The news: Meta is refusing to change its 鈥減ay or consent鈥� model in the EU, per Reuters, risking fines to protect its ad-targeting capabilities. The company argues it鈥檚 being singled out and that 鈥渁 user choice between a subscription for no ads service or a free ad-supported service remains a legitimate business model for every company in Europe鈥攅xcept Meta,鈥� per Reuters.
Our take: This is a battle for user data, and with the DMA鈥檚 prior victories over Meta, it鈥檚 one fight that Meta may not win. Marketers should track Meta鈥檚 changing compliance stance, prepare for restrictions on user-level data, and consider spending on platforms with fewer regulatory risks.
Impact on Digital Ad Spending. We expect digital ad spend to range from $324 billion to $346 billion in 2025, with a moderate tariffs scenario of $335 billion. The heavy tariffs scenario is a 6.3% reduction versus the limited tariffs scenario (the limited scenario corresponds to our existing forecast).
The digital landscape in Europe is slowing, but opportunities for advertisers, brands, and retailers still exist. Knowing where to look to achieve the best outcomes will be paramount.
YouTube has more users than Facebook, Netflix, or Spotify. But its advertising revenues do not match its vast reach. This report contextualizes the opportunities and scope for growth in various media spheres.
The European Court of Justice ruled in 2024 that Google must pay a 鈧�2.4 billion ($2.6 billion) fine for abusing market dominance in the shopping space by making its recommendations more prominent in search results than rivals. Further regulatory scrutiny is mounting against Google, with the company facing numerous antitrust cases and lawsuits over its data collection practices.