U.S. digital advertising will see a 7.3% increase over last year’s spend, according to the newest IAB forecast. This growth is notably lower than the 11.8% 2024 projection.
Retail media networks (up 15.6% year-over-year) CTV (+13.8%) and social media (+11.9%) all expect double-digit growth, according to the study, “2025 Outlook: A Snapshot into Ad Spend, Opportunities and Strategies for Growth.”
Slowdown. The study indicated that 2024 accelerated on ad-heavy events just like the Paris Olympics and national and state elections.
This year, advertisers shall be more selective, specializing in emerging high-growth channels like RMNs and CTV.
“This report clearly shows that budgets are being focused at points where consumers, commerce and video converge — where advertisers can leverage the ability of sight, sound, and motion and consumers can engage and transact,” said IAB CEO David Cohen in a release.
Growth by channel. Indeed, the highest-growth channels within the 2025 projections deliver video and full-funnel opportunities from branding to commerce.
Dig deeper: Social media and influencers: 2025 predictions
Here is a breakdown of growth by channel.
Dig deeper: Retail media networks proceed to grow: 2025 predictions
Priorities for advertisers. Performance-driven media and measurement and attribution capabilities are top priorities for advertisers, according to Mediaocean’s 2025 Advertising Outlook Report.
Sixty-two percent of marketers said performance-driven paid media was most crucial to their plans. Coming in second, measurement and attribution was critical to 50% of marketers.
Brand advertising got here in third at 45%, down from 57% in a previous study conducted in summer 2024. (The most up-to-date study asked marketers these same questions in November, 2024.)
GenAI-powered media planning. Marketers are adopting genAI tools to help with media planning, the IAB study found. A full 42% are currently using this technology for media planning and/or activation. Another 36% are exploring the technology.
Mediaocean found genAI an important trend marketers are watching in 2025. Here are the highest ways marketers within the study are using genAI:
- Data evaluation (47%).
- Market research (38%).
- Copywriting (32%).
- Image generation (22%).
- Customer service (14%).
Why we care. It’s comprehensible expectations could be lower following a boom year in 2024. Due to immense competition, marketers are pursuing digital ad channels on the innovative of consumer engagement. As a result, traditional media like linear TV will see lower, or negative, growth — although they continue to be a crucial a part of a full media plan moving forward.
More concerning the IAB study will be found here. (Membership required to access the complete report.)
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