The global advertising market seems to be running ahead of the economy, with a projected growth of 6.8% in 2024, closing the year at $772.4 billion, as per Dentsu’s Global Ad Spend Forecasts report. The momentum isn’t slowing down, with a further 5.9% increase expected in 2025, as algorithm-driven strategies take the wheel, reshaping media investments and consumer targeting. For an industry fueled by trends, it appears algorithms have become the trendsetters.
Reportedly, digital advertising is leading the charge, poised to account for 62.7% of global ad spend by 2027. Retail media, a hotbed of advertiser interest, is expected to grow by 21.9% annually, reflecting brands’ growing appetite for leveraging retailer data and experimenting with offsite advertising through connected TV. The shift toward digital is also evident in programmatic advertising, projected to grow by 11.1% in 2025, with programmatic buys dominating digital ad spend by 2027.
“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,” Will Swayne, Global Practice President – Media, dentsu, said.
The Americas are set to outpace other regions, with a robust 6.3% growth in 2025, fueled by sustained investments in digital and streaming in markets like the US and Brazil. In the Asia-Pacific, a 5.8% increase is predicted, with India’s rapid adoption of AI-enabled ad placements contributing to the region’s performance. Meanwhile, the EMEA region is expected to grow by 5.0%, thanks to the consistent strength of digital in countries like the UK.
Interestingly, connected TV is turning traditional television’s fate on its head, with an 18.4% rise in ad spend as viewers increasingly stream their favourites on ad-supported platforms. Traditional broadcast TV, however, faces a decline of 2.5%. Cinema and out-of-home advertising are also making a quiet comeback, growing by 3.2% and 3.9%, respectively.
Sector-specific ad spends offer more insights into shifting consumer behaviour. Finance, pharmaceuticals, and travel lead the pack, with increases of 6.4%, 5.8%, and 5.5%, respectively. Brands in these sectors seem to be doubling down on connecting with audiences eager for stability, wellness, and adventure.
“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.”Anita Kotwani, Chief Executive Officer – Media, South Asia, dentsu said.
As the industry marches into what dentsu terms the “algorithmic era,” one thing is clear: advertising is no longer just about creativity and storytelling. It’s increasingly about who can wield data and AI better, ensuring every dollar finds its way to the most receptive eyeballs. And with algorithmically enabled advertising projected to make up 79% of global ad spend by 2027, there’s little doubt about the direction the industry is heading—straight into the heart of precision marketing.
