Budget-Conscious Consumer Choices: How Economic Changes Are Reshaping Spending

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With household expenses expected to rise in 2025, US consumers are proactively tightening their budgets and making more calculated spending choices. Here’s what you need to know about how consumers are changing their spending habits.

 

1. Consumer Sentiment

Consumers are facing an economic landscape where caution will be a key factor in the planned spending. A recent poll from YouGov shows nearly half of US Americans believe the economy is getting worse (48%) and inflation will rise soon (47%).

However, current sentiment is not just about cutting back, but about needing to be adaptable. Despite economic pessimism, consumers feel slightly more in control of their personal finances. A third of US Americans expect it to improve in a year versus 28% who expect their finances to worsen. Consumers remain hopeful that having direct input over their own personal financial decisions will keep them stable in the long run.

 

2. Where Consumers Feel the Pinch

This sense of cautious optimism is shaping how consumers plan their spending, as a majority of US Americans (76%) are currently more cautious than carefree regarding their spending. As they navigate economic uncertainty, they’re carefully adjusting their budgets by deciding where to cut back and where to allocate their money effectively. Nearly half of US Americans (44%) expect the costs of food and consumer goods to worsen. More specifically, consumers are worried about price hikes when shopping for essentials like groceries (55%) and household goods (34%), according to a study from Numerator. The study also shared consumers’ concerns about higher costs for electronics (29%) and automobiles (28%).

These concerns push consumers to increase their efforts to adapt their current spending habits.  Most consumers (76%) already plan to adjust their purchasing habits in response to the changes, with 41% planning to rely on sales and coupons. This means many consumers will try to prioritize essential purchases while finding creative ways to save, either through discounts, bulk-buying, or delaying non-essential purchases.

 

3. The Shift to Smarter Entertainment Spending

This more intentional approach to spending extends beyond everyday necessities. With constricting discretionary income, cost-conscious viewers will also reevaluate their budgets for streaming TV. Preliminary findings from our latest Big Shift report show that half of CTV viewers have cancelled a streaming service in the last year due to economic concerns. Instead of eliminating streaming altogether, however, many viewers are switching to ad-supported streaming services or bundling plans to maximize entertainment options without overspending. 

According to a report from Antenna, ad-supported tiers of streaming TV services made up 57% of new subscriptions in 2024. Though this is unsurprising given the growing demand for free, ad-supported streaming. The latest FAST report from Amagi states 72% of US households watch free ad-supported streaming, with half engaging with this type of content multiple times a week. According to Hub Research, bundled streaming services also appeal to cost-conscious consumers as 37% of streamers are less likely to cancel those than standalone subscriptions. 

 

4. Tapping into Advertising Efficiencies

As consumers become more intentional with their spending, advertisers must be more efficient with theirs. A survey of US media agency professionals by Pixability showed 58% of them increased their CTV spend in 2024, and eMarketer projects CTV ad spend to grow by 16.8% this year. In our report. The Efficiency Curve, we found that advertisers reallocating just 6.3% of impressions to CTV can significantly improve campaign performance. By adopting a CTV-first strategy, brands can achieve a more balanced, impactful mix of reach and frequency across audiences.

Contact us to learn more about how we can help unlock the Efficiency Curve for your TV ad spend.