The ad industry is preparing for a huge blow from an economic downturn with hiring freezes and by cutting back on projects

• Snap’s disastrous earnings is an indicator to some industry insiders that the digital ad market is collapsing.
• Advertisers are bracing for a major hit later this year or early next.
• Many advertisers are taking action now by freezing hiring and pausing big projects.

Snap’s dismal showing in its recent earnings due to lost ad spend signified an ad market further collapsing in the face of a likely recession. And now, the ad industry is scrambling to figure out what to do in a worst-case economic scenario.

“I think the digital ad market collapsed in September,” one adtech exec told Insider, noting a precipitous drop that month in particular. “Snap ripped the Band-Aid off that.”

It’s not just digital that’s impacted — the entire ad industry is expecting budget cuts in the near future.