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Potential reductions in US social ad spending, per our ad forecast鈥攖ied to broader trade tensions and reduced Chinese advertiser activity鈥攃ould hurt platforms that rely heavily on domestic spend. Pinterest鈥檚 international momentum provides a helpful counterbalance.

Tariffs drive ad pullbacks: Temu and Shein reduce US ad spending ahead of policy shift, signaling fallout across ecommerce and social platforms.

As China鈥檚 retail media advertising market begins to mature, off-site channels鈥攊ncluding WeChat and Douyin, TikTok's sister app in China鈥攚ill increasingly drive growth.

Meta under fire on multiple fronts: Teen-targeting claims, a high-stakes FTC trial, and Chinese advertiser pullback could reshape the company鈥檚 ad model.

Tariffs and related market turmoil could also threaten brand partnerships and drive US social network ad spending growth down 10% this year, crafting a storm of uncertainty. Short-form benefits: Longer-form video content can be more expensive to produce, requiring more resources and often needing multiple episodes to gain user attention.

Looking forward: While Q1 was successful for the social media giant, the ongoing US-China tariff war is expected to hit Meta hard, and its impact will likely be more noteworthy in Q2. Major Chinese advertisers including Temu and Shein contribute a substantial portion of ad spending on Meta platforms, accounting for 11% of ad spending in 2024 across Meta apps, amounting to billions of dollars.

If ad dollars shrink, Meta and others may need to ditch risky side projects and focus on scalable, affordable services to survive the slowdown

President Donald Trump鈥檚 shifting stance on tariffs has created a volatile environment for both consumers and retailers. With some Chinese goods facing tariffs as high as 245% and a blanket 10% on most imports, the market is seeing rapid shifts in consumer behavior, supply chains, and strategic planning.

Ad spending could become more reactive. With CFOs demanding agility, marketers will prioritize performance channels and pause bigger brand investments. Campaigns focused on demand generation, ROI, and flexibility may take precedence over splashy, long-term initiatives.

Retail media networks (RMNs) will attract an extra $2.29 billion in ad spending in 2025. This 鈥渢hird wave鈥� of digital advertising arrived a little later in the core Western European countries than in markets like the US and China, but its ascent has been rapid鈥攁nd will continue to be.

Trump has also indicated that he could lower US tariffs on China to secure support for a sale, stating that 鈥渋n order to get 颁丑颈苍补鈥� to agree, 鈥渕aybe I鈥檇 give them a reduction in tariffs.鈥�. Behind the scenes: While efforts to save the app are intensifying鈥攅specially in light of two-thirds of US adults opposing a ban, per Pew Research鈥攃onfidence in a deal is falling.

Apple was hit the hardest due to its manufacturing plants in China, India, and Vietnam: Its shares plunged 9.2% in the day after the announcement. Amazon and Meta followed close behind, each with 9% declines, while Nvidia鈥檚 shares fell 7.8%. Alphabet and Tesla saw more modest losses of 3.9% and 5.5%, respectively.

As the major economies of Western Europe and Latin America grow their B2B ad spending more quickly, China鈥檚 share of the worldwide total will decline. Click here to view our full forecasts for US B2B digital ad spending and China B2B digital ad spending. Outside of the US and China, the UK is the largest B2B digital advertising market.

The UK is still playing catch up with China and the US. At 拢7.3 billion ($9.1 billion), UK social commerce sales will account for around 4.1% of UK ecommerce sales in 2024. In the US, social commerce will have a 6.0% share of total retail ecommerce in 2024, while in China, it will have a 29.3% share.