Dentsu Updates Global Advertising Spend Growth Forecast for 2025

Dentsu Updates Global Ad Spend Growth Forecast for 2025

Dentsu, a leading global advertising and communications group headquartered in Tokyo, has released its updated forecast for global advertising spend growth for 2025. The company projects a growth rate of 4.9%, amounting to approximately $992 billion. This growth is primarily fueled by the continually expanding digital advertising sector, despite the backdrop of an uncertain economic environment.

Global Advertising Spend Overview

According to Dentsu's analysis, the growth for 2025 is anticipated to be slightly less than the remarkable 6.7% growth expected in 2024, heavily influenced by significant events like the Paris Olympic and Paralympic Games and the United States presidential elections. Nevertheless, regional resilience and adaptability are expected to sustain this growth, which surpasses the global economic growth forecast of 2.8%. Digital advertising is predicted to experience an impressive 7.9% growth, making up 68.4% of total ad spend, which reflects a remarkable shift in advertising strategies.

Growth Metrics in Digital Advertising

Among the various sectors within digital advertising, retail media, social media, programmatic, and search advertising are foreseen to flourish at rates of 13.9%, 9.2%, 8.4%, and 8.3%, respectively. Moreover, algorithmic advertising, which tailors ads to consumer behavior and preferences, is becoming a critical tool for enhancing return on investment (ROI), projected to account for 78.1% of total advertising spend by 2027.

Regional Insights

Diving deeper into regional performance, the Asia-Pacific region, inclusive of Japan, is expected to witness a robust growth of 6.0%, reaching $361.5 billion—representing 36.4% of the global market. India is highlighted as the fastest growing market within APAC with a projected growth of 7.9%.

In the EMEA region (Europe, the Middle East, and Africa), a growth rate of 4.5% is on the horizon, estimated at $200.7 billion, with the UK leading the pack at 6.9%. Meanwhile, the Americas are set to grow by 4.2%, hitting $429.6 billion, buoyed notably by Brazil’s impressive growth rate of 7.1%.

Media Trends and Future Outlook

In terms of media types, connected TV advertising is forecasted to surge by 10.9%, owing to the rise of streaming platforms and an increase in user subscriptions. Conversely, traditional TV advertising may see a decline of 1.8%. Out-of-home (OOH) advertising is projected to grow by 2.7%, with digital OOH witnessing an increase of 4.2% against a modest growth of 2.0% for traditional formats.

Sector-Specific Growth Expectations

Various industry sectors are also set to highlight their advertising budgets. The telecommunications sector is estimated to grow by 8.3%, driven by the expansion of 5G networks, a growing need for high-speed internet, and increased digital content consumption. Similarly, the cosmetics and personal care sector is expected to rise by 7.3%, reflecting a surge in demand for skincare and wellness products along with growing interest in sustainability and natural materials.

Conclusion

Dentsu's comprehensive forecast is based on data collected from 56 global markets, integrating local insights for accuracy. While the prevailing economic uncertainties pose challenges, the adaptability and innovation within the advertising landscape are pivotal in navigating these complexities, fostering continued growth across various realms of advertising in the coming years.

For detailed insights, visit Dentsu’s official announcement.