Analyst Brian Wieser from Madison and Wall lowered his US advertising revenue growth forecast for 2025 to 3.6%, down from a previous estimate of 4.5%.
Wieser attributes this revision to declining productivity caused by disruptions in international trade, rising inflation, and broader economic uncertainty driven by new tariffs.
Tariffs, especially on imports from Canada, Mexico, and potentially Europe, are stating to impact ad budgets, particularly in the automotive and pharmaceutical industries.
- Automakers alone represent between 7% and 13% of global revenue for major ad companies.
- Pharmaceutical industry faces potential risks from tariffs targeting imports from Germany, Ireland, and Switzerland.
Assessment: @Aron slight revision down due to the uncertainty but still positive for 2025.
Since the economy still expected to grow between 1-2% (but lower than previous expectations), I think is accurate to not expect a full on decline in advertising but still a slowdown on its growth rate