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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.

As US-imposed trade tariffs begin to take effect, business decision-makers and consumers are grappling with how to prepare鈥攕ome more than others.

Amazon is on pace to generate $66.64 billion in global ad revenues this year鈥攗p 18.6% from 2024鈥攚ith a trajectory to cross $90 billion by 2027, per our forecast. While Q1 revenues slightly exceeded expectations, Amazon鈥檚 Q2 forecast suggests potential headwinds, particularly from tariffs that may squeeze smaller advertisers.

奥补测蹿补颈谤鈥檚 US sales rose 1.6% YoY in Q1: Despite growing macroeconomic headwinds and a frozen housing market, demand remained strong.

Turbulence in trade relations is changing how China鈥檚 ecommerce platforms do business in the US, with spillover effects on US retail and advertising.

In our first edition of the Global Digital Index, created in partnership with the RLC Global Forum, we explore retail and ecommerce in the Gulf States of the Middle East.

US adults spend over 32.3 hours monthly on the Spotify app, compared with 3.5 hours on Amazon Music and less than an hour on Apple Music, according to a January 2025 Comscore study.

It鈥檚 a big opportunity to break into: We forecast that US remittance outflows alone will equal $92.58 billion this year. User preferences: 50% of US remittance users said lower fees would incentivize them to switch providers, while 41% cited faster transfers. Offering crypto could improve SoFi鈥檚 position as a remittance provider by catering to those demands.

The news: Spirit Halloween canceled its annual kickoff event due to 鈥渋nternational disruptions and supply chain challenges,鈥� it said in a social media post. Our take: While the retailer did not directly cite tariffs, it is the latest warning sign that President Donald Trump鈥檚 鈥淟iberation Day鈥� duties could result in emptier shelves during key shopping seasons.

By 2027, a quarter of all digital shoppers will engage with AR shopping, per our forecast. And by 2028, 78% of social network users are projected to interact with its shopping features.

The news: US shopper interest in generative AI (genAI) assistants has spiked 223% between 2023 and 2025, per Chain Store Age. 69% of US consumers surveyed by CouponFollow have used AI assistants for shopping. Our take: Retail AI strategies must match their audiences. Those geared toward younger consumers should highlight AI use and innovation and even let AI guide purchases. For older consumers, focus on AI to inform, not take control.

The news: Skims, the shapewear brand founded by Kim Kardashian, is on an expansion tear as it nears $1 billion in annual sales, per Business of Fashion. The company plans to open 16 stores in the US this year, bringing its total domestic footprint to 22. Over the next nine months, Skims expects to establish itself in seven new markets鈥攊ncluding stores in Mexico, London, and Dubai. Our take: While stores are hugely important to Skims鈥� growth, the company has several advantages over the rest of the D2C field. Unlike most other D2C companies, Skims doesn鈥檛 need to rely on its stores as billboards given its high-profile founder, who is also a fixture of its ad campaigns. Its partnership with Nike will give it access to an even larger audience and smooth its entry into the athleisure category鈥攁ssuming production delays don鈥檛 get in the way. The launch will also considerably increase Skims鈥� retail presence without needing to invest in premium real estate.

Consumer sentiment: Sezzle鈥檚 rollout keenly taps into American鈥檚 souring expectations for the US economy. The Conference Board鈥檚 consumer confidence index slid 5.4 points in June to 93. Short-term economic expectations for income, business conditions, and the job market were also bleak鈥攚ith the score slipping 4.6 points to 69.

Kimberly-Clark, for example, expects tariffs to cost it an additional $300 million this year, despite the fact that the majority of its US products are sourced and manufactured domestically. That鈥檚 forcing them to walk a fine line: absorb those costs or pass them along to shoppers without losing volume.

The news: PayPal is launching storefront-style ads that allow users to buy products directly within display ads on publisher sites, using PayPal or Venmo without leaving the page. Debuting in the US with partners like Business Insider and Vox Media, the units will later expand to include carousels and listings. This move strengthens PayPal鈥檚 financial media network footprint after its 2023 Ads launch. Our take: As FMN spend is set to reach $1.78B by 2027, PayPal is embedding commerce where consumers already are. These shoppable ads address friction, drive impulse purchases, and position PayPal as a safeguard against rising AI-driven agentic commerce.

It鈥檚 using Wellspring, a mapping tool that improves delivery precision, along with AI-powered demand forecasting to optimize inventory. It鈥檚 also deploying agentic AI to enhance warehouse robotics to speed up fulfillment. Chipotle, in the midst of aggressive store expansion, has slashed hiring times by 75% with its AI-driven 鈥淎va Cado鈥� platform, per Fortune.

US Hispanics now control over $4 trillion in annual spending power鈥攅quivalent to the world鈥檚 5th largest GDP, according to UCLA and Latino GDP Project data. There are 65 million Latinos in the US market today, per the US treasury department. Projections showing Hispanics will account for 70% of homeownership growth through 2040, according to the Urban Institute.

US-UK trade deal eases barriers across key sectors: Our FAQ explains how the pact may benefit exporters and affect economic growth.

The insight: Younger consumers are opting out of human interaction when they shop. Our take: While younger consumers tend to adopt new behaviors faster, they鈥檙e also driving the direction of retail innovation. Retailers looking to stay competitive should prioritize the tech-driven, convenience-first features these shoppers now see as table stakes.

The projection: Nonalcoholic beer is poised to overtake ale as the world鈥檚 second-largest beer category by volume this year behind lager, per IWSR. While ale is an incredibly broad category鈥攅ncompassing everything from hazy IPAs to stouts and Belgian-style wheat beers鈥攊t's losing ground. Global ale volumes are expected to decline by 2% annually through 2029.

TSA data shows that the number of travelers passing through US airports over the past 90 days is down YoY鈥攖he first such decline since the peak of the COVID-19 pandemic, per the Financial Times. Spending data reinforces the trend.

When YouTube is used as part of a wider ecommerce strategy, it performs well. A future where YouTube Shopping is a core consideration might not be far away. Sources. Business of Apps. Channel 4. Comscore. Influencer Marketing Hub. International Olympic Committee. Ofcom. Podnews. Semafor. Spotify. Streamcharts. YouTube. YPulse.

The news: Activist investor Barington Capital is pushing for changes at Victoria鈥檚 Secret, just weeks after the retailer adopted a poison pill measure to thwart a potential takeover attempt by Australian investment firm BBRC International. Our take: The uncertain environment is proving to be too good an opportunity for activist investors to pass up. In Q1 alone, shareholders launched 40 campaigns in the US, accounting for more than half of global activity and a 43% increase YoY, according to a Barclays analysis.

The news: Consumers increasingly trust shopping suggestions from AI, even more than product suggestions from content creators, positioning the technology as a trusted and personalized guide rather than a back-end tool. 27% of US consumers trust AI shopping recommendations, per Walmart鈥檚 Retail Rewired Report, compared with 24% who trust suggestions from social media influencers. Our take: AI retail tools are most likely to succeed if they offer both speed and a sense of user control. Retailers should let users set spending caps and offer options to pause or customize recommendations to help AI agents feel more like a trusted assistant than a pushy salesperson.