Impact of Tariffs on US Social Ad Spending

Sector Broadly Positioned for Growth Despite Headwinds

Report by Jasmine Enberg, and Minda Smiley  | May 21, 2025

Impact of Tariffs on Digital Advertising

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Table of Contents
Executive Summary
Despite challenges, social ad spending will grow in 2025
Social media is more susceptible to big swings in spending than many other digital channels
Meta would be the biggest winner in a tariff-induced economic slowdown
Recommendations for advertisers
Sources
Media Gallery
About This Report
US social ad spend will grow YoY in 2025, even as platforms grapple with tariff-related budget cuts from industries that spend heavily on social channels, like CPG and retail.
Topics
Social Media Marketing
Total Media Ad Spending
US
Table of Contents
Executive Summary
Despite challenges, social ad spending will grow in 2025
Social media is more susceptible to big swings in spending than many other digital channels
Meta would be the biggest winner in a tariff-induced economic slowdown
Recommendations for advertisers
Sources
Media Gallery

A tariff-induced economic slowdown could knock off up to about $10 billion from our forecast for US social network ad spending in 2025. But even under “heavy tariffs,” we expect spending to rise YoY as brands seek the flexibility, scale, and measurable performance that large social platforms like Meta provide.

Key Question: How will tariffs affect social advertising?

Tariffs Could Reduce Projected US Social Ad Spending by Up to $10 Billion in 2025
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Key Stat: Tariffs could reduce our forecast for US social network ad spending by up to about $10 billion in 2025. But that’s still close to $1.5 billion more than what US advertisers spent on social ads in 2024.

This report can help you:

  • Develop media strategy and allocate budget for campaigns (agencies and brands)
  • Showcase opportunities to customers (media platforms)

In this report, we model three potential outcomes for US social network ad spending, based on the severity of tariffs, to show how ad spending could shift.

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Table of Contents

  1. Executive Summary
  2. Despite challenges, social ad spending will grow in 2025
  3. Social media is more susceptible to big swings in spending than many other digital channels
  1. Meta would be the biggest winner in a tariff-induced economic slowdown
  2. Recommendations for advertisers
  3. Sources
  1. Media Gallery

Charts in This Report

Tariffs Could Reduce Projected US Social Ad Spending by Up to $10 Billion in 2025Retail and CPG Reign in Social Ad Spend, but Could Tariffs Put Their Lead at Risk?
Temu and Shein Drastically Cut US Ad Spend in April While Ramping Up Ad Spend in EuropeUS Digital Ad Spending Will Grow by 8.0% in 2025 on the Current, Moderate Tariff Trajectory
Connected TV (CTV) Ad Spending Growth Would Be Hit Hardest by Tariffs, (billions and % change in US digital ad spending, by category and tariff forecast scenario, 2024-2025)

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authors

Jasmine Enberg, and Minda Smiley

Contributors

Rahul Chadha
Director, Report Editing
Vladimir de Leon
Chart Editor
Eleni Digalaki
Zach Goldner
Senior Forecasting Analyst
Vladimir Hanzlik
Executive Editor and SVP, Content
Penelope Lin
Director, Data Visualization
Naomi Rebuelta
Copy Editor
Paul Verna
VP, Content
Zia Daniell Wigder
Chief Content Officer