The retail media boom faces scrutiny amid new tariffs and potential recession, prompting advertisers to reconsider joint business planning (JBP). Many are cautious about commitments due to concerns over transparency and measurement, resulting in more hesitant negotiations. Agency executives report a shift towards seeking flexible JBP terms, allowing for adjustments in spending without penalties. As economic pressures rise, brands are prioritizing adaptable agreements to mitigate risks associated with fluctuating costs from tariffs, suggesting potential changes in the dynamic between brand clients and retailers.
If I was a brand, I'd be cautious about signing anything this year unless there's extreme outs and all this stuff. I wouldn't be putting all my money into any basket.
Brands will be looking for more flexibility there as a pressure release valve in their JBPs for potential increased pricing depending on how the tariffs manifest.
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