Sophie Blake
The advertising industry has reached a historic turning point, with global ad revenue crossing the $1 trillion mark for the first time in 2024. According to a report by GroupM, this landmark achievement highlights the transformative power of digital platforms and the continued dominance of tech giants. The growth doesn’t stop here, as projections indicate a 7.7% increase in 2025, taking total ad revenue to $1.1 trillion.
More than half of this staggering figure is generated by five digital behemoths: Google, Meta, ByteDance, Amazon, and Alibaba. These companies lead the charge in a market where digital advertising is projected to account for 81.7% of total revenue by 2025. This figure includes not only traditional online ads but also burgeoning sectors like streaming TV, digital out-of-home advertising, and online publications.
While traditional TV advertising remains a significant contributor, its growth pales compared to the explosive rise of streaming platforms. Total TV ad revenue is expected to grow modestly by 1.9% to $169.1 billion in 2025. However, streaming TV is forecasted to grow at a robust 12.9% during the same period, while linear TV faces a decline of 3.4%.
GroupM predicts that streaming TV will surpass linear TV revenue in the United States by 2029, marking a seismic shift in how advertisers allocate budgets. Currently, linear TV accounts for 72.6% of total TV ad revenue, compared to the relatively smaller share held by streaming. Factors like limited ad inventory—four to five minutes per hour on streaming platforms compared to 12 minutes on linear TV—continue to shape this gradual transition.
Retail media is emerging as the advertising powerhouse of the future, outstripping even TV in growth potential. After a remarkable 18.2% surge this year, global retail media ad revenue is poised to rise another 13.8% in 2025, reaching $176.9 billion. This milestone will mark the first time retail media revenue surpasses that of television advertising.
North America and Asia-Pacific lead the retail media boom, with revenues projected at $50 billion and $97.6 billion respectively by 2025. China alone is expected to contribute $74.4 billion, underscoring its pivotal role in the global advertising ecosystem. Meanwhile, countries like India, Brazil, and Germany are experiencing rapid growth in retail media, with India poised to see retail media surpass search advertising for the first time in 2025.
Artificial intelligence is reshaping the advertising landscape, with major platforms investing heavily in AI tools to enhance market insights and campaign efficiency. Tech giants such as Google, Meta, and Amazon—expected to command 41% of global ad revenue by 2025—are leading the charge with advanced large language models (LLMs) tailored to brand awareness and identity.
Despite the buzz surrounding AI, the report notes that its adoption remains cautious. Companies are primarily using AI as a sophisticated tool for market analysis rather than allowing it to autonomously handle advertising purchases. GroupM highlights that while AI holds transformative potential, the industry is still in the early stages of fully leveraging its capabilities.
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