What Scares TV Advertisers Most? Fears of Trump Tariffs, Sports Spending Will Drive 2025 Upfront

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Marketers pondering whether to invest billions in TV ads this year might find themselves torn between two fears: the apprehension of the unfamiliar and the anxiety of not being part of the trend. Which one scares them more is something they must determine.

In the start of 2025, Madison Avenue is facing numerous uncertainties. The choices made by advertisers will significantly impact the “upfront” market for the media industry, a time when U.S. media companies like Amazon and Paramount Global attempt to sell most of their advertising space.

As a dedicated cinephile, I’m always on the lookout for prime advertising spots during the year’s most anticipated events. However, it’s been challenging to plan my budget in advance due to uncertainty surrounding President Trump’s economic policies and tariffs. Their potential impact on consumer spending remains unclear. Moreover, TV networks have limited ad space in high-demand, big-audience programs such as NFL games, award ceremonies, and “Saturday Night Live.” If I fail to secure a spot now, there might not be another opportunity down the line.

Ryan Gould, co-president of U.S. ad sales at Warner Bros Discovery, notes that initially, there was a plan for both Q4 and Q1. Everyone seemed hopeful about these plans. However, those plans have been abandoned now, and everyone is in a state of uncertainty, simply observing and waiting.

A significant amount of money, approximately $9.34 billion for broadcast TV and $9.065 billion for cable TV, depends on advertisers’ perception of the national sentiment. These commitments for ad slots during last year’s “upfront” declined by 3.5% and 4.8%, respectively. This decrease in investment highlights a media sector undergoing rapid transformation as audiences shift towards streaming video and other platforms for their preferred content, including shows, movies, news, and sports.

Without a doubt, the dedication towards streaming video platforms saw a significant increase of approximately 35.3%, reaching a staggering $11.1 billion from $8.2 billion in the market of 2023. Interestingly, this committed sum for streaming video surpassed that allocated to primetime broadcast or primetime cable television – an industry first.

This year’s market predictions are proving challenging due to the unstable nature of tariffs, as highlighted by John Halley, President of Advertising at Paramount, who notes that marketers are finding it tough navigating such a volatile business environment.

Some analysts foresee a potential economic slowdown. Car advertisers struggle to find a balance between promoting electric and conventional vehicles, while retailers, restaurant owners, and others remain uncertain about the direction of the economy. Additionally, there are uncertainties regarding the impact of tariffs and Trump policies on one of TV’s major backers – the pharmaceutical sector.

Despite some challenges, there are promising areas. It appears advertisers are keen on linking their pitches and promotions with more widely viewed programs. As one purchasing executive explains, “A significant portion of our projected growth is in streaming and the NFL. Without these, the situation would be much more dire.

As a movie enthusiast, I’ve noticed an interesting shift in the TV industry landscape. It seems that TV networks might be holding stronger bargaining chips this year. Executives on both sides of negotiations acknowledge that the downward pressure on streaming ad rates, primarily caused by an oversupply of new content from platforms like Amazon Prime Video and Netflix, won’t be as intense as it was last year. In fact, some even predict a rise in ad rates (or CPMs, a term reflecting the cost to reach 1,000 viewers) for linear cable and broadcast. Rita Ferro, president of sales for Disney Advertising, succinctly puts it: “There is still more demand for linear broadcast than there are impressions to buy.

Some sellers are seeing beyond the current uncertainties. After all, the recent sales have been affected by the coronavirus pandemic, supply-chain problems, inflation, and worries about a recession. As Mark Marshall, NBCU’s chairman of advertising and partnerships, put it, “It doesn’t feel any more uncertain than the past five years of having some uncertainty in the overall economy.

In the annual discussions, sports are expected to hold a significant role. Already, NBCUniversal and Amazon have begun selling ad packages related to their upcoming NBA rights agreements, starting this autumn. Furthermore, NBC is making efforts to highlight its 2026 Super Bowl broadcast, as they might feel pressure to secure sports deals in the current climate. NBC plans to allocate part of its schedule for some months to NBA games, hoping that these matches will attract larger revenue and viewership compared to traditional entertainment. Additionally, NBC has a substantial amount of programming to fill during February 2026, including Winter Olympics events, Super Bowl, and NBA All-Star events. This means they need to garner support for premium programming.

How to effectively get rid of items not related to sports or live performances? Cater to the preferences of your potential buyers.

In challenging situations, advertisers aim to adjust their obligations to suit the current mood, a goal that executives endorse. These adaptations might involve postponing ad expenditures, or reallocating funds from traditional broadcasts to streaming platforms, or the reverse. “Indeed, they likely require some flexibility,” affirms Donna Speciale, president of U.S. advertising sales and marketing at TelevisaUnivision.

The original text conveys that in difficult circumstances, advertisers seek to alter their obligations according to the prevailing atmosphere, which executives support. This adjustment could mean delaying ad spending or switching funds from linear TV to streaming services, or the converse. Donna Speciale, president of U.S. advertising sales and marketing at TelevisaUnivision, agrees that they probably need some flexibility in these situations.)

As a movie critic, I must confess that I’ve been noticing some reassuring signals about the economic landscape. Contrary to the widespread anxiety, certain media corporations have reported resilience in their “scatter” advertising, which is essentially last-minute purchases closer to airtime rather than pre-planned inventory. Interestingly, at Disney, they’re reporting no signs of a slowdown in March or April, according to Ferro. This suggests that advertisers, if they genuinely require specific resources, won’t be deterred. Speciale echoes this sentiment, stating that she doesn’t foresee any significant scaling back in the sectors that fuel their growth.

Television networks must trust that recent high activity is a positive sign, but they also understand they need to be flexible and adaptable, ready to adjust their strategies as economic uncertainties arise. Disney’s Ferro encourages advertisers to engage in discussions, rather than holding onto their funds, stating, “Remaining idle without a strategy won’t be effective.

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2025-05-11 18:45