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Meta and Amazon's ad businesses could get whacked by Trump's tariffs. Here are the other media companies at risk.
- Trump's new tariffs could put pressure on Meta and Amazon's ad businesses due to their reliance on Chinese advertisers.
- Ad industry analysts predict advertisers may shift to performance advertising and TV sports as a result of the tariffs.
- Amazon and Meta are expected to be major losers from the tariffs, affecting their revenue from Chinese advertisers targeting American shoppers.
- Analysts estimate that around $10 billion of Meta's US revenue comes from advertisers outside the US, primarily from China.
- The impact of tariffs is anticipated to affect all product categories and ad sellers globally due to complex supply chains.
- Tech giants like Apple, Meta, and Amazon face significant challenges as China is a key manufacturing hub for many products.
- Advertisers may seek performance guarantees and measurability from platforms like Google, Meta, and Amazon during this period of uncertainty.
- Smaller platforms such as Pinterest, Reddit, and Snap could face challenges as big advertisers may retreat to more established platforms.
- The television upfronts, a critical ad industry event, may face delays as advertisers navigate economic uncertainties caused by the tariffs.
- Media and entertainment companies, including Disney, Warner Bros. Discovery, and Netflix, could be impacted by reduced consumer spending and advertising slowdown.
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