Q4 2025 Insights
The Q3 2025 Quarterly Services Survey (QSS) for Advertising and Marketing suggests large corporations are maintaining ad spend, reflecting a cautious but non-panicked economic outlook (supporting the GDPNow's moderate growth forecast). However, an analysis of Small Business Optimism Index (NFIB) data shows a concurrent pullback in local and small business ad spend. This indicates a bifurcation in the market, with large players consolidating ad budgets onto proven platforms while smaller firms are cutting back due to high borrowing costs and economic uncertainty.
The Producer Price Index (PPI) for Media Services continues to show upward pressure, meaning the cost of reaching a consumer is rising. When combined with the high-interest-rate environment, the hurdle for a positive Return on Advertising Spend (ROAS) has become significantly higher. This economic pressure is forcing a Q4 pivot toward performance marketing (direct response) over brand building, with budgets highly concentrated on channels that can prove immediate sales.
Sentiment on social media forums reflects anxiety about the rapid adoption of AI in content generation, such as Performance Max for Google, Advantage+ on Meta, Koa/Kokai for TradeDesk, and Creative Studio for Amazon Advertising. Marketers are discussing the ethical and quality decline associated with AI-written copy and generic creative assets. The consensus is that, while AI tools increase volume and efficiency, they lower the creative barrier to entry, making once-impactful, high-engagement content far more valuable and scarce. Either way, agencies, publishers, and ad tech companies are still exploring cost-cutting in favor of AI compared with traditional human workforces.
Consumer sentiment is highly tuned to authenticity debates on platforms like TikTok and Instagram. Users frequently call out "forced" or over-produced influencer campaigns. This qualitative trend signals that Q4 success will rely less on large-scale celebrity endorsements and more on genuine, niche community engagement, demanding that ad agencies be hyper-aware of digital subcultures rather than relying on broad demographic targeting. AI tools, such as Veo3, may even replace influencers.
Individuals in ad operations, ad account management, sales, and similar roles should consider the gig economy, especially signing up for consulting companies. While the work is seasonable and often inconsistent, competitive hourly rates can compensate for lack of work or lower wages at a W-2 role/1099 NEC role.
August 2025 Insights
It all begins with an idea.
A recurring theme is a pervasive sense of burnout and a struggle for work/life balance. While the industry is evolving with new technologies like AI integration for ads optimization, campaign management, CRM maintenance, account management, and even sales, employees feel this is increasing pressure for productivity. Discussions highlight the "always-on" culture, emotional and physical exhaustion, and the challenge of separating work from personal life, especially with the prevalence of remote work.
Managers are overtly training LLMs to observe and record employee key strokes and routines to replace them and impress higher-ups with cost-saving and operation cost reduction. Employees struggle to make ends meet and prove their value against automated apps, programs, and scripts that can do grunt work more efficiently, accurately, and less costly.
The sentiment suggests a desire for more support from employers, including better systems to prevent burnout and a more transparent dialogue about employee well-being and expend-ability. Managers struggle with their identity within digital advertising and marketing, knowing that AI can very easily negate their experience and contributions after their teams are gone.
The most significant trend in the last month has been the surprising rebound in employment. After a period of stagnation and job losses, the sector added 2,800 jobs in July 2025, which is the strongest growth in over a year. This positive shift is happening even as the broader U.S. labor market is cooling, suggesting a unique resilience within the industry. This employment growth is attributed to renewed investment in "brand and performance marketing."
However, this number will likely decline and result in job loss within the next 2 years. Many in advertising and marketing, especially among those under the age of 30, have begin exploring consulting roles and even beginning their own niche agencies, full-service ad operations shops, online marketing agencies, and consultancies. Flash employment may be the trend of the future for digital advertising and marketing.