Advertisers are tightening budgets as economic pressures mount, leading the Interactive Advertising Bureau (IAB) to trim its 2025 U.S. ad spend growth forecast to 5.7%, down from the 7.3% projected earlier this year.
The downgrade comes after ad buyers signaled they plan to spend less in the back half of the year than previously expected, with second-half growth now projected at 5.0% instead of 7.0%. The updated outlook is based on a September survey of more than 200 brand and agency buyers.