Why CTV and Digital Audio Are the Safest Bets for Advertisers Amid 2025 Tariffs

Disclaimer: Tariff regulations are subject to frequent changes, and their economic impact can vary based on timing and scope. While the insights shared in this post reflect current trends and programmatic opportunities, some details may shift as new tariffs are introduced or revised. The overarching strategies remain relevant, though specific outcomes may differ depending on the nature of the tariffs in effect at any given time.

 

The 2025 tariffs have sparked a new wave of disruption in the advertising industry, pushing brands and agencies to rethink every investment and navigate tighter budgets. With steep import duties, especially from key trading partners like China, many traditional channels are feeling the squeeze. But amid this economic shake-up, Connected TV (CTV) and digital audio stand out as agile, cost-effective, and surprisingly resilient. This article explores why these digital channels are not just weathering the storm. They’re leading the way forward in a rapidly shifting media landscape.

The Tariff Tidal Wave: A Quick Recap

First, let’s set the stage. The 2025 tariffs, championed by President Trump’s administration, represent one of the most aggressive trade policy shifts in recent memory. The administration aims to bolster domestic manufacturing and address what it sees as unfair trade practices by foreign competitors. In practice, however, these tariffs have sent shockwaves through global supply chains, driving up the cost of goods, squeezing profit margins, and injecting a heavy dose of uncertainty into the business environment.

The impact has been swift and severe. According to the Interactive Advertising Bureau (IAB), 94% of advertisers now fear that tariff-driven budget cuts are imminent, with 60% expecting ad spending reductions of 6–10% this year alone. The National Retail Federation has warned that U.S. retail growth will slow, and inflationary pressures are mounting as companies pass on higher consumer costs.

For marketers, this means every dollar is under the microscope. The days of “spray and pray” advertising are over. Brands must prove the value of every campaign, every channel, and every impression.

Not All Channels Are Created Equal: The IAB Survey

Advertisements must decide which ships to keep afloat and which to abandon when the economic seas get rough. An early 2025 IAB survey provides a revealing snapshot of how brands are prioritizing their ad spend in the face of tariffs:

• 41% of respondents said they would cut social media ad spend.
• 24% planned to reduce budgets for both gaming and linear TV.
• Only 14% planned to cut digital audio.
• Just 12% intended to reduce CTV spending.

This data reveals a compelling story: while companies cut social, gaming, and linear TV, they protect CTV and audio. But why?

Why CTV and Audio Are Proving Resilient

1. Precision Targeting and Measurable ROI

CTV has quickly risen in favor thanks to its ability to combine digital targeting power with traditional TV’s reach. Unlike linear TV, it allows brands to deliver personalized ads to specific audiences, maximizing every marketing dollar. As eMarketer Senior Analyst Sara Lebow says, CTV offers “more precise targeting compared to linear, so advertisers will be slower to pull back when they need to demonstrate ROI.” Similarly, digital audio delivers high-impact, context-aware messaging with advanced attribution tools that link exposure to measurable results, making it a go-to in today’s budget-conscious environment.

2. Programmatic Growth and Flexibility

CTV and audio’s embrace of programmatic buying gives advertisers real-time flexibility, enabling smarter spending, on-the-fly optimization, and precision targeting. In a climate where agility and budget efficiency are key, platforms like Spotify and leading CTV providers are streamlining access to impactful, measurable inventory, making it easier for brands to adapt quickly and invest where it counts.

3. Cross-Channel Synergy and Amplified Impact

A 2023 study by SiriusXM Media and Nielsen found that consumers exposed to both CTV and audio ads showed higher recall and message association than those who saw or heard ads on just one channel. The “1+1=3” effect means that brands can amplify their impact by using CTV and audio together, making them even more attractive as part of a streamlined, performance-driven strategy.

4. Smaller Baseline Budgets for Audio

While digital audio is growing rapidly, it still represents a relatively small slice of the overall ad pie. There’s less “fat to trim”-brands are less likely to cut audio spending simply because it’s already lean and efficient.

5. Brand Safety and Premium Content

As concerns about brand safety and misinformation plague social media platforms, CTV and premium audio environments offer advertisers a safer, more controlled context. Many CTV and audio platforms work directly with trusted publishers and content creators, ensuring that ads run alongside high-quality, brand-safe content.

The Broader Advertising Landscape: Shifts and Adaptations

While CTV and audio remain stable, the broader advertising industry is adapting to new challenges. Many brands, especially in manufacturing and retail, are shifting from broad awareness campaigns to more performance-driven marketing. The focus is on channels that offer measurable ROI and flexible budget allocations, criteria that both CTV and audio meet.

Performance-Driven Marketing Takes Center Stage

With every dollar under scrutiny, marketers are doubling down on channels that can prove their worth. Programmatic advertising is set for continued double-digit growth as companies pursue cost-effective placements that they can adjust on the fly. Some brands also embrace localized marketing, emphasizing “Made in America” messaging and targeting domestic consumers to sidestep tariff-related costs.

Media Companies and Agencies Adapt

Media companies and ad agencies are feeling the pinch, too. Some are adopting more flexible pricing models and performance-based contracts to retain clients. Cutting ad spending may result in job cuts, drive consolidation, and change the types of content produced.

Tech Industry Turbulence: Lessons for Advertisers

The tech sector serves as a cautionary tale—giants like Apple and Amazon, dependent on global supply chains, grapple with rising costs and stock volatility as they diversify manufacturing. While CTV and digital audio are less affected due to their software-based nature, the broader lesson is clear: Agility and innovation are critical. Businesses strive to optimize operations and maximize marketing budgets, leading to a growing demand for adaptable, data-driven channels like CTV and audio.

What the Experts Are Saying

Industry leaders are taking note of the shifting landscape. David Cohen, CEO of the IAB, recently commented, “Advertisers are facing unprecedented pressure to do more with less. Channels that offer precision, flexibility, and measurable outcomes like CTV and digital audio will be the winners in this new environment.”

Marketers are also rethinking creative strategies. With fewer dollars to spend, there’s a renewed focus on storytelling, authenticity, and content that resonates with audiences personally. With their immersive formats and engaged audiences, CTV and audio are well-suited to this new era of “quality over quantity.”

The Road Ahead: CTV and Audio as Essential Tools

What does the future hold? While no channel is immune to tariffs and economic uncertainty, CTV and digital audio stand out for their resilience. They offer brands a smart way to maximize ROI with precision targeting, programmatic flexibility, cross-channel synergy, and brand-safe environments. Companies face tighter margins and shifting conditions, so these channels aren’t just safe bets. They’re essential for building strong, future-ready media strategies.

Practical Tips for Advertisers Navigating the Tariff Era

• Double Down on Data: Use CTV and audio’s advanced targeting and measurement capabilities to ensure every dollar works as hard as possible.
• Embrace Programmatic: Take advantage of real-time buying and optimization to stay agile in a volatile market.
• Leverage Cross-Channel Campaigns: Combine CTV and audio for amplified impact and higher recall.
• Prioritize Brand Safety: Choose premium, trusted platforms to protect your brand and connect with engaged audiences.
• Stay Flexible: Quickly shift budgets in response to performance data or changing market conditions.

Safe, Smart, and Strategic

The 2025 tariff storm is compelling every brand to rethink its advertising approach. While some channels are trimming or cutting their budgets entirely, CTV and digital audio demonstrate their value as resilient, high-performing options. By offering precision, flexibility, and measurable results, these channels are helping brands weather the storm and may even emerge stronger on the other side.