WARC is reporting that global ad spend surpassed $1 trillion for the first time in 2024, and is expected to grow by 10.7% this year to $1.08 trillion. The company said that global ad spend has more than doubled in the last decade, growing 2.8 times faster than global economic output since 2014, with more media channels available to marketers than ever before.
The data comes from WARC’s latest report, “The Future of Media 2025,” which highlights trends in media planning, advertising investments and the media ecosystem.
According to the report, marketing executives expect media channel investment to shift this year, with spending in online video increasing by 65%; social media by 55%; influencer marketing by 50%; online search by 39%; mobile by 37%; podcasts by 36%; retail media by 32%; gaming by 24%; online display by 21%; and OOH by 10%. Experts also predict that radio (excluding podcasts) and mail investment will both fall by 8%. Spend on TV and cinemas will plummet by 17% each, while print will fall by 42%.
Looking ahead to the trends that will shape this year, WARC said influencers, podcasts, and games will continue to emerge as new brand-building tactics, with spend and sentiment moving to channels such as social media. Therefore, advertisers will have to adapt their campaigns to algorithm preferences not only on social media, but also on search. This may mean adopting new methods and processes, or relying more on AI systems to automate parts of campaign management, according to WARC.
According to its forecast, more than $220 billion will be spent on generic searches worldwide this year, with Google taking more than 80% of the share. However, social networks are competing with Google as the preferred search platforms for young people to discover brands.
WARC said that advances in AI are driving traditional search providers and new entrants to compete in identifying consumer intent in more detail. Access to this information should help brands gain a better understanding of audience behaviours, resulting in more personalized and relevant communications. But AI-driven search requires a rethinking of SEO – WARC says brands will need to optimize their messaging and content to ensure visibility and favourable representation in AI-driven search results.
The report also shows that new commercial media platforms are launching, and social commerce is growing rapidly. Retail media is expanding, reaching $154.8 billion in global ad spend by 2024, with a further 14.8% increase expected this year. According to WARC, commerce media is underpinning the entire digital advertising ecosystem, offering potential for brand building.
“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. New entrants may struggle to win spend from incumbents,” said WARC. The company also noted that retail spending can put brands’ budgets at risk: “Many advertisers appear to be divesting from traditional advertising channels to spend more on lower-funnel ads on retail media networks. Advertisers should protect traditional advertising budgets to avoid falling into a vicious cycle of weakening their brand, while raising the cost of driving performance on retail media properties.”
The report is based on WARC data and insights, including WARC’s global Marketer’s Toolkit survey with more than 1,000 marketing executives, and external research. It is part of WARC’s Evolution of Marketing program, which helps marketers address major industry changes.
