MUMBAI: Advertisers, marketers and media establishments around the globe can bring out the bubbly. dentsu’s latest Global Ad Spend Forecasts has revealed a projected buoyant 6.8 per cent growth in global advertising spend for 2024, reaching $772.4 billion. This growth projection has been revised upwards following the return to double-digit growth (+10.7per cent) of digital ad spend, the impact of sporting, political events and improved outlooks across the US, UK, Brazil & France. 
 
The American region is expected to lead in 2025 with 6.3 per cent growth, driven by rich US and Brazilian markets where digital and streaming see sustained investments. The Asia-Pacific market is forecast to increase by 5.8 per cent, with AI-driven ad placements contributing to the increase in digital ad spend in markets like India. Lastly EMEA (Europe, the Middle East and Africa) has projected growth of five per cent, with strong digital performance in key markets including the UK. As the industry enters what dentsu identifies as the algorithmic era, data-enabled advertising will increasingly shape media strategies, with algorithmically enabled ad spend forecast to reach 79.0 per cent of total ad spend by 2027. 

Artificial intelligence (AI) is no longer confined to experimental phases. It has become an integral tool for creating personalised, one-to-one consumer experiences. Generative AI applications like OpenAI’s GPT models are embedding themselves in everyday services, from Duolingo’s AI-driven tutor to Spotify’s personalised AI DJ. These advancements mark a new era of micro-moments that enhance user engagement by delivering tailored interactions at scale.

As algorithms increasingly gatekeep content visibility, brands are tapping into niche communities and fandoms to drive meaningful connections. Influencers, from content creators like Mr Beast to hyper-localised niche experts, are key to cutting through the digital noise. Additionally, connected television’s growing reach provides fertile ground for cross-platform storytelling, combining scale with intimacy. Paid social is forecast to grow by 8.7 per cent in 2025 (7.8 per cent three-year CAGR to 2027), supported by an integrated ecosystem that blends shopping, video, search, and gaming capabilities. This channel remains critical for engaging younger audiences, with 79.7 per cent of gen Z using Instagram monthly and 42 per cent of CMOs planning to boost influencer marketing investments. Paid search is expected to increase by 6.7 per cent (6.5 per cent three-year CAGR 2027), driven by continuous advancements in AI-powered features that sustain relevance amid the rise of social and retail search.

Retailers are stepping beyond traditional advertising, transforming their platforms into data-rich media ecosystems. Amazon leads this charge with a $50 billion ad revenue engine, while others like Walmart and TikTok are innovating through acquisitions and self-serve advertising solutions. This convergence is reshaping how brands measure success and optimize campaigns, fostering a holistic view of the consumer journey. From a media channel standpoint, the report highlighted that digital is expected to remain the fastest-growing channel, with a projected increase of 9.2 per cent in 2025 (8.8 per cent three-year CAGR to 2027) to reach $513.0 billion and capture 62.7 per cent of global ad spend. Significant growth is anticipated across key digital segments, with retail media leading the way at +21.9 per cent year-over-year (19.7 per cent three-year CAGR to 2027) as advertisers capitalise on the high value of retailer consumer data and increasingly invest in offsite advertising, including connected TV. 

In a world flooded with content, quality emerges as a non-negotiable factor. Advertisers are increasingly prioritising transparent, sustainable programmatic supply chains and investing in impactful creatives to capture attention in crowded digital environments. 

Attention metrics, such as "attentive seconds," are now as critical as traditional ROI measurements, signaling a shift towards more meaningful audience engagement. Online video advertising is projected to rise by 8.0 per cent as advertisers continue to seek out high attention and trusted environments. Programmatic advertising is set to grow by 11.1 per cent and will account for more than 70 per cent of digital ad spend, with sustained momentum (10.9 per cent three-year CAGR to 2027). 

Television ad spend growth is forecast to show marginal growth of 0.6 per cent in 2025, with connected television rapidly increasing (+18.4 per cent) thanks to ad-supported streaming, and broadcast television declining (-2.5 per cent). Meanwhile, print media continues to contract, while cinema and out-of-home (OOH) advertising continue to grow by 3.2 per cent and 3.9 per cent, respectively. 
 
Significant ad spend increases are anticipated in finance (+6.4 per cent), pharmaceutical (+5.8 per cent), and travel and transport (+5.5 per cent) as these sectors adapt to meet evolving consumer needs. 

Says dentsu's global practice president- media Will Swayne: “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.Media investment strategy is key to transformation and growth as brands keep pace with evolving consumer behaviors.

“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 per cent 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 center 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,” added dentsu chief executive officer – media South Asia Anita Kotwani.

Despite technology’s global proliferation, access remains uneven. From regulatory hurdles to the high costs of advanced AI features, digital divides are becoming more pronounced. Brands must adopt nuanced, locally informed strategies to ensure inclusivity while navigating fragmented markets.

The algorithmic era promises opportunities for innovation in media and marketing. However, success will hinge on a brand’s ability to adapt to evolving consumer behaviors, leverage cutting-edge AI tools, and balance global aspirations with local sensitivities.

This year of impact calls for brands to be bold, innovative, and deeply attuned to the digital zeitgeist. The possibilities are infinite, but the imperative is clear: in 2025, making an impact is not optional—it’s the only way forward.

(Picture generated using Dall-E 3 generative AI tool)