Global advertising expenditure has reached a landmark milestone, surpassing $1 trillion in 2024, according to WARC’s latest forecast. The industry is expected to grow by 10.7% this year, hitting $1.08 trillion. This marks a dramatic increase, with ad spend more than doubling over the past decade. Since 2014, the growth rate of advertising expenditure has outpaced global economic output by 2.8 times, the report added. WARC’s Future of Media 2025 report highlights the expanding media landscape and the new opportunities it creates for marketers aiming to drive growth and improve effectiveness. Among the key shifts identified in the report are the rise of artificial intelligence (AI) in advertising, the rapid evolution of retail and social commerce, and the changing dynamics of search platforms as social media continues to challenge traditional search engines.
Search advertising is experiencing significant changes. This year, global spending in search is set to surpass $220 billion, with Google maintaining its dominance over the market. However, younger generations are increasingly turning to social media for brand discovery, shifting the focus of search from traditional information-seeking to intent-based queries. AI advancements are enabling more accurate interpretation of consumer intent, which will allow brands to personalise communication and drive greater engagement. As social and retail platforms continue to fragment the search experience, advertisers will need to rethink their SEO strategies and explore emerging practices like Large Language Model Optimisation (LLMO) to stay competitive.
Commerce media is emerging as a key pillar of the digital advertising ecosystem, with retail media spending set to reach $154.8 billion in 2024 and grow by 14.8% in 2025. The continued rise of social commerce and the expansion of new commerce platforms present brands with new opportunities for both brand-building and performance marketing. However, challenges remain, such as platform fragmentation and a lack of standardisation, which may slow the adoption of newer platforms.