Advertising Market Surpasses Expectations
Despite economic headwinds and technological disruption, the global advertising industry shows unexpected resilience. WPP Media, the media investment division of WPP, has revised its full-year revenue forecast upward, now projecting global ad revenue to grow by 8.8% in 2025, reaching a total of $1.14 trillion. This marks a significant increase from the previously estimated 6% growth.
The forecast indicates that this momentum will carry into 2026, a year featuring major global events such as the Winter Olympics and FIFA World Cup. WPP Media expects ad revenue to increase by 7.1% that year, highlighting the robustness of the market amid global economic and technological shifts.
New Channels Drive Investment
WPP Media attributes much of this growth to emerging advertising channels, particularly ad-supported streaming, retail media, the creator economy, and AI-powered innovations. The agency has updated its analytical categories to better reflect these evolving dynamics, emphasizing that content remains the primary driver of advertising investment.
Within the content category—which covers everything from social media to traditional print—gaming emerges as a standout. Though it represents a small fraction of the total market at just 0.7%, gaming is the fastest-growing subcategory, expected to grow by 29.5% to reach $8.5 billion in 2025.
Retail Media Surpasses Traditional TV
Retail media, a rapidly expanding segment of the commerce category, is poised to overtake traditional television advertising for the first time. Global ad revenue in the commerce space is projected to reach $178.2 billion in 2025. China leads this segment with $76.3 billion in revenue, followed by the United States at approximately $58 billion.
WPP Media also notes that retail media is likely to undergo significant structural changes, including potential consolidation and revenue cannibalization by AI technologies. The monetization of first-party data—a hallmark of the retail media model—has already begun to spread into other industries, prompting the agency to introduce new categories like financial services media networks and travel media networks into its evaluations.
AI: A Game Changer in Advertising
Artificial intelligence continues to transform the advertising landscape. According to WPP Media, AI is influencing nearly every facet of the industry, including content creation, media planning, measurement, and consumer engagement. The agency has even reclassified its “search” category to “intelligence” in recognition of AI’s growing role in reshaping the digital economy.
WPP, the parent company of WPP Media, is doubling down on AI as part of its broader business strategy. The company believes that its existing machine learning integrations position it well to adapt to the ongoing changes brought by AI advancements.
Content-Driven Advertising Dominates
Content-driven advertising remains the largest slice of the global ad market, commanding a 58% share of projected 2025 revenues, equivalent to $663.5 billion. This category encompasses a wide range of formats, including social media, streaming platforms, and traditional print media. Despite challenges posed by tariffs and shifting consumer behaviors, brands continue to invest heavily in content to capture audience attention and drive engagement.
WPP Media’s revised projections align with other industry forecasts showing that the advertising sector is weathering economic pressures better than expected. While the Trump administration’s tariff policies have contributed to a more cautious consumer outlook, advertisers are finding ways to reach cost-conscious shoppers through innovative and data-driven channels.
Looking Ahead to 2026
Although growth in 2026 is expected to slow slightly to 7.1%, the presence of major global events and a heated U.S. midterm election season will continue to fuel ad spending. However, WPP Media’s forecast does not include political advertising in its top-level projections.
The agency believes that the trends observed in 2025—particularly the rise of retail media, the impact of AI, and the diversification of content channels—will continue to shape the industry in the years ahead. As advertisers navigate a complex and rapidly evolving landscape, adaptability and innovation will be key to maintaining momentum.
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