Ad Agencies Say Clients Stay Steady But Cautious Amid Economic Uncertainty.

Despite this year’s unpredictable economic climate, the big advertising agency giants say clients are not pulling back on ad spending, but they say marketers are becoming more calculated with how they allocate their resources. For radio and audio sellers, the message is clear — the big brands are sticking with their plans, even if they are keeping a closer eye on performance.

Interpublic Group CEO Philippe Krakowsky said the year has unfolded in a “more volatile” environment than expected, but clients aren’t panicking. “Marketers as a whole are not reacting reflexively to the changing business and geopolitical landscape,” he said on his company’s quarterly call with analysts. “Clients are assessing developments very methodically and continue to engage with us constructively in order to evaluate their alternatives.”

Krakowsky said that includes assessing investment levels, channel mix, or the mix of marketing disciplines required to deliver against their desired business outcomes. He said each situation is also different, depending on which industry, geography or sector they operate in — and their potential exposure to things like higher tariffs. Krakowsky said that has meant some clients are weathering better than others, but during the first half IPG’s seeing spending “consistent” with what had been expected. “We’ve not seen a marked change in net client activity,” he told investors. IPG’s roster includes media buying shops Mediabrands, Initiative, Magna, and The Martin Agency.

At Omnicom Group — parent to media agencies like OMD and PHD — CEO John Wren painted a similarly stable picture. “Other than some specific client traffic issues, I don’t think the environment’s changed all that much,” he said. “It’s business as usual for the most part.” Wren acknowledged macroeconomic concerns—particularly surrounding potential policy changes—but dismissed the idea that they’re weighing heavily on advertiser demand. “If there’s a little bump in the road someplace, it’s nothing more than just that. And we will collectively get through it together in a very constructive way.”

Publicis Media, the Paris-based home of media shops including Starcom, Zenith and Digitas, offered a similar assessment. CEO Arthur Sadoun said clients remain “combative, but also cautious,” adding, “We have not seen any change from Q1 to Q2 in terms of investments.” He said his company’s earnings call that he believes what marketers when through during the pandemic has made them less likely to get wobbly with facing economic uncertainties in 2025.

“They went through very tough time with COVID, with inflation, and at this stage, they are continuing to invest because they know that they have to keep their market share,” Sadoun said. “We haven’t seen any material reduction of any kind from the first to second half.”

All three holding companies reaffirmed their full-year revenue outlooks, despite the uncertain climate. And all three reported media as a standout performer — buoyed by data-driven tools, outcome-based contracts, and clients’ continued prioritization of efficient reach.

Yet not all the conglomerates are holding on quite as well. WPP says it saw weaker revenue in Q2 vs. Q1 as lower client spending impacted WPP Media. “While we expected the second quarter to be similar to the first quarter, performance in June was worse than anticipated and we expect this pattern of trading in the first half to continue into the second half,” CEO Mark Read said in his midyear update.

Yet mid-year forecast updates released by several advertising agencies suggest a better year than things appeared in the spring. The media agency Group M released a midyear update to its advertising outlook in June. It now projects the U.S. ad market to grow 5.8% this year. That is a half-point stronger than its earlier projection.

In May, Dentsu revised its U.S. forecast to 4.6% growth in 2025. That is four-tenths of a percentage point better growth for this year from where it stood in December.

For radio, the implication is that although CMOs may be watching their budgets more closely, they’re not walking away from media investments that deliver performance.