19 ad leaders on how Trump tariffs and the economy are impacting brand and media strategy

Published: April 11, 2025

Tariff trauma is setting into all corners of ad land as brands adjust business plans in a newly chaotic economy caused by the unpredictable tax policy controlled by President Donald Trump. Tariff talk is coming up in earnings reports, with brands such as Constellation Brands, Delta and Levi’s mentioning their potential impact. For advertisers, the trade war is prompting the industry to reckon with how a “hungover” economy might affect media budgets.

“There is no doubt that the marketplace will be challenging without improved stability and optimism in the financial markets, supply chain and consumer sentiment,” David Cohen, CEO of IAB, wrote in an e-mail.

The general mood seems to be to act fast and adjust, but don’t show panic. Ad leaders are making similar utterances to those during previous crises like the pandemic and the housing bubble, when they urged brands to maintain marketing budgets and not to run scared. Whether that advice holds up, remains to be seen.

Ad Age asked 19 industry leaders about their thoughts on the current economic climate. Their responses have been lightly edited for length and clarity. The responses are grouped into categories—ad trade groups, ad tech, agencies and consultancies, beverage brands, finance and tech, and retail—and the leaders are listed alphabetically in each category.

Here are three takeaways:

Flexibility is the new priority: “We’re in an era of ‘flux marketing,’ where plans must be built to shift daily or weekly,” said Jonathan Gudai, CEO of AdOmni
Performance on the rise: “We will see a shift toward more performance vs. brand marketing,” said Bill Koenigsberg, Horizon Media.
Brand-building remains essential: “In recessionary times the need for brand-level advertising is even greater,” said Kerry McKibbin, president of Mischief USA.

Read the full responses below:

Ad tech

Jonathan Gudai, CEO, AdOmni

This is a fast-moving situation. As of Thursday, brands dependent on Chinese imports—especially in sectors like consumer electronics—are feeling the squeeze. Delays at Chinese ports are already leading to inventory shortages in the U.S., which is a real problem if you’re stuck marketing a product that isn’t on the shelf. The ripple effect on the ad market is significant: digital media budgets (which can be adjusted in real time) are being throttled down, while brands locked into rigid buys like linear TV or static out-of-home are stuck promoting goods that can’t be delivered. That’s a painful place to be.

The most resilient marketers have already shifted a majority of their media budgets to controllable formats, including social media, programmatic display, video and programmatic digital out-of-home. With automated buying platforms, brands can react in real time by pausing, scaling or redirecting spend with a few keystrokes. COVID-19 trained marketers to adopt more agile planning and buying models—tariffs are just the latest curveball.

We’re in an era of “flux marketing,” where plans must be built to shift daily or weekly. The key is infrastructure, meaning having systems in place and empowered marketers (planners and buyers) that let you adapt as quickly as the world changes.

Michael Shaughnessy, chief operating officer, Kargo

Tariffs are cranking up the pressure—costs are rising, margins are tight and old-school media buying like upfronts just isn’t built for this kind of climate. Brands need flexibility, speed and performance—not a year-long commitment.

Shoppers are watching their wallets but still making room for the brands they trust, and that trust is earned through consistency. Going dark might save a few bucks now, but it hands the mic to your competitors. And the data backs it up—brands that keep advertising in tough times come out stronger.

The smart money is shifting to agile, always-on strategies. Programmatic, real-time targeting and smarter segmentation—it’s all about doing more with less and making it count. Now, with the ability to unlock access to real-time insights, brands can reallocate budgets on the fly and spend smarter. It adds a level of actionability to always-on advertising that just wasn’t possible with traditional TV.

The brands that nail both performance and brand-building are the ones who’ll pull ahead while everyone else hits pause.

Jonathan Slavin, chief business officer, Infolinks

Many brands are already getting squeamish. Advertisers will face unprecedented uncertainty for the foreseeable future. The often, quickly accepted “programmatic tax”—consuming 50%-plus of most ad dollars—will face scrutiny as focus shifts toward lower-funnel performance. Brands are moving fast to “commitment-free” approaches and partners for flexibility; versus investing the lion’s share of budgets into annual upfronts.

Economic pressure will force brands to confront digital marketing’s bloated supply chain. Campaigns are drowning in inefficient data layers, redundant verification services and empty AI promises. Advertisers will discover they’re funding a frighteningly large number of “vendors” before a single delivered impression is recognized.

Vlad Stesin, co-founder and chief strategy officer, Optable

During economic downturns, marketing budgets come under pressure and advertisers shift their focus toward efficiency and accountability. This creates a strong tailwind for performance-based and measurable ad products—solutions that can clearly demonstrate [returns] through conversions, leads or sales. Channels that offer precise targeting, closed-loop measurement and real-time optimization become especially valuable as brands demand results they can justify.

These periods often lead to a shakeup in vendor relationships, with marketers more open to trying new, outcome-driven solutions that offer better performance or cost-effectiveness. In uncertain times, measurability becomes a must-have, not a nice-to-have, giving ad products with strong attribution and clear business impact a meaningful edge.

Ad trade groups

Alison Pepper, executive VP, government relations and sustainability, 4As

Advertisers should expect consumers to keep a close grip on their wallets until the fear subsides, and when that’s going to happen is unclear. At this point, whether the tariffs end-up being 104%, 10%, 0% or anything in between, there’s unfortunately been at least, in the short-term, impact to consumer confidence. The S&P 500 and Dow Jones might bounce sharply up on any morsel of good news, but the human mind doesn’t bounce back quite that quickly once the survival instinct kicks in.

Consumers are likely bracing for a recession and are tightening their belts, and the rhetoric coming out of Washington unfortunately isn’t doing much to calm anyone’s nerves. For many advertisers, their supply lines are still closely tied to China, while many have likely stockpiled goods leading up to recent events, those stockpiles won’t last forever. If China and the U.S. don’t reach some detente on tariffs sometime soon, those advertisers will be left with difficult decisions around trying to find new supply lines. No product, no advertising.

David Cohen, CEO, IAB

Economic uncertainty including tariffs, ongoing geopolitical conflict and changing consumer sentiment is creating ripple effects throughout the advertising industry. Just as we saw during the pandemic, when brands face this kind of volatility, the tendency is to reduce spend, prioritize flexibility and focus on performance-driven channels. Back in February, we asked buyers how tariffs might influence ad spend—and 94% of advertising decision-makers voiced concern about the potential hit to their 2025 budgets.

More on the economy

Agencies and consultancies

Deanna Cullen, head of media investment, Wpromote

As a legacy performance agency, this is just another moment in time where we demonstrate all of the critical infrastructure and productivity that we’ve already put in place on our clients’ behalf, and really demonstrate the value of an agency and what we can do as their stewards and what will materially help them through any moments, both downturns and boom moments for their brands.

A lot of the conversation that we revive during periods like this is that we don’t want to sacrifice brand building. And so, for example, if we had a large client that might be affected by tariffs or any other kind of economic downturn, the conversation that we would have is to remind them of all the proof points about why it’s important to continue to invest in your brand.

Hasan Ramusevic, CEO, Hasan + Shumaker

We’re advising clients not to swing the pendulum entirely toward short-term performance tactics. Brand and performance can—and must—coexist. Panic-spending on activation may feel necessary in the moment, but forsaking brand equity and consumer connection in the process creates a steeper climb post-recovery. We’ve seen this pattern before. Economic uncertainty drives short-term thinking, but history favors the brands that continue to invest in their identity and resonance. That creates a rising need for agency partners who can flex.

Marketers need partners that can reorient priorities, do more with less, and adapt without losing what makes the brand special. [As for Hasan + Shumaker], tariffs haven’t made us more expensive to work with or anything, but they are part of a larger economic picture that is absolutely changing the nature of our work. In some sectors, client budgets are shrinking significantly. That affects scopes of work, agency compensation models and the structure of client-agency partnerships. We’re helping clients step back and focus on sustainability—how to protect the strength of their brands, preserve essential partnerships and stay competitive even as resources get tighter.

Bill Koenigsberg, CEO, Horizon Media

The mantra of the moment among many marketers across many categories is caution, agility and flexibility. The largest fear is possible recession driven by inflation, cost of goods, disruption of supply chain, potential rise in unemployment, all driven by tariffs. The consumer is seeing all kinds of yellow-flashing lights not knowing if they will turn green or red. We will see a shift toward more performance vs. brand marketing with value and benefit at the center. Demand creation for all categories will be paramount with media dollars needing to be stretched. A softening of media spend will follow if and when consumers start to pull back.

In down times it will be a mixed bag of winners and losers. Spirits, sports betting, live entertainment and home goods should fare well with higher-ticket luxury not so well, along with those products significantly impacted by tariffs. It is still too early to tell where we will end up, so scenario planning, tone and messaging of creative, pricing and forecasting are all part of the equation. Many companies will pull back guidance for the year until a clearer picture is seen. So pause, do not panic and have the flexibility to react to market dynamics.

Kerry McKibbin, partner and president, Mischief USA

The biggest thing here is for clients to remember they need to continue to invest in the brand. Recessions often result in very reactionary C-suite behavior about marketing. Slash the budgets; discount products or offer limited-time deals. But this can lead to a cycle where customers just wait for the sales and never pay full price, eroding long-term margins, and huge dips in brand health.

In fact, it’s arguable that in recessionary times the need for brand-level advertising investment is even greater because you need to give people emotional reasons to buy that supersede the rational objections they may have to price. Basically, how can you make consumers love you so much that your brand or product is worth the cost?

Thomas Kolster, founder and creative director, Copenhagen-based Goodvertising Agency

There’s a growing sense of anti-U.S. sentiment across Europe. It’s unclear whether this will directly affect media buying—especially since U.S. tech companies still dominate many markets. However, even before the current U.S. administration, several European countries were already working to strengthen their own national media ecosystems, which play a crucial role in supporting journalism, public services and local infrastructure.

Beverage brands

Paris Hogan, principal consultant, Mintel

For beverage giants, the real threat isn’t just increased costs, it’s the potential erosion of consumer trust and allegiance. Tariffs could force companies to raise prices, but the way brands choose to absorb or pass on those increases will determine whether consumers stay or stray. Private label is ready to pounce, offering lower-cost alternatives with growing credibility and appeal. One misstep and a loyal Coke drinker could become a store brand regular.

[Also read: Why Walmart is taking on big beer with contracted brews]

Nadine Sarwat, equity research analyst, Bernstein (in a note to Wall Street)

The U.S. consumer is already fragile. Pressured consumer wallets, especially for low-income households, is already a meaningful drag to alcohol consumption. Should these tariff policies lead to further inflation (and therefore even more pressure on consumer wallets), this has the potential to place further pressure on alcohol volumes.

Kirk Thompson, partner and chief marketing officer, consultancy Chief Outsiders

For food and beverage marketers, tariffs add another layer of volatility, complicating the already complex math of pricing strategies. This additional factor challenges the balance between profitability, margin and consumer satisfaction. It also affects perceptions of value for money, making the support of transparent and authentic messaging more important. Whether we’re talking about seasonal produce, limited-supply flavors or specialized ingredients, pricing strategies always face challenges. Variable or situational costs, such as the sustained impact of avian flu, add further complexity. Strong food and beverage brands will leverage their experience in managing these added cost pressures while maintaining customer satisfaction and trust in the brand to navigate these issues effectively.

Finance and tech

Kasia Leyden, chief marketing officer, Acorns

We’re very attuned to the financial anxiety many consumers are feeling right now, and it influenced our marketing within hours. Rather than leaning into stress or panic, we’re focused on inspiring confidence, calm and elevating financial education and resources for the everyday American. Our goal is to meet people where they are—acknowledging the pressure they’re under and helping them feel more in control of their financial wellness.

That means spotlighting practical facts and tools and ensuring that every message we put out is rooted in empathy and usefulness. Our message to customers is simple and grounded in facts: Investing your money in a diversified portfolio over time gives it a chance to recover and grow long-term.

Keely Spillane, VP of communications and brand, NerdWallet

Tariffs are a prime example of the kind of complex topic we aim to provide clarity around. We do that by offering trustworthy content, expert insights and tools that help consumers understand how broader policy changes, like tariffs, may affect their wallets: from investing to day-to-day spending.

We’ve shared initial guidance through our social channels and are continuing to explore additional ways to break down what this means for our users, helping them stay informed and make smart money moves, even in uncertain times.

Angela Zepeda, head of global marketing, X

I did see the consumer sentiment report that came out the other day, that it has lowered, And things like big changes, whatever it is, tend to unsettle consumers. And this is the thing, I think, makes people question where they put their ad dollars, and what messaging they [should] put out there. In general, people feel like, until things calm down, and we know exactly where we’re going with things, people feel a little unsettled.

For the auto industry, because that was my old industry [as Hyundai’s chief marketing officer], I do think it’s interesting to see brands that lean into a situation and maybe spend more or continue to spend. Brands like Ford, Mercedes, Hyundai, they came out with strong programs for consumers … They all had a different spin on it, but basically [they’re] going to hold [manufacturer’s suggested retail] prices until the tariff thing is figured out, giving consumers the peace of mind. I love those kinds of programs and consumers do too. It gives them confidence.

Brands that are smart figure out ways to come up with programs or messaging that let consumers feel a little bit of peace of mind.

Retail

Manish Chandra, founder and CEO, Poshmark

As the landscape of tariffs and imports evolves, we believe the secondhand marketplace will become an increasingly valuable and cost-effective resource for American consumers. Our platform enables individuals to not only find incredible value and pre-owned fashions but also to participate in the growth of circularity. By shopping from Poshmark closets or starting their own, consumers are supporting sustainability and helping strengthen the American economy.

Marisa Thalberg, consulting chief marketing officer, JCPenney

[On tariffs] we’re evaluating like every company. We really care about putting the customer at the center of everything. That doesn’t change and we will stay agile. [The new campaign] is the story that should be told about JCPenney no matter what. And if the economic conditions create heightened pressure, it’s only more important that people feel a little bit of levity and being in on it with us and being open to something they might not have considered a gratified shopping experience for themselves and their family.

Written By: AdAge Staff

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