According to WARC’s latest forecasts, global advertising expenditure surpassed $1 trillion in 2024 for the first time. It is projected to grow by 10.7% this year, reaching $1.08 trillion. Over the past decade, ad spend has more than doubled, growing at 2.8 times the rate of global economic output since 2014, with an ever-expanding array of media channels now available to marketers.
The Future of Media 2025 report delves into how the growing variety of media options creates new opportunities for marketers to enhance effectiveness and drive growth. It highlights several key areas of transformation, including the impact of artificial intelligence (AI), the evolution of retail and social commerce, and the shifting landscape of search as platforms like social media increasingly rival traditional search engines.
Key Insights from The Future of Media 2025
1. Navigating Media Abundance
The vast choice of media channels today presents opportunities for brands to combine short- and long-term growth strategies. Advertisers must carefully plan campaigns that balance media quality, reach, and cost, tailoring approaches to their specific context and objectives.
Emerging platforms such as podcasts, gaming, and influencer-led channels are gaining traction. Brands are adapting to fleeting attention spans on these platforms by using micro-campaigns that work together to create lasting brand impressions. AI is also transforming campaign management, requiring advertisers to rely on algorithms and automation, even if it means sacrificing some control.
2. The Evolution of Search
This year, global spending on search advertising is expected to exceed $220 billion, with Google dominating over 80% of the market. However, younger audiences are increasingly using social media for brand discovery, shifting the nature of search from information-focused to intent-driven.
AI advancements are enabling search providers to interpret consumer intent more precisely, helping brands personalise communications and improve engagement. The rise of AI-driven search calls for new approaches to search engine optimisation (SEO), including emerging practices such as Large Language Model Optimisation (LLMO).
Advertisers will also need to diversify their search strategies to accommodate the fragmentation of search experiences across platforms like retail and social media.
3. Commerce Media’s Rapid Growth
Commerce media is becoming a cornerstone of the digital advertising ecosystem, with global retail media spending reaching $154.8 billion in 2024 and expected to grow by 14.8% in 2025. New commerce platforms are emerging, while social commerce continues its rapid expansion.
Retail media now supports the entire purchase journey, offering brand-building opportunities alongside performance marketing. However, advertisers face challenges such as platform fragmentation and a lack of standardisation, which may slow the adoption of newer platforms.
There is also a risk of brands reallocating budgets from traditional advertising to retail media, which could weaken brand equity while increasing performance marketing costs. Advertisers must adopt a balanced approach to safeguard their long-term growth.
Conclusion
The Future of Media 2025 is based on data and insights from WARC’s research, including a survey of over 1,000 marketing executives. It is part of WARC’s Evolution of Marketing programme, aimed at equipping marketers with tools and strategies to navigate major industry shifts effectively.
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