Global ad spend to surpass 1 trillion dollars in 2025: Report

Global advertising spending is set to exceed $1 trillion in 2025, reflecting a 10.7 percent increase from the previous year, according to The VDO.AI, Matters of Marketing 2025 report. This growth highlights the industry's resilience, not only recovering from past disruptions but also redefining strategic priorities. With an 80 percent increase in spending compared to pre-pandemic levels, brands are focusing on innovation, authenticity, and data-driven decision-making to stay competitive in a rapidly evolving digital landscape.

The rise of the intentional consumer

Consumers are adopting a more deliberate and value-driven approach to spending. While inflation has stabilised, economic uncertainty remains a key influence, with rising food and utility costs cited as the top financial concerns for 33% and 20% of global consumers, respectively. Traditional brand loyalty is projected to decline by 25%, as consumers prioritise affordability, sustainability, and quality over long-standing brand affiliations.

Price sensitivity remains a dominant factor, with 36% of consumers opting for whichever brand is on promotion and 32% switching to lower-cost alternatives. Digital platforms play a crucial role in discount discovery, with 27% of global shoppers preferring online shopping for better deals. However, value-driven consumption goes beyond price alone, with 67% of consumers willing to try a new brand if it offers affordability along with additional benefits such as sustainability or health-conscious attributes.

The shift towards digital video

As 83.6% of US households now own a connected TV (CTV), advertisers are reallocating budgets from traditional television to CTV and online video (OLV), both of which offer better audience targeting and higher engagement rates. The demand for CTV advertising is expected to grow by 27% in 2025, while traditional television spending is anticipated to decline.

Consumer attitudes toward video ads have also evolved. A decade ago, many ad formats faced widespread rejection, yet recent trends show increasing acceptance. Today, 78% of consumers prefer video content when learning about a product, and 49% of connected TV users in the US believe CTV ads are more relevant to them than traditional television ads. Meanwhile, shoppable and interactive video ads are becoming a key driver of e-commerce integration within streaming platforms.

Artificial Intelligence reshaping marketing

AI is fundamentally altering how brands interact with consumers. In 2024, 50% of marketers experimented with generative AI for tasks such as content creation, campaign optimisation, and consumer analytics. By 2025, an additional 30% are expected to follow suit.

Consumers, too, are increasingly comfortable with AI-powered recommendations. Surveys indicate that:

• 40% would accept AI-generated product recommendations.
• 35% would use AI to automate and speed up shopping decisions.
• 34% would allow "smart" devices, such as fridge sensors, to automatically reorder products.

With 71% of consumers expecting personalised interactions and 76% expressing frustration when brands fail to deliver them, AI-driven personalisation will be crucial for maintaining customer engagement and loyalty.

Attention as the new currency

With digital saturation at an all-time high, consumer attention has become the most valuable metric for brands. Marketers are shifting their focus from click-through rates and impressions to "attentive seconds", which provide deeper insights into audience engagement.

As storytelling remains a core branding strategy, the emphasis in 2025 will be on:

• Personalisation – Aligning brand narratives with consumer interests.
• Niche communities – Leveraging creator-led spaces and fandoms to drive organic engagement.
• Interactivity – Incorporating immersive ad experiences to captivate audiences.
• Authenticity – Maintaining credibility and emotional resonance, as 43% of consumers prefer brands that align with their values.

This new approach to measuring engagement is gaining traction, with 87% of CMOs now using attention-based metrics to optimise media performance.

Navigating the future 

As marketing moves into an AI-driven, data-centric future, brands must strike a delicate balance between innovation, consumer trust, and ethical advertising practices. With 83% of media experts predicting a rise in ad fraud and misinformation, businesses must prioritise brand safety, responsible targeting, and transparent data usage.

The most successful brands in 2025 will be those that embrace technological advancements while maintaining human-centred storytelling. By leveraging AI, digital video, and precise attention metrics, marketers can craft campaigns that resonate deeply, engage meaningfully, and drive sustained growth in an increasingly fragmented digital landscape.

Amitt Sharma, CEO of VDO.AI, commented, “In a world defined by exponential change, brands must anchor themselves in innovation, authenticity, and a steadfast commitment to value creation. In this report, VDO.AI delves into the key trends shaping the industry, offering actionable intelligence to drive your campaigns forward.”

Akshay Chaturvedi, CBO of VDO.AI, added, “Marketers and decision-makers are presented with both an opportunity and a challenge: how to harness this growth while staying ahead of the curve in an increasingly competitive market. In The Matters of Marketing 2025, we explore the trends that will shape our industry's future. Each insight is a blueprint for action, equipping businesses to anticipate shifts and lead with confidence.”