Ad spend growth is expected to grow at 5.9% in 2025, outpacing the global economy by 2.7%, as per the Dentsu Global Ad Spend Forecasts report.

The report also reveals that the growth will be led by the US market with 6.3% in 2025, followed by Asia-Pacific at 5.8%. Projected growth in EMEA countries is expected to be around 5%. 

Data-enabled advertising will increasingly shape media strategies, with algorithmically enabled ad spend forecasted to reach 79% of total ad spend by 2027, according to the report. 

Digital will be the fastest-growing channel with a projected increase of 9.2% in 2025 (8.8% three-year CAGR to 2027) to reach USD 513 billion and capture 62.7% of global ad spend.

It also cited that significant ad spend increases are anticipated in finance (+6.4%), pharmaceuticals (+5.8%), and travel and transport (+5.5%).

Key highlights from the report:

• Paid social is forecast to grow by 8.7% in 2025 (7.8% three-year CAGR to 2027), supported by an integrated ecosystem that blends shopping, video, search, and gaming capabilities. 
• Paid search is expected to increase by 6.7% in 2025 (6.5% three-year CAGR 2027), driven by continuous advancements in AI-powered features that sustain relevance amid the rise of social and retail search.
• Online video advertising is projected to rise by 8% as advertisers continue to seek out high attention and trusted environments. 
• Programmatic advertising is set to grow by 11.1% and will account for more than 70% of digital ad spend, with sustained momentum (10.9% three-year CAGR to 2027). 
• Television ad spend growth is forecast to show marginal growth of 0.6% in 2025, with connected television rapidly increasing (+18.4%) thanks to ad-supported streaming, and broadcast television declining (-2.5%).
• Cinema and out-of-home (OOH) advertising continue to grow by 3.2% and 3.9%, respectively.

Will Swayne, global practice president - media, dentsu, said, “Our 2025 forecast underscores the pivotal role of media in today’s economy. Data-driven and digital-first media investment strategies continue to reshape how brands connect with consumers. The surge in algorithmic media capabilities will drive fresh opportunities for brands to engage meaningfully and effectively with existing and new customers. Media investment strategy is key to transformation and growth as brands keep pace with evolving consumer behaviours.”

Anita Kotwani, chief executive officer – media, South Asia, dentsu added, “As digital channels continue to lead the way, the global advertising landscape is entering a new phase of growth and innovation. The projected 9.2% increase in digital ad spend for 2025, driven by segments like retail media and connected TV, underscores the immense value of data-driven strategies. As algorithmic media capabilities take centre stage, brands have an unprecedented opportunity to connect with consumers in more personalised and meaningful ways. The future of advertising is not just digital – it's deeply connected, data-empowered, and poised for transformative growth.”