Analysts said Trump’s tariffs could slow ad growth for Meta and Google
- Analysts said Trump’s tariffs on China (including suspension de mini minimis rule) and those imposed on Canada and Mexico may slow advertising growth for Meta and Google.
- Youssef Squali, managing director of Truist Financial said the tariff turmoil “absolutely impact everybody, including the large ad platforms.”
- Squali pointed out that investors believe Meta Platforms may be well-positioned to absorb the blow given its scale and grip on advertisers, as evidenced by its own price hikes.
- Arun Kumar of AlixPartners said the pandemic led to a 20% decline in overall ad spending and that Trump’s tariffs would likely power a 5% to 15% drop.
- Kumar expects the tariffs to cause car makers to shift ad spend from brand marketing in favor of digital performance campaigns.