The WARC Podcast
Trump’s tariffs set to slash ad spend by $20 billion
Apr 8, 2025
James McDonald, Director of Data, Intelligence, and Forecasting at WARC, shares insightful analysis on the future of advertising amidst economic upheaval. He discusses how tariffs are projected to slash ad spending by $20 billion and dives into the impact of rising interest rates on tech advertising budgets. The evolving landscape of retail media, especially TikTok's role, is explored, along with the contrasting challenges facing the US and Chinese ad markets. Brands are reminded to adapt strategies to navigate this volatile environment.
20:17
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The global advertising market is projected to significantly slow down from 11% growth last year to around 5% next year due to tariff-induced economic uncertainties.
- Different sectors are experiencing varied impacts from the economic climate, with automotive budgets declining while the tech sector continues to see moderated advertising growth opportunities.
Deep dives
Declining Growth in the Global Ad Market
The global advertising market is experiencing a slowdown, with growth projections significantly reduced due to economic uncertainties. Current forecasts indicate a decline in growth from an impressive 11% last year to approximately 7.5% in the second quarter, with expectations of easing to around 5% next year. This slowdown is primarily driven by hesitancy among media buyers to commit ad budgets, largely influenced by the volatility arising from tariffs imposed during ongoing trade wars. The automotive, pharmaceutical, and consumer packaged goods sectors are particularly affected, as these industries face direct implications from the tariff situation.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
