WPP Media has revised its forecast for the global advertising market, projecting a growth rate of 8.8% for 2025, up from earlier estimates of 6%. This adjustment comes amidst a more resilient market than anticipated, as the advertising industry navigates ongoing disruptions from tariffs and leverages the emerging potential of artificial intelligence (AI). In its latest blog post, WPP Media stated that global ad revenue is expected to reach $1.14 trillion and suggested that this momentum will continue into 2026, bolstered by significant events such as the Winter Olympics and the FIFA World Cup.
The agency noted significant shifts within the media landscape, particularly due to the rise of ad-supported streaming, retail media, and the burgeoning creator economy, all of which are benefiting from AI-driven innovations. In an acknowledgment of these transformations, WPP Media has updated its category classifications, replacing “search” with “intelligence” to better reflect the impact of AI on the digital economy. With WPP’s broader strategy focusing heavily on AI integration, the agency appears well-positioned to adapt to these changes.
Content-driven advertising remains the largest segment of the market, accounting for 58% of expected revenues in 2025, projected to total $663.5 billion. Within this category, gaming is emerging as the fastest-growing channel, anticipated to increase by 29.5% to reach $8.5 billion this year. However, it still comprises a relatively small portion of the overall content market, at just 0.7%.
The report from WPP Media highlights the evolution of commerce-related advertising, which is expected to surpass traditional television advertising for the first time in 2025, with global ad revenue reaching $178.2 billion. China is projected to lead this sector, generating approximately $76.3 billion, followed closely by the U.S. at roughly $58 billion. However, the agency cautioned that retail media may soon face pressures for consolidation, as the model for monetizing first-party data is being adopted across various industries, prompting WPP Media to include financial services and travel media networks in its new analysis categories.
Looking ahead, WPP Media anticipates that the growth momentum observed in 2025 will carry into 2026, albeit at a lower rate of nearly two percentage points. Despite the recurring high-profile sponsorship events like the World Cup and the Olympics, the agency has opted to exclude U.S. political ad spending from its top-level forecasts. While the political landscape may influence spending in the near term, brands are demonstrating resilience, continuing to allocate budgets towards innovative channels to engage consumers who are becoming increasingly selective with their spending.
The broader implications of this upward trend in advertising revenue signal a potential recovery and adaptation within the industry, as brands embrace emerging technologies and innovative platforms to connect with their audiences. As WPP Media aligns its strategy with ongoing developments in AI and digital content creation, the agency reflects a cautious optimism for the advertising landscape in the coming years.
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