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The news: Digital advertising had a strong showing in Q1 2025, with major platforms reporting growth across search, social, streaming, and retail media. But looking ahead, macroeconomic headwinds—particularly tariffs and regulatory action—are clouding the outlook.

Brazil’s digital economy continues to thrive, driven by shifting advertising trends and increased social media usage. This report series explores key media consumption trends in Brazil in 2025.

Retail and ecommerce sales, by country.

Nearly $30 billion in ad spend will skip the ad triopoly: Meta, Google, and Amazon will see pullbacks as advertisers explore other options

Latin America’s digital revolution is marching full steam ahead, with consumers spending more than a third of their day online. As social commerce and retail media propel the region’s digital economy to new heights, the runway for growth remains long.​

Retail media search is gaining steam while Google and other traditional search players lag. Marketers will grapple with genAI and measurement challenges as they rely more heavily on retailers’ search ad offerings.

Mercado Libre’s retail business is thriving: Advertising revenues rose 50% YoY in Q1, and there’s ample room for growth.

Shein and Temu pull back US digital ad spending, shift to Europe: The change shows how geopolitical tensions trickle down to business operations.

Marketers are cutting branding spend in favor of performance media: Search and retail win as caution dominates strategy.

Retail media networks (RMNs) will be big drivers of DOOH growth over the next few years. RMN growth is strong everywhere. In 2024, RMNs will account for 18.0% of all US digital ad sales, with that figure rising to more than 25% by 2027. The in-store component of RMNs is growing even more quickly. Overall retail media ad spending will grow 26.0% YoY in the US in 2024, but in-store will grow 31.9% YoY.

The news: Cannes Lions 2025 marked a shift in retail media strategy, with platforms like Pinterest and Reddit forging deeper ties with retailers. CVS announced a clean room data partnership with Reddit to allow targeting based on shared first-party data, launching a Sensodyne and Advil campaign this fall. Pinterest partnered with Instacart to enable shopping from pins and connect ad exposure to sales via closed-loop attribution. Our take: Social platforms are becoming full-funnel retail media environments. By fusing community context with purchase signals, these integrations aim to blend discovery and commerce in real time—paving the way for more data-rich, measurable campaigns.

Conversely, CPG’s total will trail retail by more than $33 billion. CPG has ranked second to retail every year since our tracking began in 2016, and those two industries will likely remain Nos. 1 and 2 for a very long time. CPG’s booming growth will recede next year. CPG digital ad spending growth in 2024 will beat the average across industries.