
As you pitch your accounts, do you know what they want from their media investment? The IAB asked that question in its 2025 Outlook Study. The participants’ responses in this study can help you plan how to approach accounts this year.
Specifically, you need to address the following issues:
- How much will media spending increase this year?
- What do accounts want to achieve through their media buying?
- How will accounts incorporate AI into their media buying process?
How much will media spending increase this year?
In 2025, the IAB anticipates the fastest growing media formats will be CTV and social media. At this point, an overall growth rate of 7.3% in media spend is projected by the IAB. The number includes both digital and traditional media sales.
Digital Media Outlook
IAB analysts, like many others, anticipate double digit growth in the following digital media formats:
- CTV
- Social media
- Digital video (excluding CTV)
- Paid search
- Podcasts
Other digital media formats are likely turn in a respectable growth rate. Digital ‑out-of-home advertising is projected to achieve 8.9% higher sales than in 2024. Digital display will increase sales by 7.4%, a big increase over the 4.4% boost recorded in 2024.
It’s worth noting that digital media formats continue to dominate the industry. Here are the anticipated levels of market share that specific formats will hold by the end of year:
- Digital video (with CTV/OTT) 23.2%
- Social media 17.2%
- Paid search 15.6%
- Digital display 12.8%
Traditional Media Outlook
Linear TV may grow by nearly 4%. Keep in mind that linear TV had a superb 2024. But the special events that drove spending – politics and the Olympics – will not be duplicated this year. Look for other traditional media formats such as radio, print, out-of-home, and direct mail to fall by 2.9%.
Meanwhile, linear TV captures 13.7% of spending while other traditional media share 5.9% of the outlay by advertisers.
What Do Accounts Want to Achieve Through Their Media Investments?
Your accounts have multiple goals when it comes to their media spending. According to the IAB research, the top interests are:
- New customers 62%
- Increased brand equity 42%
- Better media efficiency 39%
New customers
It’s no secret that profit margins have been squeezed in the years following the COVID-19 pandemic. Between supply shortages and ever-present inflation, every business owner is looking for a way to improve. Adding new customers is one of the fastest ways to bring in more revenue.
Performance versus brand advertising
Everyone from CEOs to CMOs are likely feeling the pressure to improve the bottom line quickly. This year, 54% of surveyed businesses will spend more on performance ads. That type of advertising typically drives more immediate spending.
On the other hand, only around 20% of marketers will increase their brand advertising.
Efficiency
As brands monitor their spending and ROI, they’ll be measuring their investments through multiple lenses. For example, they continue to seek ways to measure cross-channel media campaigns (46%). And they are always thinking about reach and frequency (36%).
But 32% also want to focus on evolving consumer habits. You can share the latest AudienceSCAN data with them when you have an AdMall subscription. The resource will show the media formats that consumers use, along with their purchase intent.
This year, 55% of marketers will be buying ads in publications that have first-party data. Behavioral ads will top the agenda for 46% of marketers. With cookie technology remaining in place, these personalized ads are based on a consumer’s web activity.
How Will Accounts Use AI in Their Media-Buying Process?
As you pitch your media space to agencies, be aware of their Gen AI expectations and use levels. Around 42% of these organizations are already applying the technology to their media investment and activation process. Another 36% are exploring how to make this technology work for them.
These numbers sound impressive. But most agencies aren’t ready to let AI take over. Over half of users have set “mandatory human oversight of outputs” in place. They are also monitoring regulations to ensure that they are in compliance.
It’s worth looking at how your accounts may be using AI as well. For now, only 32% have “organized, collaborative resources.” And 19% report that they only have group subscriptions to these tools.
Keep in mind that Viamedia TV analysts expect AI-generated content such as video to become popular. If you are developing that kind of content in ad formats for your clients, you may jump ahead of the competition. Your accounts have multiple expectations for their media investment. Work with them to optimize their spending and your revenue.
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