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Brands making the calculation that political favor is worth more than proven ad dollar ROI鈥擷鈥檚 ad revenue struggles go back to when it was still Twitter鈥攕hould remain cautious about advertising on the platform and understand that this decision might do more harm than good.

But they also indicate that advertisers investing heavily in SVOD and ad-supported video-on-demand platforms like Netflix and Hulu might need to rethink their ad spend. Our take: The shift represents the need to restructure how advertisers reach their target audiences.

Hubspot鈥檚 head of brand paid media, Jonathon McKenzie, said that OOH accounts for about 40% of the company鈥檚 ad spend in North America. 鈥淥utdoor is really a barometer for where culture is at,鈥� said Pat LaCroix, executive vice president of media and growth at MissionOne Media. Billboards build brand legitimacy. OOH has faced challenges due to difficulty with measurement.

Much of this ad spend comes from Chinese ecommerce brands marketing directly to US consumers, especially in categories like apparel, home goods, and electronics. Higher import costs may reduce these brands' US ambitions鈥攁nd their reliance on Meta鈥檚 performance-driven ad tools. Our take: Legal risks and shifting economics could weaken Meta鈥檚 influence.

It also bodes well for the company鈥檚 marketing and advertising growth through new device and market segments. The Android Show will highlight the expansion from smartphones to wearables, cars, and TVs and as a conduit for Gemini鈥檚 AI features.

The continuing problem of made-for-advertising (MFA) sites and a number of reports from industry activist group Adalytics highlighting brand safety failures has put a spotlight on how DSPs are responding. 11% of worldwide website ad spend went to MFA sites, per a December 2024 Pixalate study.

Meta鈥檚 decision could hurt overall ad spending and how advertisers approach marketing on its platforms. While it might not have a significant impact on Meta鈥檚 massive ad revenues and enormous reach, it could make Snapchat look appealing in comparison and draw more attention to the platform, whose ad revenues are lagging behind competitors.

Why it鈥檚 worth watching: The ad tech landscape is dominated by Google, Meta, and Amazon, which are on track to control over half of global ad spend by 2028, per Campaign. With AT&T and Verizon exiting ad tech, T-Mobile鈥檚 investment spree signals a gamble on mobile-driven, first-party-data advertising.

RMN leaders that already command the majority of ad spending share will further solidify their leads as long-tail RMNs determine next steps on measurement. Friction will create opportunities for third-party technology platforms with proprietary measurement solutions. RMN proliferation is putting pressure on the status quo.

The country represented about 11% of Meta鈥檚 ad spending, and top advertiser Temu has already started pulling back spending. MoffettNathanson forecast a $7 billion advertising income loss for Meta this year due to tariffs, per CNBC. That potential hit means Meta needs to cut losses elsewhere. Our take: Reality Labs has been a drain on Meta鈥檚 finances for years.

Higher expenses and weakened demand could also curb seller ad spending, limiting Etsy鈥檚 revenue opportunities.

Talent hunt: As brands focus on retail media network ad spending that provides better omnichannel customer targeting, tracking, and improved performance measurement and campaign attribution, retailers need to fill their skills gaps by hiring talent in ad tech, martech, and growth marketing, according to Dan Goldsmith, managing director at Three Pillars Recruiting.

Advertisers are being forced to think beyond return on ad spend (ROAS). Because most retail media advertisers began by buying search ads, many evaluate spending by looking at ROAS. But as retail media diversifies beyond lower-funnel activations, brands will have to get comfortable incorporating awareness metrics such as brand fit and reach into their measurement strategies.

Combatting slower ad growth may be a core focus in upcoming quarters to compete against players like Google and Amazon. Given its tech dominance and strong market position, Apple will likely continue to see revenue increases, though potentially at a slower pace鈥攂ut enhancing its Services sector and ad offerings is key to bolster growth.

TikTok鈥檚 top brands pulled back spending after ban signing: Ad spend growth slowed in the month after the ban was signed, and major retailers like Target reduced spend.

Beyond social media giants like TikTok and Meta, brands can diversify their ad spend by investing in sports podcasts and consider partnerships with popular sports personalities鈥攁 strategy that has already proven successful.

The end-of-season surges suggest that Gen Zers are most engaged with apparel content in the lead-up to the following season鈥攁n important trend that could help marketers time their ad spend for the highest effectiveness. Online gaming was another consistent category for Gen Z, maintaining steady growth from June (19,043) to December (19,988).

Banning advertising tax deductions for pharma could generate $1.5 billion to $1.7 billion in federal tax revenues, according to Campaign for Sustainable Rx Pricing鈥檚 ad spending analysis of 10 leading pharma companies. Why it matters: A total ban on direct-to-consumer drug advertising would face First Amendment free speech challenges from the pharma, advertising, and media industries.

US CPG Industry Ad Spending 2024(蘑菇AV subscription required). Methodology: Data is from the Placer.ai report titled "Quarterly Retail Review: Q4 2024." Placer.ai analyzes 1.5+ billion monthly visitors across 20 million devices, 13+ million venues, thousands of segments, and 500+ mobile apps. Placer.ai is a location analytics and foot traffic data company.

The increase is fueled by political ad spending, which leans toward traditional formats like TV and print media, in a unique presidential election year. Read the full report, US Retail Industry Ad Spending 2024.

China鈥檚 ecommerce channel ad spending tells the story of its role in worldwide retail media advertising. The status of off-site RMNs and related demand-side platforms (DSPs) in China remains unclear, but we believe their role in retail media ad spending is relatively negligible so far.

There鈥檚 an early mover advantage in generative AI (genAI) for advertising and media strategy. GenAI is reshaping advertising and media planning landscapes. The challenge is to overcome implementation hurdles.