Economic uncertainty in 2023 morphed into election uncertainty in 2024, holding back many brands’ spending – but that could finally turn around in 2025. A new WARC Research survey reveals why a boost to core ad revenues could be coming to stabilize broadcasting.
Per WARC research, two-thirds of marketers anticipate improved business conditions, bumping its global ad spend forecast to $1.15 trillion in 2025. According to WARC Insight Director Aditya Kishore, “While rapid growth worldwide is unlikely in 2025, there are reasons to expect more stability than we have had in recent years as central banks regain control over inflation and interest rates decline.”
In the US, BIA Advisory Services anticipates that total local media revenues will reach $171 billion in 2025, marking a 5.5% increase in non-political advertising from 2024. However, when accounting for a projected decline in political ad spending, the overall forecast indicates a slight 1.3% decrease from the $173.7 billion expected in 2024.
Traditional radio is projected to experience a 1.6% decline in revenues, bringing it to approximately $10 billion, which would constitute about 5% of the total ad spend in the States.
WARC’s Marketer’s Toolkit highlights five key areas marketers must navigate in the coming year: improving economic conditions, balancing social media investments with brand safety concerns, addressing shifts in consumer lifestyles, enhancing the customer experience, and managing AI’s environmental impact.
As inflation subsides, consumer confidence is expected to rebuild, offering marketers a chance to shift strategies. WARC advises brands to focus on long-term value by maintaining pricing power and justifying premium costs. A significant area of concern is the growing gap between customer expectations and brand delivery. WARC estimates $3.7 trillion is at risk as dissatisfied customers cut spending or switch brands.
Despite enduring concerns about hate speech and misinformation on Big Tech platforms, companies like Alphabet, Amazon, and Meta continue to dominate global ad spend, accounting for 44% this year, according to WARC Media. Forty percent of surveyed marketers identified brand safety as a significant concern for 2025, up 10 percentage points in the past three years.
This is important for radio to note as BIA expects digital advertising to surpass traditional media for the first time in 2025, capturing 52% of the total local advertising spend. Radio’s digital platforms are expected to grow by 4.2%, reaching $2.9 billion and accounting for roughly 1.6% of the total local ad revenue.
Still, social media remains critical to marketing strategies in the WARC 2025 forecast, with only 8% of respondents planning to reduce their investment in the channel.
With reporting by Adam R. Jacobson
