While 2024 saw a strong 12.4% increase in ad spending, 2025 projections have been revised downward, now expecting a 4.3% growth rateÑdown from an earlier estimate of 4.9%. Economic concerns, including a sharp decline in the Consumer Confidence Index and ongoing inflation, are driving advertisers toward digital-first strategies with measurable engagement.
Legacy media continues to feel the pressure, with broadcast radio expected to decline by 3.2% in 2025, matching its 2024 drop. AM/FM’s traditional strongholds, such as automotive and quick-service restaurants, are shrinking, but emerging opportunities exist in sectors like pharmaceuticals, retail, finance, and podcasting-aligned media.
Despite radio’s struggles, digital advertising remains robust. Digital Pure Players are projected to grow 9.6%, reaching $293 billion in ad revenue, with social media, retail search, and short-form video experiencing double-digit increases. Digital audio, including platforms like Spotify, is expected to rise 3.7% to $3.2 billion, though podcasting will see slower growth, with ad sales increasing 9%Ña notable deceleration from previous years.
Local television faces the steepest decline among traditional media, dropping 27% due to the lack of political ad spending. Even without election-related dollars, local TV is expected to contract by 3.7%.