Marketers Brace For Leaner Budgets Amid Economic Uncertainty: Nielsen

More than half of global marketers are planning to reduce advertising budgets this year, according to new research from Nielsen, signaling a broad pullback in ad spending amid rising economic headwinds and shifting consumer sentiment.

Following a robust year in 2024, 54% of marketers surveyed worldwide said they intend to cut ad spending in 2025. While the reasons vary across industries and regions, the trend points to a widespread belt-tightening that will force brands to do more with less.

In the tech sector, supply-chain tensions are driving the retrenchment, while financial-services firms are responding to waning consumer confidence and persistent housing-market challenges in the United States. In Europe, slow economic growth and the ongoing war in Ukraine continue to weigh heavily on marketers' plans.

Despite the budget cuts, marketers are under no illusion that expectations will be lowered. Many anticipate the same -- or higher -- performance targets, placing renewed pressure on teams to stretch smaller budgets further.