With household sentiment decreasing and input costs rising, advertising budgets are likely the next domino. Agencies like Omnicom and Publicis haven’t slashed forecasts yet, but they’re waving caution flags. Forvia has already pulled back on marketing and travel, while WPP warns sales may shrink up to -2% this year.
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Ad spending—always the first to go in uncertain times—is shifting away from splashy TV toward data-driven, lower-risk channels. Executives are describing 2025 as a year of “control and conversion”—a sign that the optimism of early-year earnings is giving way to defensive positioning. Even if a full-blown recession doesn’t materialize, the psychology of contraction is setting in. Tariffs aren’t just distorting prices—they’re distorting narratives, and companies are beginning to fall silent.

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