American made products will be key to saving money for consumers beginning in 2025! Philip Jay LeNoble, Ph.D.

Commentary

TV Ads, Tariffs, Payment Plans: Disengagement or Pricey Buys?

• by Wayne Friedman , Staff Writer, December 4, 2024

Future TV advertisers -- under the Trump administration -- will need to have some new advertising copy when it comes to the all-important holiday shopping season.

Worried about 100% tariffs leading to high prices on products coming from China and elsewhere? Some new ad copy might be a good idea, to think ahead: “New holiday shopping deadline -- for the next four years -- coming January 20th!”

Hey, don’t worry. Just keep your 2017 car running just another 40,000 miles or so. That’s right -- no new Tesla for you!

No doubt this could warm the heart of Tesla founder Elon Musk and his goal for U.S. consumer, business, and governmental efficiency.

Well, perhaps it's not all bad. President-elect Donald Trump might just pick and choose those industries in certain countries that he favors (or is against) or where he or his friends have no vested interest. Or not.

A tariff is a tax that will be borne by consumers on imported goods, according to a wide range of economists. So the price for a mobile phone will almost assuredly rise, for example.

Think that will make you now buy a totally U.S.-manufactured mobile phone -- and not one from Apple, Samsung or Google, where devices are entirely or through parts produced overseas? Maybe -- if you can find one. And if so, tell us about that purchase -- in 2029.

Executives at retailer Best Buy now say tariffs could force the retailer to raise prices -- especially consumer electronics, which are virtually all imported. Best Buy executives say around 60% of all the products it sells comes from China.

How does that affect Best Buy? Possibly less TV marketing -- or at least more strategic marketing that goes to other media.

Other categories -- automotive, consumer mobile/broadband communications companies, and quick-service restaurants -- might also experience some issues.

If consumers drastically cut out some luxury products and services they do not need immediately due to high prices, what then?

Will brands keep advertising -- at least from an awareness level?

During recessionary times, media executives believe this type of marketing at a minimum needs to continue.

Perhaps engagement-oriented TV campaigns will tout more monthly payments -- with no interest attached.

Truly, under this administration, some new TV advertising copy might read: “Buy now. Pay later.”