The U.S. ad market is projected to grow by 7% in 2025, reaching $379 billion in revenue in 2024, excluding political advertising. This forecast comes amidst uncertainty caused by new tariffs announced by President Donald Trump, which include a minimum 10% on all imports and steeper duties on countries like China and Vietnam. Advertisers are now seeking more flexible advertising terms to quickly adjust budgets in response to these economic changes. The demand for flexibility is evident in recent discussions between media companies and advertisers. Programmatic ad buying, often utilizing AI tools, has become a significant part of ad spending. The potential impact of tariffs extends beyond direct costs, influencing overall ad market dynamics. GroupM’s global president of business intelligence, Kate Scott-Dawkins, noted that rising inflation, layoffs, and unemployment, combined with tariffs, might lead to a reduction in their growth expectations for the year. Additionally, 25% tariffs on cars and some auto parts not made in the U.S. have sparked frequent conversations with chief marketing officers at automakers. Despite the economic uncertainty, some media executives suggest that maintaining ad spending during tough times can enhance long-term brand awareness and business resilience.
Source: www.cnbc.com

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