Some brands in the U.S. cut media budgets, want flexibility and ROI after Trump tariffs

President Donald Trump’s global tariffs are pushing some advertisers in the U.S. to scrutinize their media investments, hunting for efficiencies.

“We’ve had to make some pretty significant cuts to media budgets across a handful of our clients already,” says Tamara Alesi, CEO at Mediaplus North America, part of Serviceplan Group, Europe’s largest indie agency group.

Mediaplus works with leading international brands across home appliances, digital platforms, food and produce, premium spirits and technology.

“[Clients are] trying to be good brand stewards and keep the cost to the consumer flat. They’re taking the cut to their bottom line versus the customer’s wallet,” Alesi says.

Such marketers are likely bracing for American consumers to spend less, with price hikes expected across virtually all goods.

Some — 62% of Americans concerned about tariffs — have already cut back on nonessential shopping, based on surveys by CivicScience before April 2 and shared with The Current.

B2C brands have been most impacted, Alesi says, although she foresees B2B brands will be affected soon too.

“We hope that this is a short-term decision, which Trump and his administration realize will backfire and will pull back,” Alesi says. But for now, clients have had to make cost adjustments throughout the year “to ensure that they’re able to manage this business impact.”

How it’s playing out

Some brands are putting their media investments under a microscope.

Even before cutting budgets, Alesi asked: Could we deliver the same reach with a more efficient publisher?

Yes, it turns out. Mediaplus saved a client partner $1 million by moving investment to different publishers while keeping the same tactical approach to reaching consumers.

“Our job as their agencies is to find clever ways to deliver the same reach and impact, with hopefully the same or reduced cost if needed,” Alesi says.

What will happen at the upfronts?

A survey of U.S. advertisers in February found that most were looking to increase media budgets, says Eric Haggstrom, VP of business intelligence at Advertiser Perceptions, a research firm.

But tariffs came in “quite a bit higher than expectations,” Haggstrom says. He now expects “significant headwinds in specific industries.”

“The economic uncertainty surrounding the tariffs roiling Wall Street and multinational corporations may very well impact on long-term media planning at agencies,” says Barry Frey, president and CEO of DPAA, an industry trade body for OOH advertising.

The upcoming upfronts season will be a test of whether media owners can offer the flexibility and clear ROI that advertisers will likely ask for.

“If I was a brand, I would be reconsidering my upfront commitments,” Alesi says.

COVID-19 taught marketers to be agile, she adds. “We shouldn’t be concerned with having huge amounts of investment locked down for quarters at a time where we can’t have cancelations.”

To that end, agency leaders are guiding clients toward media strategies that allow for quick pivots. “Some of our clients are reconsidering big, upfront commitments in favor of approaches that offer more control and agility,” Deanna Cullen, head of media investment at Wpromote, tells The Current. "Programmatic opens up a lot more room to maneuver in a tough environment; that flexibility can also help us capitalize on chances to gain ground instead of just weathering the storm.”

Still, as history shows, pulling marketing budgets could have negative long-term consequences.

“We’ve seen how economic uncertainty can derail marketing strategies — during downturns, during the pandemic, and now with rising tariff pressure. And we know many brands will repeat the same mistakes: they’ll go dark. They’ll wait. And they’ll lose,” says Stephanie Spicer, the president of lūquire. “The brands that lean in won’t just weather this—they’ll gain ground. Silence isn’t a strategy.”

This mindset is echoed by others in the industry, who see opportunity in being proactive rather than retreating.

“The right move isn’t always to pull back, but to rebalance, using data to optimize spend across brand and performance with a focus on protecting return today while positioning for growth tomorrow,” says Shannon Kast, SVP of client services at Ovative Group.

For the foreseeable future, two words are likely to reign supreme for advertisers in the U.S.: flexibility and ROI.

“There’s no line of clarity you can follow,” Alesi says.