TikTok’s future in the U.S. is looking shakier by the day, and advertisers aren’t waiting around to see how it plays out. According to AdRoll’s latest State of Digital Advertising Report, brands are slashing their TikTok ad spend, causing an 80% drop in cost per mille (CPM) over the past year.
While TikTok scrambles to reassure advertisers, Pinterest is seeing the opposite effect. Ad prices on the platform have jumped 120%, fueled by brands looking for a stable alternative.
What’s Driving the Shift?
Concerns over TikTok’s potential ban or restrictions in the U.S. have made it a risky bet for advertisers. With no clear path forward, many are moving budgets to platforms with a more predictable future.
Meta, meanwhile, has remained steady. Facebook and Instagram’s ad prices haven’t seen wild swings, signaling a more stable demand.
Economic Uncertainty Reshapes Digital Ad Spend
It’s not just TikTok’s troubles that are making brands rethink their ad strategy. Economic worries are creeping in. The U.S. consumer sentiment index fell nearly 10 points in early 2025, reflecting growing anxiety over inflation, interest rates, and potential trade policy changes.
With marketing budgets under pressure, companies are shifting ad dollars to channels that offer better returns. That’s why Connected TV (CTV) is suddenly on the rise.
Connected TV Gains Serious Traction
CTV—advertising on streaming platforms like Roku, Hulu, and YouTube TV—is now a priority for more marketers. AdRoll’s report found that 22% of advertisers plan to increase their CTV budgets this year. Last year, that number was zero.
Brands are drawn to CTV because it combines the broad reach of traditional TV with the precision of digital targeting. And the results are promising. Viewers exposed to a CTV ad show a 23% boost in brand awareness and a 14% increase in purchase intent, according to George Castrissiades, AdRoll’s CTV strategy lead.
The Third-Party Cookie Phase-Out: What Happens Next?
Another shift on the horizon is Google’s long-anticipated phase-out of third-party cookies in Chrome. With no universal replacement in place, brands are scrambling to adjust.
AdRoll’s report suggests advertisers should start testing new strategies now. That means leaning into first-party data, contextual targeting, and Google’s Privacy Sandbox solutions to maintain ad performance once cookies disappear.
Where Do Advertisers Go From Here?
With TikTok ad prices in freefall, Pinterest seeing a surge, and CTV gaining momentum, brands are rethinking where to put their money. Add in economic uncertainty and major shifts in online tracking, and digital marketers are facing a lot of big decisions.
For those looking to stay ahead, keeping a close eye on these trends—and being ready to shift gears quickly—will be the key to staying competitive in 2025.