As new economic policies take shape in 2025, consumers are growing cautious about spending. New advertisement spending forecasting for 2025 indicates a likely pullback by marketers. You can boost sales from your accounts by recommending the right ad campaigns in the right formats.

2025 Outlook

New advertisement spending forecasting for 2025 was issued by major industry watchers last week. Magna expects a 6.7% growth rate over last year, excluding cyclical spending on events such as the Olympics or politics. This projection is down from the previously anticipated 7.3% rate.

Brian Wieser, Madison & Wall, cautioned that media companies will face increased pressure this year. Advertisers are increasingly fixed on short term goals. This fixation is not surprising as economic policy set in Washington continues to shift.

The changes caused Wieser to adjust his predictions. In his forecast, Wieser expects a 3.6% ad spending increase this year instead of the 4.5% growth rate he projected earlier. 

Another media industry powerhouse, WARC, predicts global media spending will increase by 6.7% this year. WARC expects a 10.1% increase in pureplay internet ad spending and a 5.1% jump in OOH and cinema, globally.

Traditional Media

Using MAGNA’s numbers for advertisement spending forecasting, we can see that some media formats will fare better than others. Local TV spending, excluding cyclical, is now likely to drop by 3.7% instead of the previously noted 3.4%. Similarly, radio ad revenue which came in at $12.6 billion in 2024, will drop by 3.2%. Publishers, with a 2024 ad spending amount of $15.2 billion, will bring in 2% less this year.

The out-​of-​home sector, on the other hand, will generate an additional 4.4% in revenue which will bring the 2024 level of $9.7 billion to $10.13 billion.

While linear TV will likely fall by 5.9%, streaming TV ad revenue will jump 14.3%. That’s only a little lower than the previously projected 15.9%.

Digital Media

Total digital pureplay ad spending in 2024 amounted to $269.6 billion, without cyclical spending. This year, revised advertisement spending forecasting suggests these businesses will earn an additional 9.6%.

According to MAGNA, the increases by digital format will be as follows:

• Social media 10.7%
• Core search 7.6%
• Retail search 14.3%
• Short form video 8.6%
• Digital audio 3.7%

Vertical Outlook

The strong 2024 ad growth, outside of the usual cyclical events, may not be repeated in 2025. Analysts points to the looming trade war which will pressure marketing budgets. And if CPG companies are forced to raise prices, they may cut their ad budgets to protect profit margins.

On a positive note, analysts believe some industries will continue to invest in advertising. Specifically, pharmaceuticals, entertainment and finance and insurance businesses will drive ad demand.

Automotive Industry Impact

In their study of the market, WARC analysts emphasized that automotive is one sector that will feel the impact of economic change. They project a 7.4% drop in automotive ad sector spending in 2025. Manufacturers may not produce as many vehicles as a result of potential tariffs. If your local auto dealers are trying to reduce their schedule with you, encourage  them to shift their promotional advertising to their service department to increase business.

WARC analysts also expect lower advertising in the retail, tech and electronic verticals. Why? Because the materials needed to assemble the final products are likely to be subject to tariffs. And the additional costs may lower consumer demand.

SMB Outlook

Analysts also noted that small businesses are finding it easier to use AI-​based tools to run ad campaigns on social media platforms. That may be true. And it’s a good reason to check in with your local accounts if you’re selling digital marketing services.

You may be able to pitch them on your expertise with the new tools. You should also run a Digital Audit for them. This tool, available with a subscription from AdMall, allows you to show them how well they are doing in terms of their digital outreach.

Don’t let your accounts cut spending because of the changes in advertisement spending forecasting. Remind them that staying visible to their target audience will boost revenue.

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