Total advertising expenditure

Total advertising expenditure is estimated to reach $353.9 billion in 2025, representing a 1.2% increase from the previous year. Growth in the current year has remained modest, primarily due to persistent economic headwinds. Corporate advertising budgets have remained constrained after several years of elevated inflation and sustained high interest rates, both of which have limited consumer spending and, by extension, companies' willingness to invest in advertising. The gradual stabilization of the broader economy has contributed to continued, but subdued, growth in advertising expenditure, as businesses remain cautious in their approach to marketing outlays.

From 2020 to 2025, annual advertising expenditure increased at an average annualized rate of 1.6%. The industry began this period rebounding from the 5.4% decline recorded in 2020, which resulted from widespread economic shutdowns and decreased consumer activity linked to the COVID-19 pandemic. Advertising spending returned to growth in 2021 and 2022 as economic activity resumed and consumer confidence improved. However, as inflation accelerated and central banks responded with interest rate hikes, consumer spending slowed, tempering growth in advertising budgets during 2023 and 2024. Elevated borrowing costs and reduced discretionary spending contributed to increased caution among corporate decision-makers, reinforcing limits on major marketing activities. Shifts in advertising allocation also continued to reshape the market: declining expenditure on traditional channels such as print, newspapers, and network television was offset by rising internet ad spending, reflecting businesses' preference for data-driven targeting and cost effectiveness offered by digital platforms rather than traditional media. Audience fragmentation, particularly in television, challenged advertisers seeking large, unified audiences, leading to further shifts toward digital and streaming media. Overall, macroeconomic challenges such as inflation, high interest rates, and shifting consumer habits have played a notable role in influencing advertising expenditure during this five-year period.

Total advertising expenditure has risen each year since 2021, though ongoing structural changes and macroeconomic uncertainties have affected the rate of increase. Businesses have increasingly favored online and targeted advertising formats due to their efficiency and measurable outcomes, which has helped sustain overall industry growth despite softness in legacy media channels. These trends, along with broader economic recovery patterns and media consumption shifts, have been pivotal in shaping advertising budgets throughout the 2020 to 2025 period.