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Over 72.6% of US social shoppers have seen shopping-related short-form videos, such as Instagram Reels, making them the most popular type of content in social media shopping​. YouTube is looking to capture a larger share in the competitive market.

°ä²¹²Ô²¹»å²¹â€™s ecommerce boom started in 2020 with 75.0% YoY sales growth that year. Retail is still riding the wave, bringing digital buying in Canada on par with similar markets like the US and UK. Online shoppers are now a lucrative audience for advertisers. As digital buyers spend more time and money online, retailers have created advertising networks to engage them.

As consumer spending slows, ad spending will shrink in kind. Fifty-four percent of global marketers are likely to reduce ad spend in 2025, per Nielsen, and 60% of advertisers who are cutting back plan to reduce spending by 6% to 10%, according to IAB. Tighter budgets may push advertisers to scale back on high-impact channels like CTV, where CPMs often exceed those of lower-cost alternatives.

Health and personal care is the fastest-growing ecommerce category in the US, per our July 2024 forecast, with projected growth of 14.2% YoY this year. Furniture and home furnishings ranks toward the bottom, with a projected 4.5% growth this year. But brand accounts may still be performing strongly on TikTok due to the popularity of DIY content.

Historically traditional channels are being digitized, theoretically opening the door to more robust measurement. At the same time, third-party identifiers are being ousted in favor of identity solutions that preserve consumers’ privacy.

It has accelerated ad spending with above-average growth every year since 2020, fueled by the rising importance of ecommerce and digital channels in the consumer journey. By comparison, online ad spending by most other industries we track has seen far greater fluctuations from year to year over the same period.

As Facebook loses relevance with younger audiences, D2C ad budgets for CPG brands are diversifying into emerging channels.

CEOs’ politics impact their brands: Hastings’ endorsement triggers Netflix boycott, drawing parallels with Musk's controversies impacting Tesla and X.

Pure-play advertising fuels US ad growth: Recurring events like the Olympics drive spending, but the market is steadily expanding even without them.

The pandemic ecommerce boom that drove online sales is over. But marketplaces will continue to expand their share of US retail ecommerce, contributing almost 40% of the $588 billion in US online sales growth that we forecast over the next five years.

The halo effect of that event helped Tubi surpass its head-to-head rival Pluto TV to earn second place among free premium video streaming services in 2022, behind market leader The Roku Channel. We expect Tubi to stay ahead of Pluto TV in 2023 and for the remainder of our forecast period, through 2027. Paramount+ hits a new peak.

B2B ad spending sees a strong rebound: LinkedIn leads, with finance and retail sectors boosting growth.

Advertisers using the Performance+ suite have seen a 64% reduction in cost per action, a 30% increase in conversion rates, and a 1.8 times return on ad spend. Pinterest is also rolling out:. Personalized Promotions tools to help advertisers offer discounts in markets including the US, UK, Canada, Australia, France, and Japan.

Influencer marketing—paying a content creator to promote a product or service on their own platform—is a growing ad channel in its own right, but issuers can take advantage of those partnerships across other channels too.

Two channels will drive this trend in 2025:. Paid social. In 2024, US enterprise marketers committed over one-third (37%) of their influencer budget to paid media amplification, per a February 2025 report from Linqia. Because those dollars are going to social platforms, we count that as US social network ad spending, which we expect will surpass $100 billion for the first time this year. Retail media.

Amid privacy changes and macroeconomic headwinds, social media will be the channel hurt most by the digital advertising downturn. For 2023, we have reduced our US social network ad spending forecast by $16.21 billion.

69% of US agency and marketing decision-makers measure the success of retail media campaigns through return on ad spend (ROAS) or incremental ROAS, according to July 2024 data by Quartile and NewtonX.

On today's episode, we introduce you to the FAST (free ad-supported streaming TV) services (e.g., Tubi, The Roku Channel, and Pluto TV), explain how they became so popular, and look ahead to see what their ceiling is. "In Other News," we talk about whether the advertising space is on the mend and how significant of an ad player Microsoft is. Tune in to the discussion with our analyst Ross Benes and director of Briefings Jeremy Goldman.

Paid search ad spend is increasing, but search ad impressions are declining. Paid search ad spend grew 4.0% YoY in Q4 2023, according to data from Skai. But ad impressions declined by 15.0% YoY in the same quarter. In the US specifically, search ad spend will increase by 11.1% this year to reach a total of $124.59 billion.

US digital ad spend will cross $300 billion for the first time this year, per our March 2024 forecast. That’s good news for advertisers, but it also means it’s harder to stand out. While exposing consumers to a brand multiple times across channels is vital to brand awareness, hitting consumers with the same creative over and over again or bombarding them with emails and text messages can hurt marketing impact. Here are five key stats on marketing fatigue across connected TV (CTV), email, and messaging.

The company's position as a buy-side platform allows it to offer relatively objective advice to brands on where to allocate their ad spending across various premium content providers.

Why it matters: Retail media and commerce media, which focus on optimizing shopping experiences both online and offline, has become a critical area for ad spending.

While the retail media opportunity is massive, it requires reaching consumers across a growing number of channels and adapting in real time. Google—which receives billions of searches daily—can help capture new demand, and turn that demand into purchases, by bringing in valuable first-party data to a brand’s retail media program.

At a time when creative quality drives nearly 60% of purchasing intent, the ability to produce insights-driven creative that’s optimized across channels, audiences, and goals is more important than ever.