Digital Advertising Expected to See Double-Digit Growth Across Retail Media, CTV and Social Media

Things look positive in the digital advertising world.

This week, the Interactive Advertising Bureau (IAB) released its 2025 Outlook report, which examines ad spending trends for the new year. The report is based on a survey of brand and agency buyers to better understand their growth strategies, planned spending by channel and the challenges they may face.

According to the results, digital technology is expected to experience considerable growth in 2025.

“This report clearly shows that budgets are focused on the intersections of consumer, commerce and video, where advertisers can harness the power of sight, sound and motion and where consumers can engage or transact,” David Cohen, CEO of IAB, said in a statement. “Advertisers are starting the year looking for growth and investing in channels that drive the most meaningful business results.”

While businesses are already starting to plan New Fronts and right off the bat, here are some of the key takeaways from the results:

Double-digit growth expected for CTV, social media and retail media

While overall ad spending growth is expected to be lower than in 2024 (which surged in part thanks to the Olympics and presidential election), IAB research shows expected growth of 7.3%, even without these cyclical events.

At the same time, retail media is expected to grow at a rate more than twice as high as overall spending (+15.6%). The report notes that CTV and social media (apparently despite a impending ban on TikTok) also expect double-digit growth with an increase of 13.8% and 11.9% respectively.

Buyers seek growth despite inflation, fragmentation and measurement challenges

The IAB study shows that buyers are not deterred by persistent barriers, including fragmentation. According to the findings, customer acquisition remains a top priority and is expected to grow 12% year-over-year as buyers seek revenue growth to offset shrinking margins due to inflation.

Additionally, the fragmented advertising landscape requires the buy-side to change its marketing mix models, as well as its strategies to improve reach and frequency, according to the IAB.

The problems persist. Buyers remain concerned about deduplication, incrementality and measurement, particularly in the area of ​​video streaming.

Interestingly, when ADWEEK recently asked TV insiders and experts about which topics would dominate the news Television industry in 2025, measurement was always a priority.

Majority of buyers are using or exploring AI in media planning and activation

The inclusion of generative AI in media planning has grown, with approximately 80% of buyers using (42%) or exploring (36%) media planning and/or activation technology, according to the report. the IAB. Half of users are already calling for mandatory human monitoring and clear brand safety protocols to protect against abuse, inaccuracies and other risks.

“Reflective optimism from buyers is always a good way to start the year,” Cohen added. “And the smartest way for the industry to keep this alive is to give advertisers the transparency, choice and business outcomes they seek.” The market waits for no one, we must continue to move forward.

The full report Outlook 2025: Overview of Advertising Spending, Opportunities and Growth Strategies is available. here.