Tariffs Soured Ad Market, But Q1 Buys Remained Strong
New Street Research in a note published Tuesday, revised revenue and advertising models downward. The analyst firm expects forecasts for U.S. and global ecommerce -- as well as for digital advertising, excluding China -- to fall. U.S. ecommerce growth for 2025 is now projected at 4.5% -- down from 7.5% -- and globally, excluding China, dropping to 6.5% from 9%. The firm also lowered its estimate for digital advertising growth. U.S. growth is expected to fall to 5.9%, down from 11.3%. Globally, excluding China, is expected to drop to 6.8%, New Street analysts wrote in the report.