Why Ad Spend Optimization Is Critical For Modern Marketing Success

BY Kathy Crosett
dataongraphs

MediaRadar reports that media spending growth dropped from 7% in 2024 to 0.3% in 2025. Faced with tighter budgets and more scrutiny, your accounts may again hesitate to take big risks this year without clear evidence of ad spend optimization. In our most recent State of Media Sales survey, only 4% of media sales managers indicated a very optimistic outlook for 2026.

What do your accounts need to see before they buy more media?

It helps to review how media spending broke out last year. According to MediaRadar, here are the details:

  • Digital $182.1B
  • TV $59.1B
  • CTV $19.2B
  • Radio $8.0B
  • OOH $6.7B
  • Print $6.4B

Not all traditional media formats saw growth. In fact, traditional TV spending dropped 6.7%, while print saw a 20% decline.

Where did digital advertising struggle and what can sellers expect this year?

On the surface, the 2.6% increase for digital looks impressive. Some formats did very well. Marketers poured 9.9% more money into social. Online video scored an additional 6.7% and mobile web video also gained, with a 5.5% increase.

But not every digital channel gained in 2025. Digital formats that lost ad revenue, when compared to 2024, include search (-0.3%), mobile app (-3.4%) and browser display (-3.5%).

MediaRadar analyists point to the 0.4% drop in ad money for mobile web advertising. Overall, mobile web still commanded $11.1B in ad money last year. This shift indicates that demand for some “static placements” exists.

But the drop in mobile app spending points to another trend. Consumer attention is easier to capture if they don’t have to open an app to see a marketer’s message. When the message comes through a consumer’s feed, in the form of a video, results improve, along with ad spend optimization.

What to expect for traditional media

Depending on which traditional media format you’re selling, 2025 was likely a good year. AVOD captured $19.2B in ad money as the shift from linear TV continued and results will likely be similar this year.

Analysts note, “These channels [linear] are increasingly evaluated based on their ability to delivery incremental reach and efficiency.”

How does spending break out by vertical and season?

The MediaRadar analysis delves into seasonality of ad spending. This is an important detail to track as you plan your pitches. On the digital advertising front, noticeable dips occurred in March, July and October 2025. You can get more detailed information about seasonal highs and lows for over 400 industry verticals with a subscription to AdMall.

In our State of Media Sales Survey, 16% of managers reported that they expected a strong year for political ad sales. Home improvement services (15%) and health care services (11%) are other verticals where media sellers have the most optimism. If you haven’t approached local accounts in these verticals, now is the time.

How do marketers decide which media format to use?

In a new Verve study, marketers report that the following factors influence their media purchase decision. These factors all relate to quality in some way:

  • Reach in the right environment 60.5%
  • Brand safety 53.8%
  • Audience signals 49.5%

In addition, marketers look for high dwell time/​user engagement (44.5%). Be prepared to share this information as you put together your proposal. And as you shape your presentation and proposal, don’t be afraid to use AI. About 52% of broadcast TV sellers use AI for this purpose according to our research. The tool can help you improve your impact. 

What marketers want from CTV

The Verve study focused on CTV, where the quality aspect is particularly concerning. As you seek to sell your media format, especially CTV space, give prospects the data points they are looking for:

  • Clear audience validation methodology” 75.6%
  • Viewability benchmarks” 71.4%
  • Access to log-​level/​impression-​level reporting 63%

When marketers can’t get this level of detail, they may shift resources to other formats. For example, Rakuten TV Enterprise is reporting a marketer change in their Beyond the Break research. 70% of marketers plan to use more CTV with the pre-​roll and mid-​roll placements being coveted. But only a small number, 6%, say this placement is effective.

As advertisers look for a way to stand out, they are showing interest in home-​screen placements,  the type offered by Rakuten.

Why marketers are investing more in social media

With $65.5B now flowing into social formats, marketers believe they can connect with consumers throughout the sales funnel by using social media.

Going forward, analysts recommend a media mix that includes around a 36% digital allocation to social media. Describing search as a format that is “under pressure” they also suggest a bigger investment in video.

Ad spend optimization can be a challenging goal to achieve. But with the right tools and an updated and monitored plan, you can help your clients get there.

Image by Fauxels on Pexels.

Kathy Crosett Avatar

Kathy Crosett 

Senior Vice President of Research

Kathy Crosett, Senior Vice President of Research, has led quantitative research, analysis and editorial content for SalesFuel since 2001. She is also Publisher of the SalesFuel Today blog. Previously, Kathy was an analyst in health care marketing research. She holds an MBA from University of Vermont.

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