Due to “dampened” consumer confidence and “stagnating” sales for TV and radio broadcasters, the U.S. ad market is expected to grow at a slower pace in 2025 than previously estimated. That is according to a revised annual forecast from Magna, the ad-focused media intelligence unit that is part of IPG.
The updated forecast projects the ad market will grow 4.3% in 2025 — down from the 4.9% Magna initially projected in December. Now, the revised estimate is for the U.S. ad market to bring in $397 billion this year, compared to $380 in 2024.
Magna’s downgrade is based on several factors, including the potential for trade wars stemming from President Donald Trump’s tariffs.