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Global ad market prospects further downgraded as retailers, automakers cut ad budgets and Chinese brands redirect spend due to US trade tariffs

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Global ad market

Growth forecasts for advertising spend have been downgraded further this year (-0.5pp to +6.2%) following an initial $20bn cut in March

Key sectors such as retail (-6.1%) and automotive (-4.0%) are expected to cut ad budgets in the wake of mounting tariff pressures on supply chains

Alphabet, Amazon and Meta are set to take a combined market share of 54.7% excluding China this year – equivalent to $524.4bn – rising to 56.2% in 2026

US ad market prospects cut by half a point to +5.2% as Chinese retailers such as Temu and Shein redirect spend to Canada, Australia and Europe

Global ad market growth is expected to accelerate to 6.5% next year, with a total of $1.23trn equivalent to almost $150 per capita

WARC Global Ad Forecast Q2 2025 update: Growth cut amid trade trepidations

12 June 2025 – A new study from WARC, the experts in marketing effectiveness, has found that global advertising spend is now on course to grow 6.2% this year to $1.16trn, a downgrade of half a percentage point (pp) from WARC’s March forecast due to growing market volatility. Key sectors such as retail (-6.1%) and automotive (-4.0%) are set to cut ad spend this year, while ad spend growth across technology and CPG brands is muted compared to previous rates.

James McDonald, Director of Data, Intelligence & Forecasting, WARC, and author of the research, says: “The latest downgrade is attributable to a reticence to commit ad budgets across key markets in the second quarter. This cooling is underpinned by tariff trepidations and ebbing business and consumer confidence, prompting advertisers to front-load budgets and reallocate spend geographically, particularly towards Canada, Australia, and Europe.

“Trade tensions are forcing major sectors to rethink their ad strategies. Automakers are cutting back amid rising costs and a pivot to performance media, while retailers tighten budgets as tariffs squeeze margins. Tech firms face growing uncertainty despite continued investment, and CPG brands are leaning into retail media as supply chains come under pressure. Across the board, agility is the new imperative.”

WARC’s latest global projections are based on data aggregated from 100 markets worldwide, and leverage a proprietary neural network which projects advertising investment patterns based on over two million data points.

Key media outlook: AI propels Alphabet, Amazon and Meta to 54.7% market share outside of China

Search to account for more than a fifth (21.5%) of the ad market this year, with spend rising 7.4% to $248.6bn despite regulatory threats
Social media – the largest single advertising medium globally – is poised to account for a quarter (25.8%) of all ad spend this year, at a total of $298.3bn
Retail media set to be fastest growing advertising medium this year (+14.4%), though trade disruption threatens ad receipts from consumer packaged goods (CPG) brands

Pure play internet – encompassing social media, retail media, online display, online classified and paid search – grew 11.5% in the first quarter of 2025 to $195.2bn, equivalent to 70.8% of all global ad spend. The growth rate is expected to ease to 9.9% during the second quarter and 8.9% over the second half of the year – to an annual total of $829.2bn (+9.8% vs. 2024).

The pure play internet sector is on course to top $1trn in ad revenue in 2028, by when it would account for almost 80% of all advertising spend. Alphabet, Meta and Amazon’s combined share of advertising spend outside of China is expected to reach 54.7% this year (+1.8pp vs. 2024) with an aggregated total of $524.4bn. This share is set to rise further – to 56.2% – next year.

Within the pure play internet total, search advertising spend is forecast to rise 7.4% this year and 6.8% next, by when the market would be worth $265.5bn – equivalent to 21.5% of all spend, up from 21.2% in 2024.

Within the paid search total, Google’s expected $213.3bn take would account for 85.8% of the market this year. The embedding of artificial intelligence into the search journey stands to disrupt ad revenue models, but Google’s dominance in search advertising will likely persist in the near term, aided by SMEs.

Social media is now set to account for over a quarter of all ad spend this year. A strong first quarter rise of 14.9% precedes an expected slowdown, with growth averaging 11.2% over the coming three quarters as tariffs begin to impact Asian brands disproportionally. The social market is still on track to grow 12.0% to $298.3bn this year.

​​Meta last month outlined plans for an end-to-end AI solution covering the generation of creative, ad placement and performance optimisation – primarily for its long tail of small advertisers rather than large brands. Meta’s ad business is forecast to grow 12.6% to $142.1bn this year, a cooling from the 18.4% rise recorded in 2024.

Retail media is expected to be the fastest-growing medium tracked by WARC this year, with an anticipated rise of 14.4% to a total value of $176.2bn. This represents a 15.2% share of global ad spend this year.

Amazon’s retail media ad business grew 21.0% to $13.3bn during the first quarter, accounting for a third (33.4%) of the global retail media market. WARC projects Amazon’s ad income will grow by 16.1% to $60.6bn this year. A further rise, of 14.9%, is forecast next year, giving Amazon a 35.4% of global retail media spend and 5.7% of all advertising spend worldwide. Like other online retailers, Amazon is exposed to tariffs imposed on its Chinese sellers, thought to be well over half of all vendors on the platform.

Global video advertising spend is forecast to decline by 2.6% in 2025 to $183.9bn, equating to 15.9% of all spend this year. The contraction is driven by a continued decline in linear TV, which still represents over three-quarters of the total video market.

Linear TV spend is expected to fall by 6.3% this year – a drop exacerbated by 2024 major sporting and political events. Notably, 2025 marks the first year that retail media will command a greater share of global ad spend than linear TV.

Video-on-demand (VOD) advertising is forecast to rise by 13.2% to $39.9bn, a downgrade from the 15.4% projected in March. Within this, Netflix is due to see ad billings double this year (from a small base) due to the relative resilience of its ad tier during economic downturns.

Key product sector trends: Tariff trepidations hit retailers and automakers

Automotive ad spend down 4.0% this year as manufacturing stalls and key players pare back on brand building
Retailers set to reduce ad spend by 6.1% as margins tighten; US retailers are vulnerable to disruption among Chinese suppliers
Ad growth set to slow markedly among tech & electronic and consumer packaged goods (CPG) brands as barriers to trade impair access to components

The automotive industry invested $56.8bn in advertising last year with almost a quarter (22.9%) going to premium video formats. However, budgets are shifting from video towards digital platforms, with automotive spend on social ads surpassing linear TV for the first time in 2025.

Despite WARC’s projected 4.0% cut in automotive advertising spend this year (an improvement on the 7.3% originally projected in March), the sector should rebound next year with a 7.5% rise pushing spend to a total of $58.6bn.

Retail, with projected ad spend of $166.1bn this year (14.3% of the global ad market), faces a fall of 6.1% from 2024 levels. This largely reflects impending US trade tariffs on key goods and raw materials, which are poised to increase costs for global retailers, particularly those heavily reliant on Chinese imports such as Amazon and Walmart.

Retailers are set to accelerate shifts in marketing strategies in response to changing cost structures and consumer behaviour. As predicted in March, large Chinese retailers targeting US consumers – including Temu and Shein – have reallocated advertising spend to other markets such as Canada, Australia and Europe.

The tech and electronics sector is expected to spend $90.3bn on advertising this year. This year-on-year rise of 5.5% represents a cut from our +6.2% forecast in March, and is a sharp slowdown from the 24.3% rise recorded last year. Tariffs are driving the sector to adjust go-to-market strategies, shifting investments toward less-affected regions or different product lines to buffer against hardware margin erosion.

Consumer Packaged Goods (CPG) companies experienced their weakest first quarter sales revenues since the pandemic. Further, with tariffs reaching as high as 145% for Chinese imports and additional tariffs on goods from Canada and Mexico, CPG companies are facing major disruption to their established supply chains.

WARC expects core CPG sectors, such as soft drinks (+7.1%), toiletries & cosmetics (+7.2%) and household & domestic (+4.2%) to record growth in advertising spend at a global level this year, though all see a significant slowdown from 2024. Taken together, the CPG sector is expected to increase advertising spend by 6.7% this year to a total of $200.5bn.

Key market outlook: US growth prospects cut as Chinese brands look elsewhere

US ad market expected to post a +5.2% rise this year, less than half that recorded in 2024 (+13.5%) and has been cut by half a point since March
Canadian ad spend growth set to ease to 3.5% this year despite some Chinese advertisers redirecting spend from the US
The Chinese ad market continues to struggle with weak domestic demand; growth is set to slow to 7.2% this year
The UK, German, French and Japanese economies are all stalling and present a severe risk of stagflation over the forecast period

WARC’s latest forecast suggests the US ad market will grow 5.2% this year to $451.6bn, half the growth rate recorded in 2024 (+13.5%) and representing a 0.5 point downgrade from our March forecast. The US ad market – the largest worldwide with a 39.0% share – faces major headwinds including tariff uncertainty, disrupted supply chains, lower consumer demand and stagflation.

Despite a strong first quarter performance – +7.6% to $105.7bn, boosted by Chinese brands accelerating spend ahead of the anticipated tariff changes – US ad market growth is expected to slow significantly through to year-end.

Chinese brands appear to be redirecting ad spend to Canada to negate US market barriers, yet Canadian ad growth is expected to slow to 3.2% this year amid deteriorating economic conditions. The IMF had downgraded Canada’s GDP growth forecast by 0.6pp to 1.4%, with the Bank of Canada projecting growth rate to approximately +0.5% in 2025.

Digital platforms dominate Canada’s media landscape, projected to capture 77.6% of the total market this year. This digital transformation stems from granular targeting capabilities drawing advertisers away from traditional media, with retail media now fuelling additional growth.

China is experiencing significant structural shifts, characterised by increasingly price-conscious consumers and a digital ecosystem dominated by major players including ByteDance (Douyin), Alibaba, and Tencent, creating challenges for smaller platforms. Short-form video has become instrumental in brand promotion in China, while marketers are prioritising performance marketing over brand building initiatives.

Projected US tariffs are expected to dull China’s economic growth by 0.2 points in 2025, creating economic uncertainty and prompting a downward revision of our 2025 advertising growth expectations to 7.2% (from 8.3% in March). The outlook for 2026 has been upgraded to 7.9% growth (from 6.9%), reflecting the online sector’s resilience.

The AA/WARC Expenditure Report forecast for the UK ad market stands at +6.5% in 2025, to a total of £44.3bn ($54.7bn). The highly digitalised UK market sees online ads accounting for over four in five (84.6%) dollars this year, with social (+13.1% this year) and search (+8.2%) fuelling growth despite weak economic prospects.

Germany’s economy is also struggling, at just +0.4% expected growth by the OECD this year following a cut of 0.3pp from its last outlook. WARC forecasts a modest 2.9% rise in German advertising spend to €26.4bn ($29.5bn). Growth in France’s ad market is also set to be muted this year, at +2.7% to €18.8bn ($20.3bn). Japan faces a challenging outlook, too, with advertising spend expected to rise by 3.3% to ¥5.8trn ($39.0bn) this year.

 

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SLB commissions new fluids systems plant in Pemba to support Mozambique’s offshore energy development

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Mozambique

New facility expands in-country drilling and completion fluids capability, advancing the next phase of SLB’s growth in Mozambique

PEMBA, Mozambique, October 9, 2026/APO Group/ –SLB (NYSE: SLB) (www.SLB.com) announced the opening of a new fluids systems plant in Pemba, Mozambique. The new facility strengthens in-country capacity to prepare, store and deliver drilling and completion fluids for offshore operations, reinforcing the infrastructure needed as Mozambique’s offshore activity grows and its role as a strategic energy hub for East Africa continues to expand.

The commissioning of the plant, also known as a liquid mud plant, coincides with SLB marking 70 years of operations in Mozambique. It reflects the company’s long-term commitment to investing in people, infrastructure and capability that support the country’s long-term offshore energy development plans.

 




  

With an initial storage capacity of 21,000 barrels, the liquid mud plant provides a scalable platform for future growth, supporting multiple customers and rising offshore activity while improving logistics and enhancing operational flexibility.

As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions

“As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions,” said Miguel Baptista, Central, East and Southern Africa, Managing Director, SLB. The new liquid mud plant strengthens local energy infrastructure, expands opportunities for local content development, and enhances our ability to support customers as they deliver some of Africa’s most significant offshore energy resources.”

The liquid mud plant project was delivered with strong local participation and that momentum is expected to continue into operations. During project delivery, more than 100 jobs were created in Pemba with nationals representing 80% of the workforce, reflecting a focus on building local capability.

The project was delivered with a strong focus on safety, operational integrity, and quality, achieving more than 67,000 hours worked without a recordable safety incident.

This key infrastructure strengthens SLB’s ability to support consistent service quality and enhance supply chain readiness for increasing offshore activity across Mozambique, supporting customers execute safely and efficiently while developing local skills and expertise.

Key Points:

  • SLB has commissioned a new fluids system plant in Pemba, expanding in-country drilling and completion fluids capability for offshore operations.
  • With an initial storage capacity of 21,000 barrels, the facility provides a scalable platform to support growing offshore activity in Mozambique.
  • The investment marks the next phase of SLB’s growth in Mozambique, strengthening local capability and supporting long-term offshore energy development.

Distributed by APO Group on behalf of SLB.

 

 




 

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South African Energy Storage Association (SAESA) welcomes 4,600 MW battery storage prioritisation and calls for integrated energy planning

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Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply

JOHANNESBURG, South Africa, October 9, 2026/APO Group/ –The South African Energy Storage Association (SAESA) (www.SAESA.org.za) welcomes the prioritisation of 4,600 MW of battery energy storage under the first Integrated Resource Plan (IRP) 2025 Section 34 determination.

 




  

The timing is significant. Recent Integrated Energy Plan (IEP) modelling and assumptions discussions highlighted a fundamental shift that South Africa’s energy planning now needs to capture: we cannot plan the future power system by counting megawatts of generation alone.

We must plan for when energy is available, where it is available, how it moves through a constrained grid and how it is stored and dispatched when the system needs it most.

The announcement reinforces that shift. Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply.

For SAESA, the message for the IEP is clear: storage, flexibility and system services must be modelled as integral components of South Africa’s future electricity architecture, with their contribution considered from the outset of generation planning.

“The IEP must plan the power system we are becoming, not simply model the power system we have inherited,” says SAESA.

The IEP must plan the power system we are becoming, not simply model the power system we have inherited

Partnership with C&I Energy + Storage Summit

SAESA is an association partner of the C&I Energy + Storage Summit, created by VUKA Group, taking place on 28–29 October 2026 at The Maslow Hotel, Sandton, Johannesburg.

The summit brings together commercial and industrial energy users, project developers, financiers, regulators and solution providers to explore practical approaches to energy security, procurement and storage deployment.

For businesses assessing how storage can support their operations, the event offers an opportunity to meet SAESA and engage with the wider energy community on the decisions shaping South Africa’s evolving electricity system.

Commercial and industrial energy decision-makers are invited to apply to attend as hosted buyers. Qualifying buyers receive complimentary summit access and curated opportunities to engage with industry partners.

 

Meet SAESA at C&I Energy + Storage Summit: Join the Hosted Buyer Programme

The Hosted Buyer Programme connects commercial and industrial energy decision-makers with solution providers shaping South Africa’s evolving private energy market.

Qualified energy buyers receive complimentary access to the summit and curated engagement with industry partners exploring energy procurement, storage deployment and project development.

Apply for the Hosted Buyer Programme (https://apo-opa.co/4ehLijJ)

Distributed by APO Group on behalf of VUKA Group.

 




 

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Afreximbank welcomes launch of Africa Credit Rating Agency as an important step in strengthening Africa’s financial architecture

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Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets

PORT LOUIS, Mauritius, October 8, 2026/APO Group/ –African Export-Import Bank (Afreximbank) (www.Afreximbank.com) welcomes today’s launch of the Africa Credit Rating Agency (AfCRA), an important milestone in strengthening Africa’s financial architecture and expanding the continent’s capacity to generate credible, independent analysis of African credit risk.

 




 
 

Credit ratings play an important role in determining access to capital, influencing investor perceptions and shaping the cost at which governments, institutions and businesses can finance development. It is therefore essential that assessments of African credit risk are independent, rigorous and evidence-based, while reflecting a complete understanding of the structures, institutions and economic realities being assessed.

The establishment of AfCRA adds an important African-led source of credit opinion to the market. Its value will not be measured by whether it produces more favourable ratings, but by the credibility of its analysis, the quality of its data and transparency of its methodology, and its ability to deepen understanding of African sovereigns, sub-sovereigns and corporate credit.

This is particularly important given that many African issuers remain unrated, while local-currency and sub-sovereign markets continue to have limited rating coverage. Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets.

AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans

Alongside fellow members of the Alliance of African Multilateral Financial Institutions (AAMFI), Afreximbank has consistently maintained that African Multilateral Financial Institutions should be assessed on the basis of their fundamentals, performance, legal frameworks, mandates and operating models. Ensuring that these institutional characteristics are properly understood is essential to achieving informed, balanced and credible assessments of African risk.

Commenting on the uniqueness of the African market, and need for AfCRA’s rating methodology to reflect this, Mr Denys Denya, Senior Executive Vice President, Afreximbank, said: “The rating methodology AfCRA develops must recognise the uniqueness of our environment and its institutional structures. The Agency must set its own standards and not follow those set elsewhere — it must build a unique identity that conforms to an ‘African best practice.”

Highlighting the need for the autonomy of the Africa Credit Rating agency as it takes off, Mr Denya added: “Most importantly, AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans. We must all use it, and in return expect a complete assessment of where we (Africa) stand: the strengths the market has ignored, and the weaknesses we still need to fix.”

AfCRA should therefore be seen as complementary to existing international and regional rating agencies, broadening the range of credible analysis available to investors and issuers while strengthening competition, transparency and analytical capacity within Africa’s credit markets.

As Africa seeks to mobilise the scale of capital required for industrialisation, trade, infrastructure and economic transformation, credible African institutions that improve information, strengthen market confidence and deepen the continent’s financial markets will become increasingly important.

Afreximbank congratulates the African Union, the African Peer Review Mechanism (APRM) and all those involved in bringing AfCRA from concept to launch, and looks forward to the contribution the Agency will make to deeper, more transparent and more efficient African capital markets.

Distributed by APO Group on behalf of Afreximbank.

 




 

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