In an unexpected shift within the display advertising landscape, marketers are allocating more resources to email advertising over programmatic ads for the first time. This change, highlighted by a Digiday+ Research survey conducted in Q1 2025, indicates a significant realignment in how marketing professionals approach digital advertising channels.
Display Advertising: A Growing Force
Display advertising, encompassing both email and programmatic ads, has solidified its position as the second most-utilized marketing channel, trailing only behind social media. According to the survey, 79% of marketing professionals are currently employing display ads, marking an increase from 72% in Q1 2024. This upward trend signifies a growing confidence in display advertising as a viable marketing tool.
The financial commitment to display ads reflects this confidence, with 52% of marketers reporting it as one of the top two channels to which they allocate the highest portion of their budgets. This is an increase from 46% in Q1 2024, showcasing a steady rise in investment over the past year.
Moreover, there is a noticeable increase in marketers’ confidence regarding display ads driving marketing success. Fifty-five percent of professionals in Q1 2025 expressed high confidence in these ads, up from 38% in the previous year.
Decline in Programmatic Advertising
While display ads as a whole are on the rise, programmatic advertising tells a different story. The utilization of programmatic site display ads has seen a significant decline, with only 62% of marketers using them in Q1 2025, down from 77% the year prior.
Spending trends for programmatic ads have also been on a downward trajectory. In 2022, all surveyed marketers allocated at least a small portion of their budgets to programmatic ads. However, this percentage dropped to 93% in 2023, 85% in 2024, and further down to 76% in Q1 2025.
Interestingly, the proportion of marketers dedicating a substantial portion of their budgets to programmatic ads has remained steady at 22% over the last two years. Yet, this stability follows a significant drop from 32% in 2022 to just 11% in 2023.
Rise of Email Advertising
As programmatic advertising declines, email marketing emerges as a rising star. Digiday’s survey highlights a notable increase in the use and spending on email advertising. In Q1 2025, nearly two-thirds (64%) of marketers reported using email newsletter sponsorships or ads, up from 51% in Q1 2024.
The financial commitment to email advertising has also grown. In Q1 2025, 84% of marketers spent at least a small portion of their budgets on email, an increase from 71% in the previous year. Furthermore, those allocating a large or very large portion of their budgets to email ads doubled from 6% in 2024 to 12% in 2025.
Budget Shifts in Display Advertising
The shifts in marketers’ use and spending on programmatic and email advertising reflect broader changes in display ad budgets. In Q1 2025, 32% of marketers reported an increase in their programmatic site display ad budget compared to the previous year. This is a decline from 40% in Q1 2024.
Conversely, email advertising budgets have seen a more positive trend. Last year, 20% of marketers experienced an increase in their email advertising budgets, while this year, that figure rose to 30%.
These findings underscore a pivotal shift in marketing strategies, as email advertising continues to gain traction amidst the evolving landscape of digital marketing. For more insights and updates on marketing trends, visit martechtrend.com.
Note: This article is inspired by content from https://digiday.com/marketing/digiday-research-programmatic-ad-spend-loses-out-to-email-this-year/. It has been rephrased for originality. Images are credited to the original source.