IAB Slashes 2025 US Ad Spend Projection Amid Tariff Worries and Economic Headwinds
The Interactive Advertising Bureau (IAB) has revised its 2025 US ad spend projection due to tariff concerns and macroeconomic headwinds. These factors are expected to impact the advertising sector, particularly lower-margin businesses and those reliant on global supply chains. Ad buyers' top challenges include macroeconomic headwinds and changing consumer habits.
IAB has reduced its 2025 US ad spend projection to +5.7 percent, with the second half of the year expected to grow by +5 percent. This revision reflects the impact of tariff concerns and macroeconomic headwinds, which 91 percent of buyers are worried about. These factors are set to affect media spending, with auto, retail, and consumer electronics sectors being the hardest hit.
Linear TV is expected to decline by -14.4 percent, and other traditional media will decline more than twice as previously projected (-3.4 percent). Meanwhile, key digital channels are expected to post double-digit growth. Social Media is projected to grow by +14.3 percent, Retail Media by +13.2 percent, and Connected TV (CTV) by +11.4 percent.
The revised ad spend projection reflects the challenges the advertising sector faces in the second half of 2025. While traditional media faces decline, digital channels are expected to grow. Ad buyers and businesses must navigate tariff concerns and macroeconomic headwinds to adapt to these changes.
