Economic pressures and fast-paced technological advancements are influencing the mediascape - notably, the cost of content creation, the advertising business model, and the competitive entertainment sector. And all this is significantly impacting advertisers and driving them to adapt quickly.  

From pressures on consumer household budgets to the tariff adjustments influencing advertising spending and platform shifts, and e-commerce businesses selling goods to consumers across borders, global economic uncertainty demands a readiness to pivot at pace. Here are four factors to consider when thinking media. 

1. Escalating energy
 Data centres utilize vast amounts of energy and are surging with AI usage. And with volatile energy prices against a background of global geopolitical disruption and uncertainty, digital media and ad-tech companies reliant on cloud computing face some risk to maintain speed, scale and uptime. All this is forcing media companies to factor in the rising cost of energy. Supply disruptions are also driving up supply chain costs across multiple sectors, which may be passed on to consumers, while rising infrastructure costs could impact ad tech’s real-time bidding, audience modelling, data processing and programmatic efficiency. 

2. Tariff turbulence 
 Global tariff turbulence is undoubtedly affecting many areas of business. But a proposed 100 per cent tariff on movies "produced in foreign lands" has analysts estimating that that this could result in USD $45 billion in lost advertising spending this year, and risk advertising budgets permanently shifting from traditional television to streaming services and digital platforms. Escalating tariffs on Chinese imports could also affect social media platforms, which rely heavily on ad dollars from Chinese e-commerce companies. It is already impacting businesses selling goods to consumers across borders via shoppable platforms.  

3. Addressing affordability 
To mitigate ongoing cost-of-living challenges, music and streaming platforms are creating ad-supported tiers to manage affordability issues. Media companies are also dialling up bundling options to also counteract subscriber loss – for example, bundling with other SVOD services, broadband and pay TV packages, and mobile providers. Global research shows almost three-quarters of people cancelled at least one content subscription at the end of 2023 with 59 per cent admitting to ‘subscription cycling’. 

   
   

4. Talking trust 
 AI is revolutionizing media engagement and serves as the force multiplier, identifying patterns and personalizing experiences at scale. Future-proofing the industry for best practice, AI optimization is critical as its emergence in media creates unprecedented opportunities for brands; however, a 2023 survey found that 81 percent of Americans think the information collected by AI companies will be used in ways people are uncomfortable with, as well as in ways that were not originally intended. And misuse of AI risks alienating audiences as well as fuelling churn through generic recommendations. Consumer trust represents a major challenge for media agencies and advertisers - especially those relying on paid search. Companies must also be mindful of the ethical implications of AI and ensure that their use of generative AI aligns with industry standards and consumer expectations. 

Agility and verified data are your competitive advantage

Media companies must stay agile and responsive to remain competitive. This includes investing in cutting-edge technologies, exploring new revenue streams, and continuously adapting business models to meet changing market demands. Data integrity is a non-negotiable and must be verified to ensure that it is trustworthy for informed decision-making. Verified data eclipses probabilistic approaches by removing guesswork and delivering stronger, more efficient results. It allows campaigns to achieve meaningful impact through precision, cutting waste while increasing effectiveness. The future of media lies in real-time, interconnected systems anticipating and activating across every channel. It’s about moving insights and action from descriptive to predictive to prescriptive. 

We’re building a seamless, adaptive, always-on media ecosystem  

At Circana, we envision a media ecosystem where businesses collaborate with us to align consumer behavior intelligence with purposeful media plans. This involves closing the loop between media exposure and tangible sales results. By introducing real-time data integrations, we can anticipate changes in consumer behavior and act proactively rather than reactively. This brings efficiency and effectiveness to the forefront, activating campaigns in real time and meeting consumers at every stage of their experience. Circana’s verified data, intelligent automation and AI-powered insights are now critical tools for future-proofing strategies and budgets – learn more in the Circana Future of Media Outlook Report.