The global advertising market is projected to grow by 5.9% in 2025, reaching $817.7 billion, as businesses continue leveraging data-driven strategies to connect with their audiences.
While growth is expected to slow compared to 2024’s 6.8%, ad spend remains a critical driver of business performance, outpacing the global economy’s forecasted growth of 3.2%.
Media Channel Trends for 2025
Digital and traditional media channels are evolving at different paces, reflecting shifting consumer behaviors and advertiser priorities. Here’s how the major channels are expected to perform:
Digital Media: Digital remains the fastest-growing channel, projected to increase by 9.2% to capture 62.7% of total global ad spend.
Retail Media: Expected to grow by 21.9%, fueled by the increasing use of retailer consumer data and the rise of connected TV advertising.
Paid Social: Predicted to grow by 8.7%, driven by integrated ecosystems combining shopping, video, and gaming.
Programmatic Advertising: Projected to grow by 11.1%, accounting for more than 70% of digital ad spend.
Television: Advertising continues to transition, balancing legacy formats with emerging digital platforms. Growth remains modest at 0.6% overall, with notable differences between segments:
- Connected TV: Expected to grow by 18.4%, benefiting from ad-supported streaming platforms like Netflix and Prime Video.
- Broadcast Television: Anticipated to decline by -2.5%, as advertisers increasingly shift focus to digital and connected formats.
Out-of-Home (OOH): As digital formats expand, OOH advertising is becoming more sophisticated and targeted. It is forecasted to grow by 3.9%, supported by enhanced capabilities that offer advertisers greater flexibility. Audio and Cinema: Remain steady contributors to the advertising landscape, supported by niche audiences and evolving engagement opportunities:
- Audio Advertising:Including digital audio and podcast formats, is projected to grow by 1.8%.
- Cinema Advertising: Forecasted to increase by 3.2%, driven by improved film release schedules and higher audience engagement post-pandemic.
Print Media: As digital media grows, traditional print continues to face declines. Ad spend in traditional print is expected to fall by -2.5%, with only slight growth in digital print at 0.6%.
Regional Performance
Growth varies across regions, reflecting local economic conditions and the adoption of digital strategies. Here’s what to expect:
- Americas: Expected to lead with 6.3% growth, driven by strong performance in digital channels and continued investments in streaming and retail media. The U.S. remains the largest market, contributing $335.2 billion in 2025.
- Asia-Pacific: Forecasted to grow by 5.8%, with markets like India seeing significant increases due to the adoption of AI-driven ad placements.
- EMEA: Growth is projected at 5.0%, supported by digital advancements in markets like the UK, which is set to grow by 5.7%, reaching $51.7 billion.
Industry Growth Drivers
Certain industries are expected to drive ad spend growth in 2025, reflecting broader economic and consumer trends. Significant ad spend increases are forecast in Finance (+6.4%), Pharmaceuticals (+5.8%), and Travel and Transportation (+5.5%). Political ad spending, which saw sharp increases in 2024 due to elections, is expected to decline significantly in 2025.
Algorithmic Advertising Dominance
As the advertising landscape evolves, algorithmic strategies are playing a pivotal role. By 2027, 79.0% of ad spend is expected to be algorithmically driven, emphasizing the importance of leveraging data and custom algorithms to optimize media investments. These tools empower brands to achieve precision targeting, improve campaign effectiveness, and remain competitive in an increasingly dynamic market.
Global ad spend growth in 2025 reflects the ongoing transformation of the media landscape. With digital channels leading the way and algorithmic strategies reshaping media planning, businesses must adapt to this evolving environment to drive meaningful connections and sustained growth.
Ready to navigate the future of advertising? Contact Kara5 to start shaping your strategy today.