Global advertising revenue continues to grow despite economic uncertainty and a slowdown in traditional media sectors. Magna’s latest forecast projects media owners’ ad revenues will reach $979 billion by 2025, marking a 4.9% increase over 2024.
Search and retail media are key drivers behind this growth, expected to rise 8% to $359 billion. According to Vincent Létang, EVP of global market intelligence at Magna, retail media strengthens the advertising ecosystem by introducing new digital formats, including short-form video and digital out-of-home, rather than merely shifting budgets from declining channels.
Traditional media sectors like radio and publishing face a 3% revenue decline in 2025, partly due to the absence of major events such as US elections and the Olympics. Even with adjustments, these areas show little to no growth amid current economic conditions.
The International Monetary Fund (IMF) has lowered its global growth forecast for 2025 from 3.3% to 2.8%, citing significant policy changes. This slowdown impacts countries differently; Canada, Mexico, and Japan, heavily reliant on US exports, are expected to be more affected compared to the US itself.
The automotive sector remains uncertain. After a brief surge in early 2024 driven by anticipated price hikes, growth flattened by May. Magna anticipates a 2% global decline in automotive ad spend in 2025, with a 3% decrease specifically in the US. Ongoing trade policies may push prices higher, despite manufacturer promises to maintain current pricing, which remain uncertain.