Macro Events and Ad Tech: How Tariffs Shaped August’s Market
Take a closer look at how trade policy can ripple into ad budgets
August 2025 brought a rare overlap between international trade policy and digital advertising markets. The most visible headline was The Trade Desk’s sudden stock decline — nearly 30% in a matter of days — following comments from its CEO that tariffs were weighing on large-brand advertisers.
At first glance, tariffs and ad tech might seem like distant concerns. But the market reaction suggests investors and advertisers alike see a link. This post takes a closer look at how trade policy can ripple into ad budgets, and what else in the ad tech ecosystem felt the impact of August’s macro events.
The Trade Desk and Tariff Exposure
The Trade Desk has positioned itself as a neutral demand-side platform (DSP), offering access to open internet inventory across channels like display, CTV, and audio. Its revenue is closely tied to brand advertising budgets: when big advertisers spend less, Trade Desk’s transaction volumes decline.
Tariffs, in this case, act as an indirect tax on the goods that advertisers sell. Higher costs can squeeze corporate margins, leading to reduced marketing budgets. Large consumer brands — particularly in categories like retail, automotive, and consumer electronics — are often the first to adjust spending when input costs rise.
The company’s CEO pointed to these pressures explicitly, and the market responded quickly. Investors interpreted his comments as evidence that tariffs are dampening ad demand at the top of the funnel. Since The Trade Desk relies on sustained brand investment in awareness campaigns, its stock price reflected expectations of softer growth ahead.
Broader Implications for Ad Tech
The Trade Desk wasn’t the only company exposed to macro currents in August. Across the ad tech landscape, several patterns emerged:
Supply chain costs influencing ad budgets: Categories most affected by tariffs — consumer goods, automotive, and electronics — are also heavy advertisers. When these brands slow spend, platforms that serve them feel the pullback.
Currency fluctuations and global buying: Tariff policies often trigger currency volatility. For global campaigns, this can increase the complexity of buying across regions and can shift spend toward markets with stronger currencies.
Investor sentiment on platform risk: The Trade Desk’s decline also raised questions about the resilience of programmatic platforms in downturns. Unlike subscription-based SaaS firms, ad tech companies are directly exposed to swings in ad budgets.
Other Macro Events in August
Tariffs weren’t the only macro factor intersecting with advertising in August:
Consumer confidence dips: Survey data in August showed a slight decline in consumer confidence in both the U.S. and Europe1. Historically, advertising budgets track closely with confidence levels, especially in discretionary categories like travel and luxury.
Regulatory actions: Beyond trade, the European Commission’s fine against Google for anticompetitive ad practices2 also reflected broader government involvement in market dynamics — though this was more structural than cyclical.
Energy price volatility: Rising energy costs3, partly tied to geopolitical tensions, may possibly influence transportation and logistics companies. These sectors also happen to be significant DOOH and digital advertisers.
Looking Ahead
It remains an open question how persistent these tariff-driven effects will be. Some analysts suggest they may be temporary shocks as companies adjust supply chains. Others argue that prolonged trade frictions could structurally reduce brand spending power, creating headwinds for ad-supported business models.
For now, August 2025 serves as a reminder: ad tech doesn’t exist in isolation. Global trade policy, currency shifts, and energy markets can all influence advertiser behavior. The Trade Desk’s stock movement was the most visible signal, but it was part of a larger story — one where macroeconomics and advertising are increasingly intertwined.
https://www.prnewswire.com/news-releases/us-consumer-confidence-little-changed-in-august-302538912.html
https://techcrunch.com/2025/09/06/eu-fines-google-3-5b-over-adtech-abuse
https://sunlightenergygroup.com/2025/08/29/energy-market-recap-wrapping-up-august-2025