Mumbai: Dentsu’s latest Global Ad Spend Forecasts project that global advertising spend will grow by 6.8% year-over-year in 2024, reaching $772.4 billion, with continued momentum expected into 2025. The forecast for 2025 predicts a growth of 5.9%, outpacing the global economy by 2.7 percentage points, as the advertising industry embraces algorithmically driven strategies and digital-first investments.
The upward revision of the 2024 growth forecast follows a return to double-digit growth (+10.7%) in digital ad spend, bolstered by the influence of sporting and political events, as well as a favourable outlook in key markets like the US, UK, Brazil, and France. This growth trend is expected to continue, driven by algorithmic advancements and a shift towards data-enabled media strategies.
“Our 2025 forecast underscores the pivotal role of media in today’s economy. Data-driven and digital-first media investment strategies continue to reshape how brands connect with consumers. The surge in algorithmic media capabilities will drive fresh opportunities for brands to engage meaningfully and effectively with existing and new customers,” said Will Swayne, Global Practice President – Media, dentsu.
The Americas is expected to lead in 2025 with a 6.3% growth, driven by sustained investments in digital and streaming in major markets like the US and Brazil.
Asia-Pacific is forecast to increase by 5.8%, with AI-driven ad placements playing a key role in boosting digital ad spend, particularly in rapidly growing markets such as India.
EMEA (Europe, Middle East, and Africa) is projected to grow by 5.0%, with strong digital performance across the UK and other key European markets.
The global advertising landscape is entering what dentsu has identified as the “algorithmic era,” with algorithmically enabled ad spend forecast to account for 59.5% of total ad spend in 2024 and to reach 79.0% by 2027. This shift reflects the increasing role of data-driven advertising strategies in shaping media investments.
Anita Kotwani, Chief Executive Officer – Media, South Asia, dentsu, added, “As digital channels continue to lead the way, the global advertising landscape is entering a new phase of growth and innovation. The projected 9.2% increase in digital ad spend for 2025, driven by segments like retail media and connected TV, underscores the immense value of data-driven strategies. As algorithmic media capabilities take center stage, brands have an unprecedented opportunity to connect with consumers in more personalized and meaningful ways. The future of advertising is not just digital – it’s deeply connected, data-empowered, and poised for transformative growth.”
According to the forecast, digital media will continue to be the fastest-growing advertising channel. In 2025, digital ad spend is projected to increase by 9.2%, reaching $513.0 billion, capturing 62.7% of global ad spend. Within digital, retail media is expected to see the most significant growth, with a year-over-year increase of 21.9%, driven by advertisers tapping into high-value retailer consumer data and expanding investments in offsite advertising, including connected TV.
Paid social is forecast to grow by 8.7% in 2025, supported by an integrated ecosystem blending shopping, video, search, and gaming capabilities. This channel is expected to remain critical for engaging younger audiences, particularly on platforms like Instagram, where 79.7% of Gen Z users are active monthly.
Paid Search is projected to grow by 6.7%, with continuous advancements in AI-powered features driving its relevance despite the rise of social and retail search. Online video advertising will also see growth, rising by 8.0%, as advertisers continue to seek high-attention, trusted environments.
Television ad spend is expected to show modest growth of 0.6% in 2025, with connected TV experiencing a sharp increase of 18.4%, driven by ad-supported streaming services. In contrast, broadcast television is predicted to decline by 2.5%. Print media continues to contract, while cinema and out-of-home (OOH) advertising are expected to grow by 3.2% and 3.9%, respectively.
Significant increases in ad spend are expected in sectors like finance (+6.4%), pharmaceutical (+5.8%), and travel and transport (+5.5%) as these industries adapt to shifting consumer demands and preferences.
Swayne concluded, “Media investment strategy is key to transformation and growth as brands keep pace with evolving consumer behaviours.”
For a detailed look at dentsu’s insights and data, download the full dentsu Global Ad Spend Forecasts report here.
