Advertising Markets

IAB cut its 2025 U.S. advertising spend growth forecast to 5.7% from 7.3%, expects social media ad spend to grow 14.3%, up from 11.9%

  • In its September 25 update, IAB cut its 2025 U.S. advertising spend growth forecast to 5.7% from 7.3%, citing a decline in sentiment among media buyers.

  • IAB said more marketers (42%) are focusing on performance or lower-funnel campaigns compared to February (35%).

  • It raised its forecast for social media ad spend growth rate to 14.3%, up from 11.9% in January.

    “In our January report, we saw real concerns about the economy, and a shift toward performance-driven media. Now that shift is accelerating. If consumers are pulling back, that means every single dollar of ad spend has to earn a return,” said Chris Bruderle, vice president, industry insights and content strategy at IAB.