MAGNA reduces its 2025 ad market growth forecast from +4.9% in December 2024 to +4.3%.
MAGNA anticipates that the lack of visibility and risk of a trade war may cause marketing and advertising budgets to face freezes or cuts in industries that are most vulnerable to global trade, supply chain disruptions, and consumer confidence issues.
- MAGNA expects negative GDP growth for the first quarter. The uncertainty will also lead to cautiousness in investment and marketing spending decisions for the months ahead.
- CPG (food, drinks, personal care), quick-service restaurants, and autos are tied to global supply chains and prices, while also facing consumer scrutiny. They represent a sizable share of ad spend.
- In contrast, other large industries like Pharma, Retail, Tech/Telecom, Entertainment, Finance, and Insurance are large, growing, and less sensitive to global costs or economic cycles.
- Endemic and organic drivers (e.g. retail media, ad-supported streaming) have boosted ad spend beyond economic growth and will keep advertising formats attractive, encouraging steady or growing brand investment.
