A Trump Win Could Cause Agency Profits To Plummet

According to Business Insider, it would appear ad agencies will be in "real trouble" and experience a shocking drop in profits in the fourth quarter if Trump wins the Presidential election. Well, at least according to the one source they interviewed for the article.

When asked what effect a Trump presidency might have on the advertising world's fourth quarter, Liberum analyst Ian Whittaker noted that a Trump win could spell a "short, sharp shock" to ad spend and said: "A lot of media work takes place in the fourth quarter. Advertisers often decide, when they come to the end of the year, to look at their surplus budget and spend that on ad hoc projects. If there is a Trump victory you might get a short, sharp shock in terms of confidence and advertisers might not spend on that ad hoc project work."

Explaining further, Whittaker added: "Trump has interesting proposals on business: If you don't employ in the U.S., you'll get penalized with the tax system; he's made speeches on trade and seems anti-free trade. A lot of businesses would get worried by that, a Trump government could tear up the trade proposals on the table at the moment. So they may be inclined to freeze their spending, take the cautious approach and decide they're not going to spend their cash."

A drop in ad spend will be the least of our worries if Trump wins the election. Then again, there’s always a bit of skittishness no matter who sets foot in the White House.



1 comment about "A Trump Win Could Cause Agency Profits To Plummet".
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  1. Mark Mueller from Bravalia, September 16, 2016 at 10:52 a.m.

    Media bias is alive and well in America. 

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