"In August, the University of Michigan's regular sentiment tracker placed U.S. consumer confidence 10% lower than the same time last year, while 43% of American households say their finances aren't keeping up with inflation (2.9% at the time of writing), according to TransUnion survey data. One-quarter of consumers cite managing their budget as the biggest stressor during holiday season, per a Dentsu survey released in August."
"So, are marketers heading into an ambush? Unlikely. Though budgets haven't proven totally immune to pressure - ad-spend forecasts from several companies, including WPP Media, were downgraded earlier this year - investment hasn't fallen off a cliff. Marketers are taking measures to ensure they're not caught out by sudden changes in wind direction, but they're still foot-forward on media investment."
Holiday season is a critical revenue window as marketers seek to convert brand awareness into sales amid tighter margins from tariff-driven costs. Consumer sentiment fell about 10% year-over-year in August, while 43% of households report finances not keeping pace with 2.9% inflation. Budget management is a top holiday stressor for one-quarter of consumers, and 62% expect to finalize shopping decisions late in December. Sixty-six percent of marketers expect holiday spending to rise, but only 22% of consumers agree and 27% anticipate spending cuts. Marketers have trimmed some ad-spend forecasts yet continue cautious media investment and risk-mitigation measures.
Read at Digiday
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