The latest IAB Outlook Study confirms what we’re seeing on the ground: brands are pulling back.

Ad spend growth for 2025 just dropped from 7.3% to 5.7%. That’s not a small dip, it’s a sign that economic pressure is real.

Tariffs are squeezing margins. Auto, retail, and consumer electronics are taking the biggest hit. When margins tighten, ad budgets are the first to get cut.

Performance is the only priority. Sixty-four percent of brands say customer acquisition comes first. Forty-two percent are moving spend to lower-funnel tactics. If you can’t show ROI, you’re out.

The channel mix is shifting fast. Social media (+14.3%) and CTV (+11.4%) are growing. Linear TV is down 14.4% and dropping faster. Money is moving to channels that prove outcomes in real time.

None of this is a surprise.

When budgets shrink, brands cut what they can’t measure and double down where they see revenue.

That’s why we built Acceler8 around performance-first strategies from day one.

What brands should do now:

1. Review your channel mix. If you can’t prove results, shift budget to channels with clear attribution.

2. Prioritize repeat purchases. CAC is climbing. Growth comes faster from getting more value out of existing customers.

3. Stay flexible. The strongest brands pivot quickly instead of getting locked into rigid commitments.

The economy is tough, but it’s exposing the difference between brands with real growth strategies and those just spending money.

How are tariffs and economic pressure changing your media mix?
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