The Great Ad Spend Pullback: Insights and Survival Tactics for Marketers

By Gulab Patil, CEO, Lemma

Over the past year, a wave of economic uncertainty has forced marketers to do more with less. Industry forecasts from GroupM, the IAB, and eMarketer all point to slowed ad spend growth and heightened scrutiny over where and how advertising dollars are being allocated. The analytics firm WARC recently downgraded its growth forecasts for advertising spend by 0.9 percentage points to 6.7% in 2025 and by 0.7 percentage points to 6.3% in 2026, which equates to a $19.8 billion cut in ad spend over the two years. And an Interactive Advertising Bureau (IAB) survey found that 94% of US advertisers are worried that tariffs will force budget cuts. Most (60%) expect ad budgets to drop by 6-10%, with nearly a quarter expecting even steeper reductions. The study found that around 45% of advertisers plan to reduce overall ad spend.

These numbers, and the trends underpinning them, are hardly surprising. Advertising may be more accountable than it’s ever been, but it’s still one of the first areas where companies typically look to save money in tough times. But I believe the current economic uncertainty presents brave brands with a golden opportunity to stand out from the crowd. Here’s my five-point plan to make the most of it.

Never Waste a Good Crisis – While many brands instinctively go “media dark” during downturns, this can be a prime opportunity to capture market share. With fewer competitors in the space, smart brands can stand out by staying present. For sure, look at your media investments with a heightened eye for detail and make sure every dollar you spend is being spent in the right places, but don’t follow the crowd and pause your advertising. All the time, effort and money you have invested in building your brand down the years can be quickly undone when brands pull their advertising budgets in tough times, even if only for a few weeks or months.

Explore New Digital Formats – Yes, banner blindness is a thing, but there really is no excuse for running boring ads. From interactive display ads to native rich media, vertical video and playable ads for gaming companies, there are an infinite number of interesting and engaging ways to get your message across. Working with the right partner, you can also tailor your ads to different customer segments, using AI-powered Dynamic Creative Optimisation so that your messaging resonates with the people who see it.

Embrace Programmatic – As media consumption shifts to digital channels, programmatic buying is becoming the standard. Its transparency and efficiency make it essential for maximizing the value of every advertising dollar you spend. And programmatic is evolving beyond its open auction origins. Private Marketplace deals, curation and supply path optimization enable advertisers to run ad campaigns at scale programmatically in the knowledge that their ads will appear in brand-safe environments, and be seen by the people you want to reach.

Leverage Impactful Digital Formats – Digital advertising is an ever-evolving world of new opportunities and channels. Connected TV (CTV) and Digital Out of Home (DOOH) are two of the most exciting right now. They offer cost-efficient, large-format visibility, delivering high-quality impressions with precision targeting and strong brand recall. CTV enables brands to reach consumers in their own homes with precisely targeted campaigns, while DOOH serves up on-the-move audiences in high volumes in shopping malls, bars and restaurants and other high footfall destinations.

Leverage Omni Channel Platforms to Simplify Media Buying –  The advertising landscape can sometimes appear a complex one, with so many channels – mobile, web, social, CTV, DOOH – to navigate and so many ad formats to explore. But unified buying platforms remove the complexity, empowering brands to access multiple channels and optimise campaigns from a single interface. This simplifies execution, improves measurement, and ensures consistent audience reach across multiple channels.

The advertising opportunity

For sure, there are some uncertain times ahead, and marketers are right to proceed with caution right now. But for those advertisers who have the courage to keep the advertising lights on and experiment with new formats and channels, there is a great opportunity to turn the current uncertainty and nervousness to their advantage. This is not a time to stop advertising, but rather, to spend advertising budgets more intelligently, more creatively, and more efficiently.