Given their service-based offerings, advertising firms are less likely to feel a direct impact from tariffs. But the effect of tariffs on consumer spending and the economy as a whole will affect advertising spend from companies that must adjust to the tariffs.
Therefore, advertising firms may see slower growth than originally anticipated. For example, Magna Global forecasted some uncertainty around tariffs, but this was prior to clarity on the effect of the tariffs, which may have an even more profound impact than predicted.
According to a survey conducted in February 2025 by the Interactive Advertising Bureau, 94% of advertisers reported they were concerned about the impact tariffs will have on advertising budgets.
The most significantly affected channels appear to be advertising spend on social media (41%), gaming (24%) and linear TV (24%). High-growth areas such as connected TV appear to be less affected, with only 12% anticipating budget cuts in this area. According to the survey, advertisers will have to devise new strategies as tariffs drive up prices.
To learn more about advertising firms, visit RSM’s business services page.
To address some of the financial constraints, advertisers indicated they plan to:
- Reduce overall ad spend (45%)
- Increase focus on performance-based campaigns (35%)
- Shift to digital channels with better measurement (29%)
- Adjust campaign messaging (28%)
- Negotiate more flexibility (21%)
The takeaway
There will likely be a pull-back on advertising spending as a result of recent tariffs. As we mentioned in our latest business services industry outlook, those firms that add the most value, and measure that value, will be poised to weather the storm.
