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American Focus > Blog > Entertainment > Ad-Spending Forecaster Magna Cuts Growth Outlook, Citing Consumer Confidence
Entertainment

Ad-Spending Forecaster Magna Cuts Growth Outlook, Citing Consumer Confidence

Last updated: March 26, 2025 6:22 am
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Ad-Spending Forecaster Magna Cuts Growth Outlook, Citing Consumer Confidence
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Advertising Industry Forecast Adjusted Amid Economic Uncertainty

One of the leading forecasters in the advertising industry, Magna, has revised its projections for ad spending in the United States due to a cloudy economic outlook and a decline in consumer confidence. Initially, Magna predicted a 4.9% growth in ad sales for 2025, but has now adjusted it to 4.3%, with total ad spending expected to reach $397 billion this year when factoring in cyclical events like the previous year’s election season.

Vincent Létang, the executive vice president of global market intelligence at MAGNA, expressed that while the economy is stable and there is ongoing innovation in media and advertising, a decrease in consumer confidence has impacted the dynamics of the ad market. Despite this, digital media ad sales are anticipated to continue experiencing high-single-digit growth, while traditional media channels may face stagnation in ad revenues.

The Trump administration’s consideration of imposing tariffs on various countries has contributed to a dampened stock market and a more cautious outlook on Wall Street for growth.

When accounting for cyclical spending in both 2024 and 2025, non-cyclical ad revenue growth for 2025 has been adjusted to 6.7%, down from the previous estimate of 7.3%.

The report from Magna comes just ahead of the media industry’s annual upfront sales season, where U.S. TV networks aim to sell the majority of their commercial inventory for upcoming programming cycles. Concerns about consumer confidence and purchasing decisions could impact advertisers’ willingness to invest in media well in advance of when their ads are set to run.

See also  Morgan Stanley Maintains Overweight on Ryan Specialty (RYAN), Citing Sector Strength

Magna’s projections include a 9.6% increase in ad revenue for digital media outlets, totaling $293 billion, and a potential 1% decrease in ad sales for traditional media owners, amounting to $103 billion. Cross-platform national TV sales are expected to remain steady at around $46 billion, with a boost in ad-supported streaming offsetting declines in linear viewing ad sales.

TAGGED:AdSpendingCitingConfidenceconsumercutsForecasterGrowthMagnaoutlook
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