"But a lot has changed for media agencies (and businesses worldwide) since then. President Donald Trump's tariffs have already affected client spending, and there is lingering uncertainty among agency executives about how tariffs will continue to impact budgets. Advertisers like Kimberly-Clark have begun to tighten their belts. The personal care company recently said that it had cut its overall marketing spend 10.8% compared with last year's second quarter."
"IPG's Magna Global, which issues quarterly ad-spend forecasts, said in June that it had adjusted its 2025 growth forecast downward by 1.2 percentage points due to less optimistic economic forecasts and reduced business confidence since December 2024. It now projects global advertising revenues for media owners to reach $979 billion in 2025, up only 4.9% in comparison with 2024. Likewise, in June, WPP Media revised its global ad revenue growth rate downward to 6.0% from a"
Tariff-driven uncertainty and corporate belt-tightening have reduced advertising budgets, prompting advertisers such as Kimberly-Clark to cut marketing spend 10.8% year-over-year in Q2. Major forecasting firms lowered 2025 ad-growth projections: IPG's Magna Global trimmed its forecast by 1.2 percentage points and now forecasts $979 billion in global ad revenues (up 4.9%), while WPP Media cut its outlook to 6.0% and expects $1.08 trillion. Despite lower ad spend, AI capabilities continue to advance, with agentic AI drawing agency and client interest even as its practical effects on workflows remain unclear.
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