Monday, December 15, 2025

Ad Market Poised for Growth, Traditional Audio Faces Decline


Global advertising spending is forecast to surge in the coming years, fueled by AI innovation, digital platforms, and major events, with WPP Media projecting an 8.8% rise to $1.14 trillion in 2025 (excluding U.S. political ads) and 7.1% growth in 2026. 

Dentsu predicts global ad spend will exceed $1 trillion for the first time in 2026 with 5.1% growth, outpacing the world's expected 3.1% economic expansion.

However, traditional audio channels are losing ground amid this boom, with WPP forecasting audio's global share dropping from 4.48% in 2024 to 4.15% in 2025, 3.95% in 2026, and just 3.08% by 2030 due to shifts toward digital video, commerce media, and AI-driven experiences.

WPP's "This Year Next Year" end-of-year forecast highlights resilience driven by trade stability and AI investments. Commerce media is set to overtake TV for the first time, reaching $178.2 billion in 2025, while digital out-of-home (DOOH) approaches parity with traditional OOH by 2030.Dentsu describes the industry entering an "Algorithmic Era," where media becomes the primary gateway for brands. 

Digital ad spend is expected to grow 6.7% in 2026, claiming 68.7% of total investment, led by retail media (+14.1%), online video (+11.5%), and social media (+11.4%). Major events like the Winter Olympics, FIFA World Cup, and U.S. midterms will boost engagement, with the U.S. projected to rise 5.0%.

Traditional formats show mixed results in Dentsu's outlook: TV up modestly at 2.4%, out-of-home at 4.1%, while print falls 3%. Notably, Dentsu omits radio/audio from its breakdowns.

For U.S. radio specifically, BIA Advisory Services offers a brighter view, forecasting over-the-air revenue growth of 1.83% in 2026—reversing a 2025 decline—plus 5.01% in digital radio, supported by $7.9 billion in political ads across local media.

Other channels vary: WPP sees newspapers stabilizing near $31.4 billion in 2025 before declining, while audio remains near-flat globally at around $27.5-27.6 billion.

The contrasting forecasts underscore "creative destruction" in advertising: explosive digital and AI-driven growth contrasts with erosion in legacy audio, as advertisers chase personalized, pervasive experiences in an increasingly algorithmic landscape.