IAB Releases 2025 Outlook Study: A Look at Ad Spend Trends

News Summary

The Interactive Advertising Bureau (IAB) recently released its ‘2025 Outlook: A Snapshot into Ad Spend, Opportunities, and Strategies for Growth’ study. It outlines expected trends in ad spending, indicating a 7.3% increase overall, with retail media set to grow by 15.6%. Additionally, Connected TV and social media ads are projected to rise significantly. The study emphasizes a focus on customer acquisition and the challenges of measurement in a fragmented advertising ecosystem. Generative AI is increasingly being adopted, with 80% of respondents either using or exploring its use.

IAB Releases 2025 Outlook Study: A Look at Ad Spend Trends

Hey there! If you’re involved in the marketing world, you’ve probably noticed how fast things are changing. Well, the Interactive Advertising Bureau (IAB) has just rolled out its latest study, “2025 Outlook: A Snapshot into Ad Spend, Opportunities, and Strategies for Growth,” and it’s packed with juicy insights for the year ahead. Released on January 16, 2025, this study offers a sneak peek into what we can expect in ad spending trends over the coming year.

Overall Ad Spend on the Rise

According to the findings, overall ad spend is expected to grow by a modest 7.3% in 2025. Now, while that might not seem quite as exciting when we compare it to the robust growth we witnessed in 2024—thanks to big events like the Olympics and the presidential election—it’s still a positive direction amidst various challenges.

The Rise of Retail Media

One of the standout revelations from the report is the significant growth expected in the retail media sector. It’s projected to outpace the overall ad spend growth rate, ballooning by an impressive 15.6%. This trend highlights how brands are increasingly leveraging their digital platforms to connect directly with consumers.

Connected TV and Social Media Ads

If you’re a fan of binge-watching your favorite shows, you’ll be glad to hear that Connected TV (CTV) is also on the rise, with a growth rate forecasted at 13.8%. Furthermore, social media ad spending is anticipated to see a healthy uptick of 11.9%. This signals that brands are keen to capture attention where audiences are spending their time.

Customer Acquisition Takes Center Stage

When it comes to priorities, the study reveals that buyers are increasingly focused on customer acquisition. This goal has jumped by 12% year-over-year, largely driven by the need for revenue growth amidst rising inflation and dwindling profit margins.

Navigating Measurement Challenges

Now, it’s not all smooth sailing. The fragmented advertising ecosystem, along with the complications of signal loss and walled gardens, has pushed buyers to take a long, hard look at their marketing mix models (MMM). The challenges around measurement remain, especially when it comes to cross-platform analysis in the realm of video streaming. It’s a tough nut to crack!

The Role of Generative AI

What about technology? Well, it looks like generative AI is the latest hot topic on everyone’s radar! According to the survey, a whopping 80% of the respondents are either currently using (42%) or exploring (36%) generative AI for media planning and activation. However, it seems many companies are also mindful of safety, with half of those utilizing AI ensuring mandatory human oversight and solid brand safety protocols. Yet, there’s room for improvement—only about one-third have set up resources for collaborative efforts within their teams.

Words from the Top

IAB’s CEO stressed the importance of transparency, choice, and delivering effective business results to maintain buyer optimism in these changing times. It’s clear that while the landscape is shifting, there’s a collaborative spirit aiming to navigate these waters.

Conclusion

So there you have it folks! With 2025 approaching fast, brands and agencies are busy strategizing their plans while looking to make the most of the current trends in advertising. The full findings of this insightful study are available through IAB’s official channels. Given the growing focus on customer acquisition, innovative use of AI, and upcoming trends, it certainly looks like an exciting year ahead!

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Additional Resources

• IAB Report on Digital Advertising Growth
• Wikipedia: Advertising
• Statista: New York Times Ad Expense
• Google Search: Digital Advertising 2025
• AdImpact Blog on NY CD 16 Primary
• Google Scholar: Digital Advertising Growth
• TVTechnology: IAB Survey on Ad Growth and AI
• Encyclopedia Britannica: Advertising
• NY1: Record Breaking Ad Spending in NY 16 Primary
• Google News: 2024 Election Ad Spending

Author: HERE Lexington