Credit: Eric Prouzet via Unsplash
WPP media has, in the face of economic uncertainty, downgraded its 2025 global ad spend forecast to 6% growth from the 7.7% predicted in December 2024.
The Mid-Year Global Advertising Forecast for 2025 cites disruptions to trade and continued de-globalisation pressures weighing on advertising investment.
However, for Australia, WPP Media’s analysts see 4.1% growth, higher than the 3.7% predicted in December.
WPP Media expects global advertising revenue to hit $US1.08 trillion in 2025, with growth of 6.1% projected for 2026.
The compound annual growth rate (CAGR) is predicted to be 5.4% between 2025 and 2030, lower than the previously projected 6.4%.
“Advertisers are increasingly leaning into AI experimentation in production and targeting, seeking cost savings and performance optimisation,” WPP Media said.
“Economic pressure is accelerating this trend, though opinions vary on the timeline for adoption of tools such as generative AI, virtual assistants, and immersive tech.”
Digital advertising continues to dominate, with pure-play digital expected to account for 73.2% of global ad revenue in 2025, rising to 81.6% when including digital extensions such as streaming TV, DOOH, and digital print.
Retail media is one of the fastest-growing segments, projected to hit $169.6 billion globally in 2025 and grow to $252.1 billion by 2030, making up 18% of all ad revenue by decade’s end.
User-generated content is overtaking professional production. In 2025, more than half of content-driven advertising revenue will come from platforms such as TikTok, YouTube, Kuaishou and Instagram Reels.
Creator-generated revenue will rise 20% to $184.9 billion this year and is expected to more than double to $376.6 billion by 2030.
TV (including streaming) is projected to grow just 1% to $162.5 billion in 2025, with streaming TV contributing $41.8 billion and expected to grow rapidly to $71.9 billion by 2030.
Out-of-home (OOH) advertising remains stable, with digital OOH (DOOH) comprising 41% of the $52 billion OOH market in 2025.
Print advertising continues its decline, forecast to fall 3.1% in 2025 to $45.5 billion.
Audio advertising is flat at $26.5 billion, as growth in streaming is offset by a 1.7% fall in terrestrial formats.
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