"Automotive and retail are leading a digital ad spending retreat due to tariffs, according to a new eMarketer report. The researcher downgraded its full-year digital ad spending forecast for the U.S. by two percentage points, foreseeing 9.5% growth year over year to $338.27 billion. The auto sector is experiencing the most severe impact from the Trump administration's trade policy, which has included steep levies on imported parts and vehicles."
"The extent of tariffs' impact on U.S. advertising has been hard to pin down, in part due to the on-again, off-again implementation of levies on global trading partners. EMarketer's latest report provides a clearer view into which businesses are getting hit the hardest, with particularly bleak outlooks for automotive and retail. The report also identifies a larger push into performance marketing channels that can be easier to tie to business results but do little to build long-term brand affinity."
Tariffs have prompted a retreat in digital ad spending and a downgrade to U.S. full-year forecasts to 9.5% growth and $338.27 billion. Automotive faces the sharpest impact from tariffs on imported parts and vehicles, with digital ad spending projected to grow only 2.2% in 2025 versus prior expectations above 11%. Retail digital ad spending is forecast to rise 7.4% to $92.64 billion. Auto demand cooled sharply in the second half, driving brands toward measurable performance marketing channels that better tie to business results but do little to build long-term brand affinity. Some categories remain insulated.
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