IAB Slashes US Ad Spend Growth Forecast to 5.7% Amid Tariff Concerns
The Interactive Advertising Bureau (IAB) has revised its full-year US advertising spend forecast downwards to 5.7% growth. This follows concerns from advertisers about tariff news and macroeconomic pressures, as reported in their 2025 Outlook Study September Update.
The study, conducted between July 29 and August 28, surveyed over 200 buyers at brands and agencies. It found that 91% of buyers are worried about how tariffs will affect media spending, particularly in sectors reliant on imported products and parts. Major companies like Apple, Nike, Adidas, General Motors, Ford, and Stellantis have already reported significant tariff-related expenses. These financial pressures have led to widespread price increases across various sectors, including automotive, retail, and electronics.
Macroeconomic headwinds were identified as the top challenge for media investments by 41% of buyers, followed by changing consumer habits at 40%. While first-half spending held steady at 7.0% growth, second-half projections dropped to 5.0%, driving the lower annual outlook. IAB CEO David Cohen described the current environment as one of significant uncertainty, with marketers focusing on maintaining flexibility while driving short-term performance.
The IAB's revised forecast reflects the growing concern among advertisers about tariff news and macroeconomic pressures. As major companies continue to report tariff-related expenses and prices rise across various sectors, advertisers are adjusting their spending expectations for the remainder of 2025.
