Advertisers are scrutinizing their budgets. With inflation driving up operating costs and a potential recession looming, marketing is getting deprioritized. Our current outlook: Ad spending won’t bottom out. Our latest forecast predicts $278.59 billion in US digital ad spending next year, down from the $284.10 billion expected in our previous forecast—a setback of $5.51 billion.
Budget cuts will affect some channels more than others.
Advertisers that can afford to keep spending, will. These advertisers could gain market share when other brands pull back or go dark. But the longer the recession, the harder it becomes to maintain this strategy. Our latest forecast has digital ad spending rebounding by 2025.