Guest Brian Wieser, a principal at Madison and Wall and a respected voice in advertising, discusses the significant impacts of U.S. tariffs on the ad industry. He highlights how supply chain disruptions are forcing advertisers to rethink spending strategies. Alongside him, James Hercher from AdExchanger delves into Publicis' acquisition of Lotame, revealing how this move aims to strengthen client-consumer relationships in a rapidly evolving market. Expect insights on navigating ad tech transformations and the implications of rising production costs.
The implementation of tariffs in the U.S. is expected to disrupt supply chains significantly, leading to a pullback in ad spending across various sectors.
Publicis' acquisition of Lotame aims to enhance its data capabilities, enabling better consumer connection and improving advertising effectiveness in a challenging market.
Deep dives
Impact of U.S. Tariffs on Advertising
The implementation of tariffs by the U.S. government, intended to protect American industries, is expected to have significant unintended economic consequences. Concerns among advertisers have reached a high rate, with nearly all fearing a negative impact on their ad spending due to increased costs of goods. Specific sectors, such as the auto industry, could be particularly hard-hit, facing supply chain disruptions that may exacerbate ad spending pullbacks as manufacturers re-evaluate their advertising strategies. As inflation rises and consumer purchasing power declines, the overall advertising market may experience a slowdown in growth, complicating financial choices for brands reliant on stable market conditions.
Publicis' Strategic Acquisition of Lodemy
Publicis' acquisition of Lodemy represents a strategic move to enhance its data capabilities within the advertising landscape. Initially starting as a data management platform, Lodemy has successfully evolved alongside industry changes, transforming into a player that embraces data collaboration. The combination with Epsilon's identity data is expected to allow Publicis to connect with over 90% of consumers globally, significantly enhancing its advertising offering. This acquisition is particularly timely as it aligns with Publicis’ goals of integrating comprehensive technology solutions to improve advertising effectiveness.
Advertising Trends in Response to Economic Uncertainty
In the face of economic uncertainty stemming from tariff impacts, advertisers are increasingly shifting their focus toward performance-based campaigns. Reports indicate that nearly half of advertisers plan to reduce their overall spending, particularly in social media, as they react to the evolving market conditions. However, the increasing emphasis on performance-driven advertising points towards a reliance on major digital platforms like Google and Meta, which are perceived as leading channels for effective advertisement outcomes. This shift not only highlights changing strategies in ad spend but also underlines the fragility of traditional advertising methods amid fluctuating economic conditions.
Tariffs are taking effect in the US, and advertisers are shook. Our special guest, Madison and Wall’s Brian Wieser, weighs in on the “blindingly obvious” consequences of implementing tariffs, including supply-chain disruptions that lead to a pullback in ad spend. You can’t promote what you can’t produce. Plus: the rationale behind Publicis’ acquisition of Lotame.
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