A major milestone is set to reshape the advertising industry in 2025. According to a recent report by eMarketer, global advertising spending will surpass $1 trillion for the first time in history—a doubling since 2016.
This surge highlights digital advertising’s continued dominance, expected to account for more than 75% of total ad spend this year. For small businesses, B2B marketers, and nonprofits, this marks a pivotal opportunity to rethink how advertising dollars are allocated and campaigns are structured.
Ad Spending Becomes a Trillion-Dollar Industry
Advertising joins a prestigious list of global industries that have reached the $1 trillion mark, including oil and gas, insurance, and real estate. In 2011, global ad spend stood at $384 billion. By 2025, it’s forecasted to climb past $1.03 trillion, with growth expected to remain strong through at least 2028. By 2028, the market will be worth over $1.3 trillion.
Over $85 billion in new ad spend is projected in 2025 alone—a figure that would have taken four years to achieve a decade ago. While the U.S. and China will continue to account for the majority of global spending (nearly 60%), other major markets including the UK, Germany, France, and India are showing substantial growth.
Digital’s Unrelenting Growth
In 2025, digital advertising will make up 75.2% of global ad spending, reaching $777 billion. This threshold arrives two years ahead of earlier projections, fueled by digital’s efficiency, agility, and measurable ROI. Growth in digital formats—especially programmatic display, search, and retail media—is outpacing all traditional formats.
While the U.S. and China hold the top two positions in ad spending, respectively, India leads the world in digital ad growth, projected at 20.2% in 2025, followed closely by Turkey, Spain, and France. Emerging markets are also beginning to play a greater role, though many still rely heavily on traditional formats. Notably, in countries like Turkey and Brazil, traditional media such as radio and out-of-home advertising remain dominant.
The Rise of Retail Media
Retail media continues to be the fastest-growing digital ad segment, forecast to make up 22.4% of all digital spend this year. Platforms like Amazon, Walmart, and Temu are leading this growth, as advertisers tap into retail networks that offer rich customer data and direct purchase behavior.
Retail media’s expected $231 billion in ad revenue in 2025 surpasses traditional display and search advertising growth rates. The format is quickly becoming a central pillar of digital strategy, especially for consumer brands looking to connect with buyers closer to the point of sale.
Big Tech’s Dominance Continues
Ten parent companies will surpass $10 billion in digital ad revenues in 2025. Alphabet, powered by Google and YouTube, is set to cross the $200 billion mark—making it the first company to do so. Meta is bouncing back strongly and now commands over 23% of global digital ad spend, while Amazon and ByteDance (TikTok/Douyin) continue their rise.
Together, Google and Meta will hold over 50% of the global digital advertising market, cementing the “duopoly” even as new players like Pinduoduo and Kuaishou join the $10B+ club.
What This Means for Small Businesses
Small businesses have more opportunities than ever to tap into digital advertising with relatively modest budgets. With targeted ad platforms, lookalike audience modeling, and geo-fencing, local and niche businesses can compete on impact—not just spend.
Key Takeaways for Small Businesses
- Leverage high-performing formats like social media video, retargeted display, and Google Search.
- Focus on hyper-local targeting to maximize ROI.
- Use analytics tools to refine campaigns based on real performance metrics.
Implications for B2B Marketers
For B2B companies, the shift to digital presents both a challenge and an advantage. With longer sales cycles and more decision-makers involved, B2B marketers must be strategic in reaching the right audience at the right time.
B2B Opportunities
- Utilize programmatic targeting to reach business decision-makers based on job titles, industries, and intent signals.
- Invest in content marketing supported by search and retargeting ads to nurture prospects over time.
- Take advantage of platforms like LinkedIn and niche display networks for thought leadership and lead generation.
Opportunities for Nonprofits
Nonprofit organizations are uniquely positioned to benefit from digital’s cost-efficiency and storytelling power. Platforms like Meta, YouTube, and Google Ads Grants offer nonprofits high-impact ways to drive donations and volunteer support.
Nonprofit Recommendations:
- Emphasize video storytelling for emotional engagement.
- Use donor data to personalize campaigns and improve retention.
- Focus on “Giving Days” and seasonal campaigns for conversion-driven advertising. (see related article Five Things We’ve Learned About Successful Year-end Fundraising Appeals)
Looking Ahead
As the advertising world crosses the trillion-dollar mark, digital will only tighten its grip on global budgets. Between now and 2028, nearly all new ad dollars will flow to digital. Traditional channels, while still relevant, are no longer the growth engines of the industry.
For marketers of all sizes and sectors, the time to embrace digital transformation is now. Whether you’re a local business, a B2B brand, or a mission-driven nonprofit, the digital space offers unparalleled opportunities for reach, measurement, and growth.
At Abbey Mecca, we’ve spent decades helping businesses, B2B marketers, and nonprofits get more from their advertising. If you’d like to explore what digital advertising can do for your organization—or just have a friendly chat—drop me a line at daniel.mecca@abbeymecca.com. I’d love to connect.
Sources:
- eMarketer. “Worldwide Ad Spending Forecast 2025.” Published November 2024.
