[eMarketer] Economic uncertainty comes for the advertising industry

The economic uncertainty that’s dominated news cycles over the last few months is hitting the advertising industry. Tech giants, ad agencies, and brands are all preparing for an industrywide downturn—but how severe it will be is unclear.

The economy’s turn has only made the rocky relationship between Big Tech and advertisers worse.

Big Tech’s advertising outlook was already reeling from widespread privacy changes like Apple’s AppTrackingTransparency policy. Meta said the changes could cost it as much as $10 billion in 2022, and its failure to create a reliable replacement has caused advertisers to flee the platform.

In May, Snap said it would miss its Q2 revenue goals, bringing down the stocks of other ad-reliant social media giants. What followed was a domino effect of layoffs, hiring freezes, and abandonment of new projects across the industry.

Consumer spending figures will be a crucial signal for advertisers looking to adjust their spending.

According to eMarketer, if advertising’s rocky outlook continues, ad channels that already had issues will be hit hardest by cuts as marketers look to put their tighter wallets to use on more reliable sources.

Read the full eMarketer article here

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