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WPP Media cuts 2025 global advertising revenue growth forecast to 6% on trade concerns
June 9 (Reuters) - Global advertising revenue is expected to grow 6% this year, WPP Media said on Monday, lowering its earlier target of 7.7% due to uncertainty over U.S. trade policies. Advertisers are appearing to delay making new commitments to their marketing plans because of the shifting policies, according to a report by the media investment arm of ad group WPP (WPP.L), opens new tab. WHY IT'S IMPORTANT Digital ad spending by companies is a major driver of revenue for Alphabet-owned (GOOGL.O), opens new tab search giant Google and social media firms such as Meta Platforms (META.O), opens new tab, Pinterest (PINS.N), opens new tab, Reddit (RDDT.N), opens new tab and Snap (SNAP.N), opens new tab. Economic uncertainty is accelerating the adoption of AI tools in ad production and targeting, the WPP Media report said. Meta aims to allow brands to fully create and target ads with its AI tools by the end of 2026, the Wall Street Journal reported last week. Research firm Emarketer recently said companies that rely on traditional keyword-based search ads could lose revenue due to the growing popularity of AI-driven search ads. BY THE NUMBERS WPP Media now expects global ad revenue to reach $1.08 trillion in 2025, with 6.1% growth projected for 2026. Digital advertising is expected to account for 73.2% of the global revenue this year. In 2025, user-generated content will account for a greater share of ad revenue than professionally produced content, the report said. It forecast print advertising revenue will fall 3.1% to $45.5 billion this year, while search revenue is expected to grow 7.3%. CONTEXT WPP Media said brands are expected to prioritize flexible ad contracts, shift budgets toward media placements that reach consumers directly and focus on secure data strategies amid economic uncertainty. The U.S. remains the largest ad market and is expected to grow 5.6% to $404.7 billion, followed by China and the UK, according to the report. Reporting by Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Media & Telecom
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WPP Media cuts 2025 global advertising revenue growth forecast to 6% on trade concerns
(Reuters) -Global advertising revenue is expected to grow 6% this year, WPP Media said on Monday, lowering its earlier target of 7.7% due to uncertainty over U.S. trade policies. Advertisers are appearing to delay making new commitments to their marketing plans because of the shifting policies, according to a report by the media investment arm of ad group WPP . WHY IT'S IMPORTANT Digital ad spending by companies is a major driver of revenue for Alphabet-owned search giant Google and social media firms such as Meta Platforms, Pinterest, Reddit and Snap. Economic uncertainty is accelerating the adoption of AI tools in ad production and targeting, the WPP Media report said. Meta aims to allow brands to fully create and target ads with its AI tools by the end of 2026, the Wall Street Journal reported last week. Research firm Emarketer recently said companies that rely on traditional keyword-based search ads could lose revenue due to the growing popularity of AI-driven search ads. BY THE NUMBERS WPP Media now expects global ad revenue to reach $1.08 trillion in 2025, with 6.1% growth projected for 2026. Digital advertising is expected to account for 73.2% of the global revenue this year. In 2025, user-generated content will account for a greater share of ad revenue than professionally produced content, the report said. It forecast print advertising revenue will fall 3.1% to $45.5 billion this year, while search revenue is expected to grow 7.3%. CONTEXT WPP Media said brands are expected to prioritize flexible ad contracts, shift budgets toward media placements that reach consumers directly and focus on secure data strategies amid economic uncertainty. The U.S. remains the largest ad market and is expected to grow 5.6% to $404.7 billion, followed by China and the UK, according to the report. (Reporting by Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed)
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WPP Media reduces its 2025 global advertising revenue growth forecast to 6% due to U.S. trade policy uncertainties, while emphasizing the increasing adoption of AI in ad production and targeting.
WPP Media, the media investment arm of advertising group WPP, has lowered its 2025 global advertising revenue growth forecast from 7.7% to 6% due to uncertainties surrounding U.S. trade policies 1. The revised projection comes as advertisers appear to be delaying new commitments to their marketing plans in response to shifting policy landscapes.
Source: Reuters
The forecast adjustment is particularly significant for major players in the digital advertising space. Companies like Alphabet's Google, Meta Platforms, Pinterest, Reddit, and Snap heavily rely on digital ad spending as a primary revenue source 1. The slowdown in growth could potentially impact these tech giants' financial performance in the coming years.
Despite the overall slowdown, the WPP Media report highlights an interesting trend: economic uncertainty is accelerating the adoption of AI tools in ad production and targeting 2. This shift towards AI-driven advertising solutions is reshaping the industry landscape. For instance, Meta aims to enable brands to fully create and target ads using its AI tools by the end of 2026, according to a recent Wall Street Journal report.
The rise of AI in advertising is not without its challenges for traditional advertising methods. Research firm Emarketer suggests that companies relying on conventional keyword-based search ads might face revenue losses due to the increasing popularity of AI-driven search ads 1. This shift underscores the need for advertisers to adapt to evolving technologies to remain competitive.
WPP Media now anticipates global ad revenue to reach $1.08 trillion by 2025, with a projected growth of 6.1% for 2026 2. Digital advertising is expected to dominate, accounting for 73.2% of global revenue this year. Interestingly, the report predicts that by 2025, user-generated content will surpass professionally produced content in terms of ad revenue share.
The forecast paints a contrasting picture for different advertising mediums. While print advertising revenue is expected to decline by 3.1% to $45.5 billion this year, search revenue is projected to grow by 7.3% 2. This divergence highlights the ongoing shift from traditional to digital advertising channels.
In response to economic uncertainties, WPP Media anticipates that brands will prioritize flexible ad contracts, shift budgets towards direct-to-consumer media placements, and focus on secure data strategies 1. These adaptations reflect the industry's need to remain agile in a rapidly changing advertising landscape.
Despite the challenges, the United States maintains its position as the largest advertising market. It is expected to grow by 5.6% to $404.7 billion, followed by China and the UK 2. This growth, albeit slower than previously forecast, indicates the resilience of the advertising industry in the face of economic headwinds.
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