying their new TV shows and broadcasting in the hope of locking in advertising contracts for two months. Comic-Con International, a major event to market pop culture, is scheduled to be held in July in San Diego.
Funko, a company that manufactures the holdings associated with famous entertainment brands such as Pokémon, spent $ 51.6 million last year on advertising and marketing, including fees to participate in events such as Comic-Con. The company said last month that the border disorders associated with definitions could delay delivery trucks and cause marketing stops.
The good food company, which is making snacks, said last week that if the customs tariff is delayed or disappeared, “our margins will improve, but we will probably re -invest this to work, and perhaps in marketing.”
Stone per cent of the American advertising executives expect the pressure of customs tariffs to a decrease from 6 to 10 percent in the budgets of advertising this year, according to a February survey by the interactive advertising office, a commercial group. Retail and e -commerce merchants are likely to cut off advertising spending, followed by consumer electronics companies, media providers, auto providers, and auto manufacturers, with discounts expected in the middle of the year.
WARC, a research company, has reduced spending on spending on spending over the next two years by $ 19.8 billion, explaining that “the risk of long stagnation – and the frank stagnation – has grown in the main economies, has exacerbated by a new trade tariff.”
Martin Sorel, founder of the S4 Capital and former WPP president, one of the largest advertising companies in the world, said caution will prevail at the present time.
“Generally, the mood will be very careful,” he said.
Since the customs tariff for foreign -made goods waved on the horizon, some companies announce their manufacture in American manufacturing. Publish Ford Motor video The day after the announcement of the customs tariff that claimed that the company used most automotive specialists and assembled most of the vehicles in the country. The place, which was closed with words “from America. For America”, was upgraded by Mr. Trump on his social media platform, Truth Social.
Stelantis, who owns Jeep and Dodge, for the first time in ads that described their cars as “built” in the United States. However, the Dutch auto manufacturer later faced charges from Advertisements for motives She was playing quickly and loose with the rules of the Federal Trade Committee that governs products that originally claim American. Stelantis has replaced its ads for new sites, which said the vehicles were “assembled” locally.
Many analysts said that trade fluctuations will force companies to search for flexibility in advertising deals, allowing them to re -customize their budgets or stop advertising campaigns that stop through them. They said the digital advertisement, where messages can be modified quickly and the results are easier to measure, will also help maintain costs in the line.
Publicis, a large group of French advertising agencies, acknowledged on Tuesday that customers “face a very difficult situation” about definitions and inflation may reduce their marketing budgets.
But after the company and its customers used to be unpredictable, after Covid and War in Ukraine used to be unpredictable.
He said: “Our customers are definitely warned, but they are also very competitors, and they are looking for opportunities for growth despite uncertainty.”