Ä¢¹½AV

Temu and Shein’s strategy: The two Chinese retailers are fiercely competing while also trying to drive a lucrative holiday shopping season ahead of political changes that could significantly alter their US businesses. The incoming Trump administration has proposed increasing tariffs on Chinese imports by 10%.

As Latin America’s digital revolution marches on, advertisers and retailers must keep pace with how and where consumers are spending their time—and money—if they wish to maintain a competitive edge in today’s rapidly evolving business environment.

But China has major players in the space, and Mercado Libre is a challenger in Latin America. Most spending will take place in the US or China, but Latin America will see the fastest growth. The US will deliver nearly $60 billion in retail media ad spending in 2024, and China’s ecommerce channel ad spending will reach nearly $55 billion.

ByteDance’s non-China revenues grow 60%: TikTok’s ad and ecommerce prowess drive revenues despite regulatory headwinds in US and China.

The ad spending winter of 2022 and early 2023 was mild and short-lived, as we predicted. And after a solid H2 2023, things are looking up across the board for 2024.

Why it matters: The rising B2B ad spending underscores the shift toward more digital touchpoints in marketing. These figures highlight the expanding global emphasis on digital platforms to reach B2B customers, particularly in emerging markets.

Omnicom, parent of BBDO and DDB Worldwide, benefited from ad spending for the Paris Olympics and the US presidential election. It also highlighted winning Amazon’s media account in the Americas.

Latin America is taking its cues from China, not the US. Increased investments from Chinese companies into the regional economy have diminished the US’s historically influential role as an innovation leader. This paradigm shift has given China a stronger foothold in swaying people’s digital behaviors in its favor.

Under Ä¢¹½AV’s moderate tariff forecast—the most likely outcome following May’s 90-day pause in the US-China trade war—US CTV ad spending will grow 7.1% to $30.69 billion, far below the 16.8% growth under our light tariff scenario. This partnership will help Amazon make its case to budget-conscious advertisers.

Linear TV ad spending is dropping faster than expected. In 2023, TV advertising will fall by 9.4% YoY to $60.38 billion. There will be a fractional increase in 2024 due to political advertising, but it will be smaller than typical presidential election year bumps because of lingering effects of the actors’ and writers’ strikes. After 2024, linear TV ad spending will fall every year through 2027.

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.

YouTube ad growth is strong, but concentrated funding and economic uncertainty mean only the most distinct startups may thrive.