How AI Moves Marketing Forward

"All of this is taking its toll on advertising. Last week, the Interactive Advertising Bureau revised its outlook on advertising spending for 2025, rolling the projected spend back 1.6 percentage points. Companies are now expected to spend just 5.7% more this year on advertising, down from the initial projection of 7.3% more. The main reason behind the revision is tariff concerns. More than nine in 10 media buyers have been concerned over the new import taxes and their impact on the industry, and many have been working to adjust strategies."

"With tariff impacts starting to roll through the supply chain, there is a lot of hesitance as to where the economy and consumer sentiment will go over the coming months," 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."

"The imperative of meeting business goals and making every advertising dollar count is shifting how brands will allocate their funds. IAB expects double-digit increases in media that people spend more time with today: social media (14.3%), retail media (13.2%) and CTV (11.4%). Likewise, IAB predicts legacy media will see steeper declines, especially linear TV, projected to see 14.4% less spending instead of the 12.7% projected at the beginning of the year."

A federal government shutdown over healthcare cuts began today. Consumer confidence is falling, with current financial situation measures posting a large month-over-month drop and more than two-thirds rating the U.S. economy as fair or poor. New tariffs are increasing costs for businesses by adding taxes to imported goods and components and forcing companies to adapt supply chains. The Interactive Advertising Bureau revised its 2025 advertising spending outlook, cutting projected growth to 5.7% from an earlier 7.3%. Tariff concerns prompted the revision, with more than nine in 10 media buyers expressing worry and adjusting strategies. Marketers are prioritizing flexibility and short-term performance, reallocating budgets toward social media, retail media, and CTV while reducing spend on legacy channels, particularly linear TV.

Read at Forbes