The news: Digital advertising had a strong showing in Q1 2025, with major platforms reporting growth across search, social, streaming, and retail media.

But looking ahead, macroeconomic headwinds—particularly tariffs and regulatory action—are clouding the outlook. A temporary 90-day US-China tariff pause offers some relief, yet many advertisers are already pulling back spend or reallocating budgets in anticipation of higher costs and geopolitical uncertainty.

(For a more exhaustive analysis of companies from Google to Netflix to Meta and beyond, read our new Digital Advertising Earnings Q1 2025 report.)

Why it matters: The digital ad sector is entering a precarious period marked by inflation concerns, trade policy shifts, and regulatory threats. While Q1 performance showed resilience, the slowdown in guidance across nearly every platform signals a cautious recalibration.