US ad revenue to reach $398B in 2025, driven by digital and retail media. Growth slows from 2024, but a 2026 rebound is predicted.
U.S. advertising revenue for media owners is expected to hit a record-high of $398 billion, a 4.6% increase over 2024 and a 6.9% increase when excluding cyclical spending. While ad revenue continues growing, it is slightly slower than in previous years. In 2024, growth was 9.9%. However, the economic forecast has been steadily improving, and the first quarter of 2025 saw a revenue increase of 9.1%, when excluding cyclical spending. Despite this growth, investors and consumers remain wary of the economic landscape as tariff concerns persist. Magna is the latest to cut its ad spending predictions following a similar move by WPP Media last week.
Magna’s “Global Ad Forecast ” shows that major live events continue to support traditional media outlets. Though traditional media ad revenue is expected to decline in 2025, it remains flat when adjusting for the Olympics and U.S. elections.
Digital continues to be a driver of growth, largely due to an increase in usage. Retail media networks are predicted to generate $163 billion in sales. Growth factors, such as surging e-commerce, increased engagement and an expanded presence in emerging markets, continue to fuel retail media networks. Amazon Ads is the largest retail media network in the U.S. and is estimated to be larger than all other U.S. networks combined.
Keyword search, the largest digital ad format, will grow 8% to $357 billion. Core search, which includes Google and Bing, is expected to increase 7% to $217 billion. Retailer search will jump 12% to $140 billion and short-form platforms, including YouTube and Twitch, will see a revenue expansion of 7% to $80 billion, per the report.
Ad-supported streaming has proven to be popular, especially as consumers look to cut costs. Ad revenue from premium long-form CTV streaming services, including Hulu and Netflix, makes up 15% of total long-form video advertising globally, accounting for $23 billion out of $155 billion. In certain markets, such as the U.K. and the U.S., it accounts for 20% to 25% of total category revenue.
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While the global ad market is seeing a slowdown in 2025, it is expected to recover in 2026 due to economic stabilization and major televised events, such as the FIFA World Cup, the Winter Olympics and the U.S. Midterms. The forecast calls for 2026 global ad sales to rise 6.3%, passing $1 trillion in revenue for the first time. The U.S. market will see a growth of 7.8% and pass $400 billion in revenue.
