Global ad spend set to reach US$1.08 trillion in 2025

Global advertising spending has reached a significant milestone, surpassing US$1 trillion for the first time in 2024, according to WARC's latest report, The Future of Media 2025.

 

This figure is expected to grow by 10.7% in 2025, culminating in a total of $1.08 trillion. Over the past decade, global ad spend has more than doubled and has been growing at a rate 2.8 times faster than global economic output since 2014, reflecting the increasing complexity and diversity of media channels available to marketers.

 

The report finds that brands are increasingly pivoting away from traditional platforms like Google search towards emerging social and retail channels, where younger consumers are actively seeking brand discovery. 

 

 

The rising influence of artificial intelligence adds another layer of complexity, enabling more personalised marketing strategies through data-driven insights. Retail media is becoming a crucial component of this evolution, expanding rapidly as advertisers aim to connect with consumers at various stages of their purchasing journey. To thrive, brands are encouraged to adapt their strategies to navigate the challenges posed by algorithm-driven platforms and leverage the omnipresent nature of commerce which is increasingly 'everywhere'.

WARC identifies three key trends that will define the media landscape in 2025.

Planning in an era of abundance

The vast array of media options presents new opportunities for brands to enhance growth. Advertisers are encouraged to adopt holistic planning strategies that consider media quality, reach, and cost-effectiveness. As consumer attention shifts towards social media platforms, influencers, podcasts, and gaming, brands must innovate their approaches to brand building and adapt campaigns for fleeting consumer interactions.

New challenges and opportunities in search

With over $220 billion projected to be spent on generic search this year, Google retains more than 80% market share. However, younger demographics are increasingly using social media platforms like TikTok and Instagram for brand discovery, challenging Google's dominance. The report emphasises the need for brands to rethink their search engine optimisation (SEO) strategies in light of AI advancements that focus on understanding consumer intent rather than merely providing information. This shift may necessitate a new approach termed Large Language Model Optimization (LLMO), which will require brands to rethink their SEO strategies to remain competitive.

Retail growth fuels commerce media expansion

The retail media sector is booming, reaching $154.8bn in ad spend globally in 2024 with a further 14.8% rise expected in 2025, per Warc. This shift towards commerce media enables brands to engage consumers throughout the purchasing journey. However, advertisers face challenges related to standardisation across platforms and the risk of diverting budgets from traditional advertising channels.

Paul Stringer, managing editor of research and insights at Warc, recognises the complexity of today's media landscape: "Today, media is so vast, so complex, and so changeable, that it can be difficult for brands to make sense of it all." But he also believes that now is the most exciting time to be a media planner as digital advertising evolves from direct-response models to fostering long-term brand effectiveness.

"Advertisers are focusing more on quality over cost when deciding which media environments to advertise in, and signal fidelity is improving thanks to the growth of AI-powered media solutions and an influx of retail media and commerce media networks,” he adds.

As advertisers navigate these changes, they must prioritise quality over cost and leverage AI-driven solutions for improved campaign management. 

The Future of Media 2025 is based on data and insights from Warc, including Warc’s Marketer’s Toolkit global survey of 1000+ marketing executives, and external research.