More confusion over tariffs and increased activity in ad tech mergers and acquisitions – AdExchanger

Advertisements are being rocked by the impact of tariffs across the United States. A recent survey conducted by the IAB in February revealed that a staggering 94% of advertiser decision-makers in the country are concerned about the repercussions of tariffs on ad spending, with 45% indicating plans to decrease their overall ad expenditure in the upcoming months. The response from advertisers is quite expected, as they aim to safeguard themselves in the face of protectionism, according to Brian Wieser, who is a principal at the strategic advisory firm Madison and Wall and a guest on The Big Story this week. Wieser highlights that this situation is unprecedented in the history of developed countries, noting that a trade reversal instead of the usual trend toward more open markets is occurring. The implications of imposing tariffs, Wieser states, are glaringly evident and produce the worst possible outcomes for the advertising industry.

Although the statement may sound political, Wieser contends that it is, in fact, an objective and apolitical observation. Tariffs lead to disruptions in the supply chain, inflation, and subsequently, higher prices for consumers. Moreover, if manufacturers are compelled to reduce production, they are unable to invest in advertising because it is challenging to promote products that are lacking. This scenario bears resemblance to the dynamics witnessed during the pandemic period. The impact of steel and aluminum tariffs on the automotive industry, which has a substantial presence in both Canada and Mexico, cannot be overlooked. Auto components traverse borders multiple times before being utilized in a vehicle, and this is prior to factoring in any potential reduction in consumer spending, which could further exacerbate the impact.

In a separate incident, Publicis recently acquired Lotame, a data management platform that has been in operation for nearly two decades. The acquisition raises questions regarding the rationale behind Publicis’ decision to purchase an aged DMP and how it will be integrated with Epsilon’s identity graph. AdExchanger Senior Editor James Hercher, who comprehensively covered the deal, provides insights into these aspects that necessitate careful consideration. The acquisition of Lotame by Publicis signifies another significant development in the continuously evolving landscape of ad tech mergers and acquisitions.