Advertising Giants Brace for Tariff-Induced Cuts to Ad Spending

Source: Bloomberg

April 27, 2025 at 3:00 AM EDT


Advertising firms are bracing for a pullback in clients’ marketing expenditure, with the outlook for 2025 appearing increasingly muddled for the industry.

Though companies like Paris-based Publicis Groupe SA and New York-headquartered Omnicom Group Inc. both recently dispelled the idea that tariff uncertainty had already squeezed clients’ marketing budgets, they did not dismiss the possibility of a bumpy road ahead.

“Of course, many of our clients are facing a very challenging situation due to uncertainty on tariffs, rising inflation and a geopolitical context that is more volatile than ever,” Publicis Chief Executive Officer Arthur Sadoun said on a call with analysts. Though this hasn’t yet materialized in the company’s numbers, “we could experience cuts from several clients across many industries for the rest of the year,” he added.

Some companies are already tightening budgets. Forvia SE, a supplier of automotive parts, slashed marketing and travel expenses as it expects tariffs to hurt business. “Any external cost, any cash that runs out of the company is under strict scrutiny right now,” Chief Financial Officer Olivier Durand said on an earnings call. The car industry, one of the sectors most vulnerable to a trade war, is likely to lead the way in curtailing ad spend, according to Bernstein analyst Annick Maas.

Read more: https://www.bloomberg.com/news/articles/2025-04-27/advertising-giants-brace-for-tariff-induced-cuts-to-ad-spending?srnd=homepage-americas