Global Ad Spend Rising Faster Than Expected

The global advertising economy is growing at a rate that few envisioned. Despite economic volatility and tariff uncertainty, companies are doubling down on digital platforms, fueling worldwide ad spend, which is projected to be 7.4 percent higher this year at $1.17 trillion. That’s an increase over previous projections – and evidence that marketers do not view digital channels as discretionary, but as required. 

What’s Behind the Boom? 

Among the many reasons, one stands out as huge: the so-called “pre-tariff windfall.” Advertisers assumed tariffs would increase their prices and therefore advanced their ad spending at the start of the year, creating a wave of expenditures that boosted the market as a whole. During Q2 alone, social media ad spending increased 20.2 percent year over year, accounting for nearly $4.9 billion more than anticipated. 

Retailers, in particular, saw significant growth, with investments in Instagram were 18.8 percent higher and TikTok saw a 56.8 percent increase, an impressive jump. Tech and consumer electronics companies also ramped up spending, as a shift to connect with audiences ahead of potential price hikes. 

Where the Money Is Going 

Digital is where the action is. Nine out of 10 new advertising dollars are going to digital-first platforms, and they are the growth engine of global marketing. Social media alone is pulling in more than 40 percent of new ad dollars, while retail media and non-retail search combined account for another 40 percent. 

Only three firms – Google (Alphabet), Amazon, and Meta – are set to control over half (55.8 percent) of global ad expenditure this year, excluding China. Amazon, specifically, continues to expand its leverage, controlling over a third of the retail media space. 

Meanwhile, traditional media outlets such as newspapers, radio, and broadcast TV continue to decline, indicating a structural shift in how people consume content and how brands must position themselves. 

Digital Advertising: Strong Growth Continues 

Even in the face of headwinds such as trade tensions and inflation, advertising has proved to be incredibly resilient. According to WARC, the global ad market is expected to nearly double its pre-pandemic value to an estimated $1.36 trillion by 2027. For marketers, digital-first strategies are shaping the future. 

This trend also teaches us a valuable lesson for industries like the automotive sector. As shoppers increasingly research, shop, and interact online, the companies that place digital at the center of their strategy will be the ones that stay ahead, regardless of whatever other pressures they may encounter. 

Driving Dealer Success with Strong Automotive 

The rapid growth of global ad spend serves as a wake-up call for auto groups and dealerships to strengthen their digital marketing strategies. As consumer behavior continues to shift toward streaming, social, and retail media, it’s more important than ever to engage audiences where they are. 

That’s where Strong Automotive comes in. Our professionals excel at creating data-driven strategies to position your dealership at the forefront of conversation – from optimizing Google campaigns to reaching Amazon DSP shoppers or creating engaging social media content that converts. As the advertising landscape continues to change rapidly, Strong Automotive helps your brand move faster, smarter, and with measurable results.