Global advertising spend will grow 8.9% in 2025, with digital offsetting a dip in traditional media, according to forecast by Emarketer.
Most analysts have started to pull back on their forecasts for 2025 in the light of deteriorating confidence as the as the Trump administration in the US goes ahead with raising tariffs.
Emarketer's latest forecast for 2025 says Digital is predicted to jump by 12.7% and traditional to fall 1%.
New ad dollars flow almost entirely to digital in most major markets around the world.
“Digital ad spending’s consistent double-digit growth will offset weakness in traditional advertising,” said Emarketer.
“Odd numbered years usually see a downturn in traditional ad spending growth thanks to the absence of major global sporting events and fewer elections around the world.
“We expect a similar outcome in 2025. However, the digital side of the industry is still doing very well, and its annual increases will keep total media ad spending growth in the high single digits for several more years.
“Technically, traditional ad spending also remains on an upward trajectory, but its progress has become glacial.
“Between 2022 and 2028, traditional’s annual take will increase by just under $10 billion. By contrast, digital will draw in almost $90 billion in new money in 2025 alone.”
eMarketer said retail media is the most important worldwide growth driver right now. growing faster than other formats at the worldwide level.
It will make up 22.4% of digital ad spending this year, a share figure that has surged recently thanks to the format’s booming growth.
Retail media’s 17.4% increase in 2025 will once again exceed the growth rate for traditional search (12.2%) and display (13.3%).
The US and China account for most worldwide ad spending, but many countries have very large ad markets
In 2025, nearly 59% of all ad spending will take place in the US or China, but that still leaves plenty of money for everywhere else.
More than $426 billion in spending will take place outside of the world’s two largest economies.
The UK’s $53.43 billion ad market is enormous, and the rest of Europe will produce an additional $140 billion.
Up-and-coming India will see over $14 billion in spending this year, nearly hitting $20 billion by 2028.
Australia is ranked 9th in the world with $US14.72 billion in ad spend.
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