How brands have shifted digital spend in 2025

"Midway through 2025, it's clear that brands are redirecting their advertising budgets at an unprecedented pace. The move toward digital isn't new, but this year's strategies highlight a deeper recalibration - one defined by AI adoption, measurement precision, and the diminishing relevance of traditional media. These shifts are not just reshaping the marketing world; they're quietly altering how consumers discover, evaluate, and buy products every day, Moonfruit reports."

"Brands are rapidly reallocating ad budgets toward digital channels, driven by AI adoption, precision measurement, and declining reliance on traditional media. AI-powered automation, ROI-focused performance marketing, and booming retail media networks are the primary forces reshaping marketing strategies. A few major platforms like Google, Meta, TikTok, and Amazon dominate ad spend, pressuring traditional agencies to adapt with faster, data-led solutions."

"Global ad revenue is poised to surpass $1 trillion this year, with pure-play digital commanding roughly 73% of the total. Traditional media (print, radio, and national TV) is shrinking, as advertisers direct funds toward platforms offering granular tracking, precision, and scale. In fact, from 2024 to 2025, traditional advertising spend is expected to decline by 3.7%. Three powerful forces are reshaping ad budgets: Rise of AI and Automation. Generative AI tools now power core ad functions - from creative generation to automated bidding - making digital campaigns faster and leaner."

Digital ad spending dominates the market, with pure-play digital capturing roughly 73% of global ad revenue and total ad revenue poised to exceed $1 trillion. Traditional media spending is shrinking, with a projected 3.7% decline from 2024 to 2025. Three forces drive budget shifts: AI-powered automation, ROI-focused performance marketing, and expanding retail media networks. Generative AI accelerates creative production and automated bidding, making campaigns faster and leaner. A few major platforms—Google, Meta, TikTok, and Amazon—concentrate ad spend and compel agencies to adopt faster, data-led solutions. Consumers encounter more personalized, embedded, and privacy-conscious advertising.

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