Global Ad Spend Forecasts 2025: 5.9% Growth Predicted as Algorithmic Strategies Reshape Media Investments

• The global advertising market is forecast to grow by 6.8% year-over-year to close 2024 at $772.4 billion.
• The UK market boasts even stronger growth in 2024 at 7.5%, revised from the 6% forecast in May
• Ad spend growth is forecast to continue at 5.9% in 2025, yet still outpacing the global economy by 2.7 percentage points.
• Algorithmically enabled ad spend is estimated to reach 59.5% of total ad spend in 2024 and 79.0% in 2027.

Dentsu's latest Global Ad Spend Forecasts reveal a projected 6.8% growth in global advertising spend for 2024, reaching $772.4 billion. This growth projection has been revised up following the return to double-digit growth (+10.7%) of digital ad spend, the impact of sporting and political events, and improved outlooks across the US, UK, Brazil, and France.

• The Americas: Expected to lead in 2025 with 6.3% growth, driven by robust US and Brazilian markets where digital and streaming see sustained investments.
• Asia-Pacific: Forecasted to increase by 5.8%, with AI-driven ad placements contributing to the increase in digital ad spend in markets like India.
• EMEA: Projected growth of 5.0%, with strong digital performance in key markets.
• UK: Ad spend is expected to grow by 7.5% in 2024 and 5.7% in 2025 to reach $51.7 billion, thanks to strong growth from digital media.

As the industry enters what dentsu identifies as the algorithmic era, data-enabled advertising will increasingly shape media strategies, with algorithmically-enabled ad spend forecasted to reach 79.0% of total ad spend by 2027.

Jenny Bullis, Media Practice CEO UK&I at dentsu, said: "Our latest Ad Spend forecasts show that investment in advertising remains a priority for UK businesses to drive growth. Digital spend continues to outpace other channels, as brands take advantage of the depth and pace of connection it powers with their customers. As competition for consumer engagement grows, harnessing the algorithms that serve our media is key to delivering business value from this investment."

From a media channel standpoint, the dentsu Global Ad Spend Forecasts report highlights that digital is expected to remain the fastest-growing channel, with a projected increase of 9.2% in 2025 (8.8% three-year CAGR to 2027) to reach $513.0 billion and capture 62.7% of global ad spend. Significant growth is anticipated across key digital segments, with retail media leading the way at +21.9% year-over-year (19.7% three-year CAGR to 2027) as advertisers capitalize on the high value of retailer consumer data and increasingly invest in offsite advertising, including connected TV.

Paid social is forecast to grow by 8.7% in 2025 (7.8% three-year CAGR to 2027), supported by an integrated ecosystem that blends shopping, video, search, and gaming capabilities. This channel remains critical for engaging younger audiences, with 79.7% of Gen Z using Instagram monthly and 42% of CMOs planning to boost influencer marketing investments. Paid search is expected to increase by 6.7% (6.5% three-year CAGR 2027), driven by continuous advancements in AI-powered features that sustain relevance amid the rise of social and retail search.

Online video advertising is projected to rise by 8.0% as advertisers continue to seek out high attention and trusted environments. Programmatic advertising is set to grow by 11.1% and will account for more than 70% of digital ad spend, with sustained momentum (10.9% three-year CAGR to 2027).

Television ad spend growth is forecast to show marginal growth of 0.6% in 2025, with connected television rapidly increasing (+18.4%) thanks to ad-supported streaming, and broadcast television declining (-2.5%). Meanwhile, print media continues to contract, while cinema and out-of-home (OOH) advertising continue to grow by 3.2% and 3.9%, respectively.

Significant ad spend increases are anticipated in finance (+6.4%), pharmaceutical (+5.8%) and travel and transport (+5.5%) as these sectors adapt to meet evolving consumer needs.

For a detailed look at dentsu's insights and data, download the full dentsu Global Ad Spend Forecasts here: https://bit.ly/4eSLbc9