Magna Revises 2025 U.S. Ad Market Growth Forecast to 4.3%

The update cites a temporary decline in consumer confidence, with digital media driving growth while traditional media faces challenges.

Magna has lowered its 2025 U.S. ad market growth projection from 4.9% to 4.3%, attributing the adjustment to economic uncertainty and reduced consumer confidence.
Digital media ad sales are expected to grow by 9.6% to $293 billion, supported by sectors like search, retail media, and ad-supported streaming.
Traditional media channels, including linear TV and publishing, are forecast to decline by 1%, with digital formats unable to fully offset losses in legacy platforms.
Ad-supported streaming is projected to grow by 14%, as 75% of streaming hours are now ad-supported, reflecting increased consumer adoption.
Despite the dip in confidence, economic fundamentals such as CPI inflation, job market stability, and corporate profits remain strong, influencing sector-specific resilience.