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The global advertising industry is poised to reach $1.08 trillion in revenue in 2025, according to the "Mid-Year Global Advertising Forecast” report by WPP Media. Despite the impressive milestone, growth expectations have been revised downward due to ongoing geopolitical instability and disruptions in global trade.
Originally projected to grow at 7.7% in December 2024 forecast, global ad revenue is now expected to increase by 6.0% this year. The revision reflects cautious recalibration across markets facing economic uncertainty, supply chain pressures, and rising inflation.
Ad per the report, digital advertising continues to dominate the global landscape. Pure-play digital is projected to account for 73.2% of total ad revenue in 2025, and that figure climbs to 81.6% when factoring in digital extensions such as streaming TV, digital out-of-home (DOOH) and digital print.
In addition to this, search advertising remains a key growth engine within digital. Revenue from search, now increasingly referred to as Search (Intelligence) given the growing role of AI, is forecast to rise 7.3% to $226.2 billion in 2025. In contrast, audio advertising remains stagnant at $26.5 billion, with gains in streaming formats being offset by a 1.7% decline in terrestrial radio advertising.
All major advertising markets are expected to register growth in 2025, Brazil leads with 11.9% projected growth, followed by India 8.4%. China is set to grow 6.8% to $221.6 billion, maintaining its position as the world’s second-largest ad market. Meanwhile, United Kingdom is projected at $55.0 billion, growing at 6.5%, United States remains the largest global market, expected to grow 5.6% to $404.7 billion.
AI drives new efficiencies
Advertisers are aggressively turning to artificial intelligence to streamline both production and targeting. Tools ranging from generative AI and virtual assistants to immersive media are being explored to achieve cost efficiencies and boost performance metrics. However, the pace of AI adoption remains uneven, with debate continuing over timelines and long-term effectiveness.
Looking ahead, the report forecasts a 6.1% growth rate for 2026 and a compound annual growth rate (CAGR) of 5.4% from 2025 to 2030, down from the earlier 6.4% CAGR projected for the 2024–2029 period.