"Tariffs are cutting into digital advertising: The IAB has revised its 2025 U.S. ad spend outlook downward, trimming projected growth from 7.3% to 5.7%. The cut reflects rising concern over tariffs and broader economic headwinds, with second-half growth now forecast at just 5.0%. Marketers are reacting in real time: 91% of buyers say tariffs are affecting budget decisions, forcing brands to prioritize flexibility and short-term performance."
""The marketplace reacts poorly to uncertainty," IAB CEO David Cohen said in a statement. "Marketers are laser-focused on maintaining the utmost flexibility while driving short-term performance that delivers on their business goals." Beyond tariffs, buyers cite macroeconomic headwinds (41%) and changing consumer habits (40%) as their top two overall challenges for the rest of the year. Customer acquisition remains the top priority (64%), while the push for repeat purchases has grown by five points since January."
IAB cut its 2025 U.S. digital ad growth projection from 7.3% to 5.7%, with second-half growth now expected at 5.0%, citing tariffs and economic headwinds. Ninety-one percent of buyers report that tariffs influence budget decisions, and sectors reliant on imports—automotive, retail, consumer electronics—face particular pressure. Buyers also name macroeconomic headwinds (41%) and changing consumer habits (40%) as top challenges. Customer acquisition is the primary priority (64%), and repeat-purchase focus has increased. Digital channels like social, retail media and CTV remain on track for double-digit growth, while linear TV and other traditional channels decline.
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