AI will have a mixed impact overall but will likely lower search ad spending
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US digital ad spending growth will drop below 10% YoY this year for the first time since 2009, but it won't be the last time that happens this decade. Tariffs have had a lighter effect than many feared, but they’re a big reason that this year’s growth will miss double digits. Longer term, AI will temper search growth, while some rapidly growing areas, such as retail media, connected TV (CTV), and social, will slow down for a variety of reasons.
Key Question: Why is digital ad spending growth slowing down?
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