Nielsen Tells Ad Gathering That Audio Delivers ROI As Marketers’ Budgets Tighten.

Nielsen’s annual marketing report, set for release later this month, says ad budgets are likely to be under scrutiny in the second half of the year. At the IAB NewFronts, Ameneh Atai, General Manager of Audience Measurement at Nielsen, said 54% of marketers say they’re looking to reduce spending in 2025. Her response was a data-rich reminder to media buyers that they should not underestimate audio.

“If there is one thing that is certain is this sort of knee-jerk reaction during uncertain times always happen,” Atai said. “We’ve seen it before. But what we know is that companies who lean into the fundamentals, the ones who lean into the details that matter, those are the one that emerge stronger.”

Nielsen’s survey finds that some ad verticals are under greater pressure to trim marketing expenses, especially those at greater risk to tariffs. Atai said 70% of technology marketers and 40% of retail marketers are looking to cut their budgets. “Both are looking to invest heavily into performance versus branding,” she explained.

At the same time, Atai said automotive and pharmaceutical brands are “holding tight” to their branding initiatives. “It is so imperative for automotive specifically to continue doing that brand-building effort to fill the pipeline of customers that can deliver short- and long-term ROI,” she said.

Atai told advertisers that while some may be considering cuts, Nielsen data shows 50% of brands don’t invest enough in media to achieve their maximum return on investment. And some movement comes at a risk. “Shifting budgets from high-reach channels to digital channels can also have a devastating impact on brand equity and long-term ROI,” she cautioned.

Audio Holds Its Own

While some marketers are shifting budgets toward perceived high-performance channels like CTV, social media and influencer marketing, Atai cautioned that perception often doesn’t match performance. Nielsen data shows that radio and podcasting deliver ROI on par with — and sometimes exceeding — flashier digital platforms. “Radio and podcasting have similar ROIs to social and video, respectively,” she said, pushing back against assumptions that traditional formats are less effective.

Amid news that half of marketers plan to cut budgets, Atai’s advice was clear: optimize, don’t overreact. That starts by understanding the nuance in audience behavior — and that’s where audio often stands out. She highlighted Black audiences, who spend more than 81 hours per week with media.

“When we ask them which is the channel that they find the advertising to be more relevant, and which is the channel they connect with — podcasting and radio race to the top,” Atai noted. She said that brands should even consider launching their own podcasts as a way to create more authentic and unscripted outreach to consumers.

For Black men in particular, Nielsen says both radio and connected TV reach 27.4 million — yet radio provides a more personal, empowering connection. “Any channel that allows them to take the mic, take control, becomes a proxy for community and allows this group to feel heard and seen,” Atai said.

The message wasn’t to abandon newer platforms, but rather to ground decisions in reliable, cross-platform data — and not neglect high-ROI formats like audio. “I’m not saying shift all your budget to radio,” Atai said. “What I’m saying is nuance in audience matters.”

Agility Amid Industry Disruption

At Wednesday’s NewFronts, IAB CEO David Cohen urged the digital and advertising industry to embrace change, lean into data, and remain open to new ideas, even in the face of rising uncertainty.

“We’re at a moment of extraordinary complexity,” Cohen said. “Uncertainty has become a feature, not a bug.”

Cohen’s call to action for advertisers focused on three key principles: stay data-driven, remain flexible, and keep consumers at the center. While these may seem obvious, he said, they’re too often forgotten during turbulent times — when companies retreat into silos or resist change.

“The real danger is not always your competition,” Cohen warned. “It’s contraction. It’s consolidation. It’s fragmentation. It’s a race to build higher walls when we should be focused on opening doors.”

Cohen championed interoperability, transparency and collaboration as essential for the future, adding that openness is not just a philosophy but a competitive edge in today’s fractured media environment. “We cannot afford to silo ourselves — not as companies, nor as an industry. If we want innovation, we have to stay open,” he said.

Throughout the week, Cohen noted NewFronts presenters have showcased new approaches to ad-supported models, first-party data, audience building, AI-generated storytelling, and cross-platform measurement — all signs of a rapidly evolving marketplace that rewards bold thinking and adaptability.

Cohen urged the ad community to explore the unfamiliar and embrace the unexpected. “Change is not a liability,” he said. “It’s our greatest advantage.”