U.S. Advertising Forecast Cut Amid “Uncertain Times” in Global Economy

by

As a gamer, I’m bracing myself for some challenging times ahead in the gaming advertising world. The US economy seems to be heading towards unpredictable waters, with potential tariffs, dwindling tourism, and other factors all pointing towards a slowdown in the domestic ad market by 2025, as suggested by Magna’s spring 2025 forecast.

A media analysis company predicts that traditional media owners who focus on cyclical ads, such as political advertising, will experience a 1% drop in ad revenues compared to the previous year. This forecast includes a 5.9% decrease in linear TV and a 3.7% decrease in local TV. However, it’s important to note that this is partially balanced by a significant 14.3% increase in streaming TV, as this market continues to mature.

In a fluctuating situation, conventional media proprietors might find themselves facing increased exposure, according to MAGNA’s observations. This is because advertisers are progressively directing their investments towards channels with a lower funnel focus and platforms capable of meeting immediate Key Performance Indicators (KPIs).

In summary, while earlier predictions pointed towards a 4.9% increase in ad revenues across all media platforms, it’s now expected to grow by only 4.3%. Interestingly, this growth is primarily driven by sectors like social media and search, as opposed to other forms of media.

2024 saw U.S. advertising revenues soar to an impressive $380 billion, marking a 12.4% growth (an 9.9% rise if we exclude cyclical expenditures).

2025 has begun facing a series of challenges, including plummeting stock market prices, bird flu epidemics leading to scarcity of eggs, potential trade disputes disrupting supply chains, and more complications on the horizon.

2024 saw an unprecedented surge in advertising expenditure due to a robust economy and constant advancements in the media/advertising sector, according to Vincent Létang, MAGNA’s global market intelligence executive VP. He further added that innovation will persist in 2025, and the economic foundations largely remain solid. Nevertheless, confidence significantly impacts marketing and advertising investments. A recent dip in confidence has affected the ad market, causing a downward revision of the 2025 growth forecast by the U.S. Even so, overall ad spend is projected to expand at a mid-single digit rate. Digital media ad sales will continue to exhibit high-single-digit growth, while traditional media channels might struggle with stagnating ad revenues this year.

Read More

2025-03-26 13:24