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| Ad Spend at a Crossroads—2024’s Record Growth Meets 2025’s Uncertainty |
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| Digital ad revenue in the U.S. hit an all-time high of $259 billion in 2024—a 15% year-over-year surge and the fastest pace of growth since 2021. A combination of high-stakes events, including the U.S. Presidential Election and the Summer Olympics, drove advertiser demand and fueled major budget increases. Formats delivering both reach and engagement saw the biggest gains: Search continued to lead the pack, generating $102.9 billion and accounting for nearly 40% of all digital ad spend. Digital video was the standout, growing 19.2% year-over-year to $62.1 billion and capturing nearly a quarter of the market. Display followed with $74.3 billion (up 12.4%), while social media surged 36.7% to $88.7 billion—boosted by the boom in creator-led content. Retail media also maintained its momentum, climbing 23% to $53.7 billion as brands leaned heavily into first-party data and privacy-safe targeting. Podcasting made a strong comeback, growing 26.4% to reach $2.43 billion. One of the more surprising developments was the rise of mid-tier publishers. These media companies saw the fastest growth in market share, gaining over 3% as advertisers spread budgets beyond the top platforms in search of brand-safe, engaged audiences. “These midsized companies are adopting new business models, encouraging creator engagement, and leveraging AI and data-driven insights to offer more personalized, cost-effective advertising solutions,” said David Cohen, CEO, IAB. Looking Ahead: 2025’s Promise and Peril That’s 2024 in the books – so how’s 2025 looking? When Dentsu released its 2025 projections report at the end of 2024, the forecast painted an optimistic picture for global advertising this year, projecting a 5.9% increase in ad spend, with digital channels expected to grow even faster at 9.2% and capture over 62% of total budgets. But these projections came before Hurricane Trump. A wave of uncertainty introduced by the Trump Administration's fluctuating tariff proposals tempered this optimism. As advertisers and agencies gather for this year's upfronts, many find it challenging to make long-term commitments amid the unpredictability of new tariffs on China and other nations. “It’s really bananas going back and forth like this,” David Campanelli, president of global investment for the ad-buying firm Horizon Media, told the LA Times. “What we’re hearing from advertisers is that they are still waiting to understand the impact that tariffs will have on their business and how it will impact people’s willingness to pay more.” Brands are actively preparing best- and worst-case scenarios, wary of how increased costs and potential consumer pullbacks could impact ad performance and spending. For instance, Omnicom has trimmed its 2025 organic growth outlook, citing uncertainty from tariffs and macroeconomic pressures. It is now expecting 2.5–4.5% growth (down from earlier, more optimistic projections). Some analysts, like those at Moffett Nathanson, warn that a recession triggered by tariff-related economic shocks could reduce 2025 ad spending by as much as $45 billion, disproportionately affecting digital and TV budgets. And with the news of DOJ's Google ruling, who knows where ad revenue will sit by the end of the year. |
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| Monster Mashup |
| Balancing Revenue and UX: How Jasper Liu Fine-Tunes Yield at Daily Mail Jasper Liu landed an entry-level analyst position at the Daily Mail in 2022 and he’s leveled up to a senior analyst role shaping the publisher’s programmatic strategy. Read more. Adapting to the Zero-Click Era: How Publishers and Ad Tech Must Evolve Generative AI is quickly becoming the way people search, discover and shop. More platforms now offer end-to-end customer journeys that start with a question and end with a purchase, no clicks required. Read more. Reimagining Identity With AI At The Core From automating workflows to revolutionizing creative processes, AI is setting new standards across sectors. Identity and addressability is the newest frontier. Read more. Zero-Click Search Is Quietly Dismantling the Economics of Niche Publishing As a niche publisher, Austin Historical, a site dedicated to restoring old homes, is feeling the impact of zero click search on his ad revenue and referral traffic. Read more. |
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