蘑菇AV

US advertisers will spend 82% of their media budget on digital in 2025, and allocate 66% of that budget to mobile, per a March 蘑菇AV forecast.

Ad spend continues to grow faster than the GDP, fueled in no small part by connected TV (CTV), retail media, social media, and search.

Even before implementation, companies like Temu and Shein cut US ad spending by up to 31%. Ad buyers are shifting toward domestic brands and performance-heavy channels with clearer ROI. Search and social are facing structural shifts. AI summaries in search are reducing clicks, while antitrust cases against Google and Meta threaten to break up long-standing ad ecosystems.

Temu and Shein both abruptly cut their US ad spend in April, per an April Sensor Tower report. 46% of Gen Zers would switch to less expensive brands and product alternatives if there are price increases related to tariffs, per a March Collage Group survey. 53.0% of consumers shop through Temu once a year, and 28.7% do so monthly, according to a February Omnisend survey.

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

Ad spending is looking shaky for many of the legacy formats across digital and traditional. New channels have arrived, however, and there are bright spots. This year could be rough, but 2024 is looking better.

This first-of-its-kind report compares and contrasts our US ad spending forecast with our US time spent with media forecast. It identifies unexpected incongruities between how marketers are spending ad dollars and where consumers are spending their time.

The majority (80.9%) of worldwide retail media ad spend will take place in China and the US this year, according to a March 2025 蘑菇AV forecast.

The intensity of the dispute reflects a shrinking pool of high-value media accounts, with agency holding companies鈥� share of US ad spend falling from 44.6% in 2019 to just 29.6% in Q1 2024 per Advertiser Perceptions. Our take: WPP鈥檚 loss of Mars should serve as a wake-up call.

With origins in performance advertising and a focus on efficiency, retail media is likely to remain resilient, even amid an economic upheaval exacerbated by US tariffs. However, impacts won鈥檛 be evenly felt, leaving some players better positioned to withstand headwinds.

This is the Q1 2025 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.