Ad spending in the United States remains stable despite concerns over tariffs and potential policy changes, according to ad veteran Laura Desmond. While business leaders and retailers like Target and Walmart are expressing worries about the risks of a recession and the impact of tariffs on their supply chains, advertisers are currently maintaining their budgets and focusing on their core strategies. Desmond, formerly the CEO of Starcom Mediavest and currently the CEO of Smartly, a digital ad tech firm, provides a unique perspective on the advertising landscape. She points out that although some clients are considering the potential consequences of tariffs, especially those affecting consumer sentiment and shelf availability, the majority are still conducting business as usual. The digital advertising sector, in particular, is displaying resilience due to its consumer engagement, trackability, and flexibility. Unlike traditional media, where ads were often booked months in advance, digital platforms allow advertisers to make real-time adjustments to their budgets and campaigns. One critical factor to watch, however, is the anticipated impact of reduced shipping between China and the US over the next month to six weeks. This reduction, partly due to the tariff wars, has already led to significant drops in ad spending from companies like Shein and Temu, known for their fast fashion and online retail presence. Desmond notes that if shelves remain empty due to a lack of products, it could alter advertising plans and potentially lead to a more substantial reduction in ad spend. Consumer sentiment is another wildcard. Although spending is currently strong, rising interest rates and increased costs could dampen consumer confidence, affecting overall ad budgets. Desmond acknowledges that while consumer sentiment is declining weekly, actual spending remains solid. Clients are not yet pausing or delaying decisions, but they are scenario planning for possible future challenges. Industry insiders predict that digital ad spend could grow by about 12% in 2025, but a comprehensive implementation of tariffs could halve these projections. This potential downturn would impact all forms of advertising, including the resilient digital sector. For now, advertisers are maintaining a balanced approach, focusing on what they can control and preparing for various scenarios. Desmond emphasizes that both Chief Marketing Officers (CMOs) and Chief Financial Officers (CFOs) are prioritizing immediate goals, such as optimizing creative content and ensuring effective use of each advertising dollar. Companies are also monitoring consumer behavior and economic indicators closely to make agile decisions in an uncertain environment. The key message is that while there are valid concerns, the industry is not yet in a state of panic, and many advertisers are optimistic about weathering short-term disruptions. In terms of industry trends, the shift towards digital advertising continues to be significant. Digital platforms offer precise metrics and the ability to adjust campaigns rapidly, making them a preferred choice for many brands, regardless of the broader economic context. However, the coming weeks will be crucial in determining whether these optimistic outlooks hold true as the full impact of tariffs and potential policy changes becomes more apparent. Overall, Desmond's insight suggests that while advertisers are aware of the potential risks, they are taking a pragmatic and proactive approach to navigate the current economic uncertainties. The digital advertising sector's adaptability and resilience are key factors in maintaining stability, but continued vigilance is warranted to avoid sudden downturns.