蘑菇AV

This is the first installment of our quarterly 鈥淎d Spending Benchmarks鈥� series, which helps ad buyers and sellers calibrate their spending and revenue mix against the market.

This is the first installment of our quarterly 鈥淎d Spending Benchmarks鈥� series, which helps ad buyers and sellers calibrate their spending and revenue mix against the market.

鈥淕oogle will account for over half of search ad spending this year, but Google's not the perfect fit for every query that every person could ever ask,鈥� our analyst Evelyn Mitchell-Wolf said on a recent 蘑菇AV webinar. 鈥淚t never has been, and now consumers are also going elsewhere to satisfy their search needs.鈥�

I'd say brands want more creative ways to spend their retail dollars than just product search ads. So I like to think of it as kind of a glow up for retail media and then marketers on the influencer side just get more accountability for their dollars and a chance to scale their influencer programs. Sarah Marzano (13:52):.

At $22.25 billion, digital advertising is advancing unabated in Latin America this year. Double-digit gains in video and retail media ad spending, as well as improving economic conditions in Brazil and Mexico, will help take the regional market to new heights. Here are the latest trends you need to know.

蘑菇AV analysts highlight four trends that will affect digital advertising in 2025.

In addition, concerns about generative AI鈥檚 impact on search advertising are having a dampening effect. Amazon has entered the mix and is steadily growing share. The boom in retail media spending has boosted Amazon鈥檚 ad revenues. As such, the duopoly has become a triopoly, and Amazon鈥檚 strong ad business will keep the triopoly鈥檚 share at around 66% throughout the forecast.

From a budget perspective, social search advertising is still nascent. While social search ad formats are growing, they鈥檙e not eating away at traditional search budgets quite yet, according to interviews we conducted with industry experts. Across top platforms, search advertising is limited without functions like keyword targeting and the ability to buy these ads on their own.

Search advertising was never as attractive in China as it was in the US, thanks to the relative weakness of industry leader Baidu. Strict government regulation and relatively poorer search functionality have limited Baidu鈥檚 ceiling as an ad publisher. Social media was always constrained.

This year, Google鈥檚 search ad revenues will reach $62.87 billion, per our forecast. By 2026, its search ad business will be more than 10 times the size of Microsoft鈥檚. Some 71% of adults worldwide think generative AI will have a very or somewhat large impact on search engine companies, per data from YouGov and Reuters Institute for the Study of Journalism at the University of Oxford.

While it鈥檚 still one of the two most dominant companies in digital advertising (alongside Meta), its share of the search advertising market will slip below 50% for the first time in over a decade, per our forecasts, a sign that increased competition and the rise of AI are threatening its dominance.

Retail media ad spending will be increasingly responsible for digital advertising鈥檚 double-digit growth. By 2028, the powerhouse channel will grow to represent nearly 1 in every 3 ad dollars spent.

While Gemini and cloud services drive record revenues, competition and global regulatory actions threaten its monopoly, particularly in search and advertising ecosystems

Total media ad spending growth has stabilized, and digital ad spending is set for an extended period of low double-digit annual increases. Amazon, TikTok, and Instagram will be the main growth drivers this year.