The global advertising industry is entering an era of transformation as algorithmic advancements shape media investments and consumer engagement.
According to Dentsu‘s latest Global Ad Spend Forecasts, global ad spend is expected to grow by 5.9% in 2025, outpacing the global economy by 2.7 percentage points.
As brands continue to leverage digital channels and data-driven strategies, this growth trajectory reflects the rising importance of precision and personalisation in marketing.
Digital Ad Spend: A Powerhouse for Growth
Digital remains the fastest-growing media channel, projected to increase by 9.2% in 2025 to capture 62.7% of total global ad spend, or US$513 billion.
Among digital’s key drivers:
Retail Media: Leading the pack with a 21.9% year-over-year surge, bolstered by advertisers’ ability to capitalise on retailer consumer data and invest in offsite advertising like connected TV.
Paid Social: Growing at 8.7%, driven by its ecosystem of shopping, video, and gaming capabilities—essential for engaging Gen Z, 79.7% of whom use Instagram monthly.
Programmatic Advertising: A standout, expected to grow by 11.1%, accounting for over 70% of digital ad spend, underscoring the rise of automated, targeted media strategies.
Regional Powerhouses: Where Growth is Happening
Americas: Leading the Charge
Expected to grow by 6.3%, the Americas, particularly the US and Brazil, are driving ad spend through sustained investments in digital and streaming platforms.
Asia-Pacific: AI-Driven Surge
With a forecasted growth of 5.8%, Asia-Pacific markets like India are reaping the benefits of AI-driven ad placements, boosting the region’s digital footprint.
EMEA: Steady Gains
Growth in EMEA is projected at 5.0%, fuelled by robust digital performance in key markets, particularly the UK, which is poised for a 5.7% increase in 2025 to reach US$51.7 billion.
Media Channels in Focus: Winners and Losers
While digital is on a meteoric rise, traditional media channels show mixed results:
Television: Marginal overall growth of 0.6%, with connected TV (+18.4%) offsetting broadcast declines (-2.5%).
Print: Continues its downward trajectory.
Cinema and OOH: Modest growth of 3.2% and 3.9%, respectively, reflects their recovery post-pandemic.
Sectoral Insights: Finance, Pharma, and Travel Shine
Sector-wise, the most significant ad spend increases in 2025 are expected in finance (+6.4%), pharmaceuticals (+5.8%), and travel/transport (+5.5%). These sectors are adapting to meet evolving consumer needs with targeted, data-driven campaigns.
The Algorithmic Era: Transforming Advertising
Dentsu’s forecasts spotlight the transition to an algorithmic era, with algorithmically enabled ad spend projected to grow from 59.5% of total ad spend in 2024 to a staggering 79% by 2027.
This shift underscores the critical role of AI-powered tools in shaping strategies that deliver measurable ROI and enhance consumer engagement.
As the advertising industry evolves, one thing is clear: leveraging data, algorithms, and digital innovation is no longer optional—it’s the driving force behind sustainable growth.
Brands that embrace these shifts are not just staying relevant; they’re shaping the future of marketing.
