Global ad spending topped $1 trillion for the first time last year and is expected to grow 10.7% this year, according to the latest forecasts from the World Advertising Research Center (WARC).
An anticipated total spend of $1.08 trillion in 2025 would mean that global ad spend has more than doubled over the last decade, meaning that it has grown almost three times faster than global economic output since 2014, with more available media channels than ever before.
That’s according to WARC’s “The Future of Media 2025” report, which outlines key trends like planning in an era of abundance, new challenges and opportunities in search, and how retail expansion fuels commerce media growth.
“Today, media is so vast, so complex, and so changeable, that it can be difficult for brands to make sense of it all,” WARC Managing Editor for Research & Insights Paul Stringer says in a news release. “As we reach the midpoint of the decade, this is also the most exciting time to be a media planner.”
He continues, “Digital advertising has matured beyond direct response to support brand-building and long-term 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.”
WARC says the vast array of available marketing options is creating new opportunities for brands to drive growth via astute combinations of different media channels. But one size won’t fit all. “Planning holistically and choosing the right combination will be different for every brand and vary by context and objective,” the research group says. “Media quality, reach, and price will be critical in helping planners determine the optimum stack for brands.”
With resources moving to other channels (social, podcasts, gaming, etc.), marketers are adapting campaigns for platforms where “attention is more fleeting, and lots of little exposures need to work together to improve brand outcomes.”
That could mean putting more trust in artificial intelligence, even if it means giving up some autonomy and control.
Meanwhile, WARC estimates more than $220 billion will be spent on generic search globally, with Google taking more than 80% of the share. Search’s future, the organization says, looks to be about intent, not information, aided by sophisticated uses of AI. The proliferation of AI will lead to heightened competition to “identify consumer intent in ever more granular ways,” allowing brands to build a more nuanced understanding of how audiences behave — paving the way for more personalized and relevant communications.
Another trend identified by WARC is how commerce is increasingly everywhere, with retail media expanding. Retail media was expected to reach $154.8 billion in ad spend globally last year, with a 14.8% rise expected this year, with new commerce media platforms launching, and social commerce on the rise.
“Commerce media is becoming the infrastructure that underpins the entire digital advertising ecosystem, and offers brand building potential,” WARC says. “Many retail and commerce media platforms now sell ads that allow advertisers to reach consumers across the purchase journey, from awareness all the way through to conversion.
“Advertisers will need to weigh up these opportunities carefully, supported by holistic measurement that allows them to show the impact of commerce on long-term brand and business metrics.”