Global advertising revenue to grow 8.8% in 2025, APAC second largest

The global advertising revenue is expected to grow by 8.8% in 2025, reaching US$1.14 trillion, with a 7.1% growth projected for 2026, according to a report by WPP.

Titled “This year next year”, the 2025 end-of-year advertising forecast aims to provide a fresh perspective on how global trends in culture, commerce, government, and technology are shaping the industry and what this means for marketers in the months and years ahead.

The report focuses on media owner revenue, tracking top sellers across over 60 markets. The top 350 advertisers account for less than a quarter of total industry revenue, while the top 25 media sellers represent over 70%. The methodology evaluates economic factors and channel-level revenue for a precise advertising forecast.

The global economy has stabilised despite US tariffs, with the International Monetary Fund (IMF) projecting GDP growth of 7.4% in 2025 and 6.8% in 2026. Inflation is estimated at 4.2% in 2025, decreasing to 3.7% in 2026. Key drivers of this improvement include the reduced impact of tariffs and the AI investment boom. Consequently, WPP now expects ad revenue growth of 8.8% in 2025, up from 7.7% predicted in December 2024.

Regional advertising revenue forecasts

Following Latin America, APAC is the second-largest region for advertising, accounting for 31.6% of global revenue and featuring four of the top 10 markets: China, Japan, India, and Australia. Ad revenue is projected to grow by 6.4% in 2025 to US$361.8 billion, followed by 6.6% in 2026, stabilising around 5% growth through 2030.

While geopolitical tensions may pose challenges, reduced tariff impacts and rising consumer confidence, along with new AI-driven businesses, could further boost growth. China’s advancements in AI and robotics are expected to create opportunities first in Asia before expanding to Europe or North America.

North America's total advertising is projected to grow by 12.3% in 2025, reaching US$452.9 billion, with further growth of 7.5% anticipated in 2026. Meanwhile, the advertising market in the Middle East and Africa is expected to grow by 6.9% in 2025, reaching US$21.6 billion, followed by a 7.4% increase in 2026. 

The European advertising market is also set for robust growth, projected to expand by 5.8% in 2025 to US$257.6 billion, with an additional 5.5% increase expected in 2026.

Media forecast

The media forecast is divided into four main segments reflecting clients' motivations for allocating their media budgets. The largest segment, content-driven advertising, is expected to account for 58% of total ad revenue in 2025, decreasing to 55.1% by 2030. This segment includes forecasts for TV, audio, newspapers, magazines, social media, and gaming.

Social and digital platforms represent the primary growth engine for content-driven advertising, reaching US$413 billion in 2025 (+12.8%) before advancing to US$445.4 billion in 2026 (+7.8%). Gaming is the fastest-growing content advertising channel, projected to reach US$8.5 billion in 2025 (+29.5%) and US$10.7 billion in 2026 (+25.6%), though it will account for only 0.7% of total ad revenue in 2025, rising to 0.9% in 2026.

Meanwhile, traditional linear channels continue to face structural declines, with magazine advertising experiencing the steepest drop in the content sector, projected to fall by 7.2% to US$15.6 billion in 2025, and a further 10.7% decline to US$14 billion in 2026.

The next largest component, accounting for 21.4% in 2025, is intelligence—primarily derived from search ad revenue but expanding to include ad revenue from AI platforms. Meanwhile, commerce is expected to account for 15.6% of total global ad revenue in 2025, reaching US$178.2 billion and surpassing total TV ad revenue for the first time.

Commerce is projected to account for 15.6% of global ad revenue in 2025, reaching US$178.2 billion and surpassing TV ad revenue for the first time. This reflects the transition of commerce media from an experimental channel to a key component for many advertisers. Growth is expected at 11.6% in 2025, slowing to high single digits through 2030, when the segment may reach US$268.3 billion (17.2% of total ad revenue).

Finally, location-based advertising, comprising out-of-home (OOH) and cinema, is expected to grow 6.3% in 2025 to reach US$56.9 billion globally. This category continues to demonstrate resilience relative to other traditional media, with OOH maintaining its share of total advertising at 4.8% in 2025 and projected to remain stable at between 4.6% and 4.8% through 2030.

Category trends

In addition to tracking the financials of the world’s leading advertising sellers, the report also maintains composites of the largest global advertisers across nine categories: consumer packaged goods (CPG), retail, media and entertainment, technology, financial services, automotive, pharmaceuticals, luxury, and business-to-business (B2B).

The CPG advertising landscape is set to enter a more normalised phase of growth in 2026 following years of pandemic-driven volatility and inflation-driven margin pressure. For CPG companies excluding alcoholic beverages, the 2024 median advertising as a percentage of revenue stood at 7.8%. WPP expects the 2025 advertising ratio to be slightly lower as companies adapt to tariffs, input cost pressures, and some consumer weakness in key markets. 

In terms of media, total advertising spend is estimated to grow 8.3% in 2025, with an additional 9.9% increase anticipated in 2026. The median advertising share of total revenue is expected to be broadly similar at 4.6%. 

However, retailers face a challenging environment with tariff-driven pricing pressures, increased competition from smaller players, and the balance between short-term sales and long-term brand building. Holiday sales forecasts are mixed, as consumers expect higher prices due to inflation but remain open to promotions. Retailers are prioritising omnichannel strategies to engage customers at all touchpoints and are increasingly focusing on brand heritage through anniversary campaigns and archival creative. While digital channels are key, retailers are also expanding their evaluation of social platforms beyond the largest media owners.

Advertising growth in the media and entertainment category is forecast to be 2.6% in 2025 and 6.3% in 2026. This is projected to outpace overall category revenue growth in 2025 (+1.8%) and match it in 2026 (+6.3%).

The technology category composite includes hardware-focused companies such as HP, Xiaomi, LG, Samsung, Apple, Lenovo, Dell, and Nintendo. Median advertising as a percentage of revenue was 1.8% in 2024, down from 1.9% in 2023. Overall advertising expenses increased by 3% in 2024, with anticipated rises of 9.9% in 2025 and 7.6% in 2026, while advertising's share of revenue remains stable.

The financial services composite, which includes banks, insurance providers, fintech platforms, and payment companies, is expected to see advertising spend grow by 11.2% in 2025 and an additional 9.3% in 2026. Without fintechs, growth will be more moderate at 10.2% in 2025 and 8.3% in 2026. Fintechs are projected to outpace traditional companies in spending and advertising intensity, reshaping the competitive landscape and prompting legacy players to rethink their customer acquisition and brand strategies.

Within the luxury composite, WPP estimates advertising expense to decline by 1.1% in 2025 but grow by 2.3% in 2026. Despite the overall decline in the fiscal year 2025 forecast, five out of eight tracked companies are expected to increase their advertising spend. Advertising investment has continued to grow for the two of the three companies reporting fiscal year ends in March and June of 2025. The median advertising share of total revenue is expected to be broadly similar at 9.8%, with advertising expenses growing broadly in line with total revenue growth.

Meanwhile, B2B advertising expenses are expected to grow by 12.5% in 2025, though this figure masks varying trends across subsegments. Software and SaaS advertisers are likely to increase investment due to AI-driven innovation creating competitive advantages. In contrast, professional services firms may face constrained budgets from longer sales cycles and increased procurement scrutiny, despite strong demand for AI consulting. Industrial advertisers will confront headwinds from potential tariffs and manufacturing uncertainty, likely resulting in stable or slightly reduced advertising intensity.

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