Donald Trump's presidency and its tariff policies have significantly impacted U.S. advertisers and are causing ripples globally. A report from WARC and the Advertising Association has downgraded the U.K.'s ad spend growth forecast, predicting a rise of 6.3% in 2025, amid stagnant economic growth. Businesses are reacting with caution; a survey indicated a notable increase in budget cuts among British marketers. European firms advertising in the U.S. are also struggling with decisions on expenditure versus market supply, leading to campaign delays and a focus on performance marketing to maintain brand equity.
"The way that's manifesting at the moment is hesitancy to commit budgets," he said.
"More U.K. businesses have adopted a cautious, 'wait and see' approach to marketing spend this quarter," IPA director general Paul Bainsfair said in an email.
"You don't want to advertise something you can't supply," noted Ruben Schreurs, Ebiquity CEO. "At the same time, suspending all advertising has an impact on your brand equity ... it's an incredibly complicated balancing act."
"The market has again become quite nervous, and in some cases, are even canceling project work, delaying major campaigns and redirecting media spend toward performance channels."
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