Only a quick 12 months in the past, advert forecasters and businesses alike optimistically predicted that advert spending would considerably enhance in 2025. However rather a lot has modified for media businesses (and companies worldwide) since then.
President Donald Trump’s tariffs have already affected shopper spending, and there’s lingering uncertainty amongst company executives about how tariffs will proceed to influence budgets. Advertisers like Kimberly-Clark have begun to tighten their belts. The private care firm not too long ago mentioned that it had lower its general advertising spend 10.8% in contrast with final 12 months’s second quarter.
IPG’s Magna International, which points quarterly ad-spend forecasts, mentioned in June that it had adjusted its 2025 development forecast downward by 1.2 proportion factors attributable to much less optimistic financial forecasts and lowered enterprise confidence since December 2024. It now tasks international promoting revenues for media homeowners to achieve $979 billion in 2025, up solely 4.9% compared with 2024.
Likewise, in June, WPP Media revised its international advert income development charge downward to six.0% from a beforehand projected 7.7% enhance, a 13.7 proportion distinction. It cited disruptions to international commerce and continued deglobalization pressures weighing on promoting funding as causes for the change. WPP Media now expects international promoting income to achieve $1.08 trillion in 2025.
Whereas advert spending is down, AI instruments have continued to quickly evolve and turn out to be extra nuanced. The most recent iteration gaining media businesses’ consideration is agentic AI. Businesses informed Digiday that their shoppers are keen to make use of this new expertise regardless of being unclear on what agentic AI can do or the way it may have an effect on inside workflows.
“That’s going again to the place we discover the efficiencies,” mentioned Andrea Montano, evp of technique, insights and connections at Meeting International. “It’s about the way you make smarter selections extra rapidly, to have the outcomes that you really want and be compensated accordingly. There might be some shifts with how we’ve business agreements with shoppers on account of AI, which might be unimaginable — useful on each side.”
Bearing all of this in thoughts, Digiday’s 2025 media company report examines the present and future state of media businesses from the views of whole shopper spending and spending by media channel. It additionally delves into the influence of agentic AI on the company panorama.
To evaluate the present state of media planning and shopping for and to know which channels shoppers are investing in now and the place they are going to be spending sooner or later, Digiday+ Analysis collected responses from 96 company professionals in a survey fielded in July and August 2025.
For extra trade perception, Digiday hosted a spotlight group of seven senior media company executives who oversee media funding at holding company-owned and unbiased media businesses to collect first-person accounts of shopper spending. Businesses and networks that participated within the focus group had been:
- Meeting International
- Horizon Subsequent
- IPG Mediabrands
- Mediahub
- Mile Marker
- Novus
- PMG
03
Shoppers tighten 2025 budgets amid U.S. financial issues
Amid issues over tariffs and the U.S. financial system, media company shoppers are tightening their budgets in 2025, Digiday’s survey discovered. Practically half of respondents (45%) mentioned shoppers decreased their budgets this 12 months. Lower than one-third of businesses mentioned that budgets remained the identical (32% of respondents) and fewer than one-quarter mentioned budgets elevated (22% of respondents).
This 12 months’s lower in shopper spending is a notable change from the outcomes of final 12 months’s company report, when 39% businesses informed Digiday their shoppers had elevated their budgets in 2024.
Amongst respondents who mentioned budgets have decreased in 2025, although, greater than half (53%) mentioned budgets have decreased by lower than 20%.
These conservative finances decreases could replicate a tempered method to the unfavorable influence of tariffs and inflation on client spending. The specter of tariffs, whether or not they’re in the end put in place or not, can result in market confusion, client hesitancy and pullbacks in media spend.
Executives who participated in Digiday’s focus group famous that spending has been down particularly amongst shoppers whose merchandise are affected by governmental modifications to public well being packages and new tariffs.
“Now we have insurance coverage [clients] and we’ve gotten some fairly huge cuts as a result of we’ve authorities funding for Medicare and Medicaid,” Meeting International’s Montano mentioned. “That was type of a punch within the intestine for This fall when you’ve got an open enrollment.”
Drew Corry, svp of strategic funding and market technique at IPG Mediabrands, mentioned spending by auto makers is down as effectively. “All the class, from our perspective, is affected by tariffs,” Corry mentioned. “We’ve acquired overseas automakers, however from what I perceive, on a macroeconomic perspective, even the American automakers had been affected by it as effectively.”
Natalee Cecil Geldert, head of brand name media at PMG, mentioned that some shoppers are adjusting budgets on a day-to-day foundation. “From a efficiency channel perspective, we’re virtually within the spirit of day buying and selling,” Geldert mentioned. “What are hourly, if not each day, reads on efficiency and the enterprise’ backside line, and calibrating budgets in actual time to the place we’re seeing success.”
However not all shoppers are pulling again on spending. A number of focus group individuals famous that spending has been both flat or up barely in 2025 for classes like monetary companies, journey, expertise and prescription drugs. The time of 12 months can even have an effect on spending, in response to Geldert.
“Heading into Q3 and priming for This fall, retail is beginning to see an uptick, particularly with new product stock being launched previous to the vacations,” Geldert mentioned. “And, coming into the sports activities season, we’re beginning to see issues choose up — MLB coming into the top of the season and playoffs, and NFL and faculty soccer starting to kick off.”
Montano mentioned that, in the end, most shoppers would favor to spend persistently all through any given 12 months. “We’re seeing loads of shoppers really feel susceptible with their seasonality,” she mentioned. “Shoppers who make most of their cash within the fourth quarter wish to flatten out that seasonality. I might see a world the place not any single quarter might be a disproportionate spend within the close to future, simply due to the way in which that I feel shoppers wish to function.”
04
Shoppers are hesitant about 2026 spending, however optimistic for 2027
Simply as shoppers had been cautious with 2025 spending, company respondents informed Digiday they anticipate to take a equally conservative method in 2026. Practically half of survey respondents (48%) mentioned that they anticipate shoppers’ budgets to stay the identical in 2026. Compared, greater than one-third of respondents (38%) mentioned they anticipate budgets to extend in 2026, whereas 15% mentioned they anticipate to see finances cuts.
IPG Mediabrands’ Corry mentioned that, whereas spending might even see a slight uptick subsequent 12 months due largely to international sporting occasions, general development might be modest. “It ought to be up, nevertheless it’s going to be artificially pushed by issues just like the World Cup and the Olympics,” he mentioned. “These tend to push funding up. The most effective we will inform, it seems to be like it could reasonable development in the event you took that out.”
“There are nonetheless loads of uncertainty and unanswered questions on main international locations because it pertains to tariffs,” Corry added. “We’ve seen some customers and a few firms pull ahead spending, however on the again half, whether or not or not that’s wanted, the jury continues to be out.”
“If the upfront is any indication, the marketplace for 2026 seems to be barely stronger than 2025,” mentioned Mike O’Connor, evp and head of funding at Horizon Subsequent. “Broadly talking, it feels a bit of rosier, a bit of sunnier than 2025.”
Survey respondents agreed. Amongst respondents who mentioned budgets will enhance in 2026, the bulk (62%) mentioned will increase might be within the conservative 10%-19% vary.
Meeting International’s Montano mentioned businesses’ expectations for shopper spending in 2026 could range relying on whether or not their shoppers are nationwide or worldwide manufacturers. “A part of it additionally is dependent upon your shopper roster — multiregion shoppers, or true international shoppers,” Montano mentioned. “We’re a bit of bit extra optimistic [about 2026 spending] as a result of the worldwide GDP is wanting a bit stronger. If that would proceed, I feel within the U.S., we’ll be a bit of bit extra bullish about it.”
Curiously, Rob Davis, president and CMO at Novus, and Scott Shamberg, president and CEO at Mile Marker, each informed Digiday that shoppers have mentioned their 2026 budgets gained’t enhance a lot, however that they anticipate them to spend huge in 2027.
“A few new enterprise pitches have famous the 2026 finances is X [amount], however the 2027 finances is already projected to be X instances, plus 50%,” Davis mentioned. “[The message is] ‘we’re nonetheless going to attend and see, however then the following 12 months — 18, 24 months out — is when [we’ll spend].’ It was virtually like [hearing], ‘our budgets aren’t that huge, however belief us, they’re going up after we assume issues will actually settle, which is the next 12 months.’ I had by no means seen that earlier than.”
“We’ve seen that too, and I had by no means seen that earlier than both,” Shamberg added. “I’m decoding that as, ‘I do know the finances for subsequent 12 months is just not precisely what you’ll need, however the subsequent 12 months, I swear, goes to be enormous.’”
05
Spending set to speed up in digital channels in 2026
Digital channels would be the huge winners relating to the place shoppers enhance their spending in 2026, in response to Digiday’s survey outcomes. The highest channels wherein businesses mentioned they anticipate to see finances will increase in 2026 are: streaming video and CTV (72% of respondents); social media (66% of respondents); search advertising (55% of respondents); and retail media (45% of respondents).
In periods of financial uncertainty, digital channels are comparatively straightforward to scale up, and simply as straightforward to tug again on. Additionally they are typically inexpensive than conventional channels.
The identical intuition driving shoppers’ whole finances fluidity can also be guiding the place they spend. Shoppers wish to keep nimble and never get boxed in, in response to Mile Marker’s Shamberg. “What I’m listening to [from clients], and it goes again to the financial uncertainty, is how a lot flexibility can we construct into what we’re speaking about committing,” Shamberg mentioned. “There was uncertainty going into 2025 definitely, however going into 2026 that’s a good larger ask up entrance. … They’re in search of as a lot flexibility as they will probably get.”
“As budgets turn out to be extra digital, the place there’s inherently extra flexibility … realizing that a lot of your {dollars} now are in digital channels which might be in the end versatile has given some sense of consolation in a market that has been, from a monetary standpoint, so tumultuous,” added Horizon Subsequent’s O’Connor. “There could also be uncertainty and concern, however as a result of we do have flexibility to optimize on an ongoing foundation, the buyer shifts in the direction of digital and the budgets that adopted, make that a bit of bit extra manageable.”
Shoppers are additionally adjusting media channel spending due to the present political local weather, in response to Mile Marker’s Shamberg. “We’re getting reputable questions from our direct mailers about one, the price of postage, and two, what’s the future state of the USPS,” Shamberg mentioned. “Is that going to get privatized or go away? Political influence to these varieties of questions and choice making trickle down into, ‘do I pull my junk mail, spend again, go extra into digital?’”
06
Shoppers are bullish on streaming and CTV as prices lower
Among the many media channels included in Digiday’s survey, streaming and CTV was the No. 1 channel wherein businesses mentioned they anticipate shoppers to extend spending subsequent 12 months. Practically three-quarters of respondents (72%) mentioned that they anticipate shoppers to extend their streaming and CTV spend in 2026.
Over the previous 12 months, advert prices have come down on streaming and CTV platforms — pushed by Amazon’s launch of its Prime Video ad-supported tier — which seemingly accounts for extra advert {dollars} shifting into the channel. Netflix CPMs fell from $42.14 in Q1 2024 to $31.05 by Q2 2025, for instance. And Amazon CPMs slid from $35.25 to $28.01 throughout the identical time interval.
“Consumption has grown tremendously and there are extra advert alternatives with Netflix and with Amazon,” mentioned Horizon Subsequent’s O’Connor. “Whereas demand has been there, pricing has been extra favorable from a purchaser’s perspective. … All of us proceed to see streaming pricing come down for essentially the most half, largely attributable to extra choices from a provider perspective.”
“The provision has caught up, as has the demand,” IPG Mediabrand’s Corry agreed. “We noticed CTV as a spot loads of our shoppers needed to take a position on this 12 months. You possibly can nonetheless see the erosion on the linear aspect, however loads of that was picked up on the digital aspect.”
Shoppers even have a greater understanding of CTV promoting’s advantages than prior to now, in response to Mile Marker’s Shamberg. “There’s extra training on the a part of the manufacturers for CTV, and understanding what they will get — not simply from a listing perspective, however from a measurement perspective — and from new applied sciences like [elastic container registry] ECR,” Shamberg mentioned. “Earlier than, [CTV] was a vibrant, shiny object. Now, [clients are asking] ‘what a part of my media combine ought to it’s.’”
Streaming platforms have continued to extend the quantity of dwell sports activities programming they carry as effectively, which appeals to shoppers who wish to attain large sports activities audiences. Nevertheless it additionally creates competitors within the market.
“There’s much more alternative than used to exist for shoppers that sometimes felt like they couldn’t break by means of with sufficient which means and finances,” mentioned Stephan Indich, evp and head of built-in funding at Mediahub. “On the identical time, as a result of the sports activities market is so scorching, the demand is there. Shoppers who’ve larger budgets are coming in sooner to lock in what they need.”
“This 12 months has been wild,” Indich added. “It’s been good to see that enhance in curiosity. However, in fact, it makes for a really risky market.”
Meeting International’s Montano mentioned she’s additionally seeing a crossover between streaming and CTV and retail media promoting when it comes to each client information assortment and the usage of interactive shoppable adverts. For instance, Roku partnered with Instacart on shoppable retail media motion adverts. Along with offering first-party buyer information for advert focusing on, the partnership helped CPG manufacturers measure whether or not their adverts drove gross sales on the grocery supply platform.
Retail media was the fourth-most vital media channel wherein businesses mentioned that they anticipate to see elevated shopper spending in 2026 — 45% of survey respondents mentioned this.
“I like how now it’s [CTV] being linked to partnerships with retail media networks,” Montano mentioned. “It’s the collaboration of the linked TV … utilizing that shoppable information. It’s on this candy spot as a result of, as a strategist, I take into consideration the way it flexes as model fairness and likewise flexes right down to drive efficiency. Now, in case you have the very best of each worlds, it’s going to proceed to exponentially develop, which might be thrilling to see and, when it comes to utilizing that information, will repay for shoppers.”
07
Shoppers have questions on agentic AI
At trade occasions from Cannes to the Digiday Media Shopping for Summit, the subject of AI has permeated executives’ conversations over the previous 12 months. By now, most company executives and their shoppers are conversant in generative AI, which continues to steadily infiltrate extra corners of the media enterprise — creating efficiencies throughout content material, manufacturing, analysis, information and media planning and shopping for. However far fewer shoppers are conscious of AI brokers and the way they can be utilized inside media shopping for.
Not like conversational generative AI instruments like chatbots, AI brokers can take motion on customers’ behalf. They’ll full duties, work together with different software program methods, make selections and act independently. Nevertheless, when Digiday requested businesses about their shoppers’ familiarity with agentic AI, practically three-quarters of company respondents (73%) mentioned their shoppers don’t perceive what agentic AI is and the way it may be used to optimize advert campaigns.
Digiday’s focus group individuals mentioned that shoppers have questions on how AI brokers are made, what they’re able to doing and what they will’t do.
“One [question] is simply how and the place are you [the agency] utilizing it,” Novus’ Davis mentioned. “How are you going to cut back charges by saving time and power? How is what you’re doing going to make us smarter than the competitors? Then, there’s a really particular query that I don’t assume I’ve talked to a shopper within the final 4 to 6 weeks that they haven’t requested, ‘how is it impacting each paid and natural search?’”
Davis mentioned some shoppers are seeing website site visitors declines of as a lot as 30% and they’re attributing many of the drop to agentic AI’s results on search outcomes. For instance, Google’s AI Overviews function has been credited with tanking search site visitors to writer and model websites because it was launched within the U.S. on Might 14, 2024. The function reveals customers AI-generated summaries on the high of their search queries, forward of hyperlinks to articles and web sites. And, in response to analysis revealed in December by consultancy Bain, 80% of customers resolve 40% of their searches with out going additional than the search outcomes web page.
Entrepreneurs fear that if natural site visitors’s being impacted, the search site visitors they attempt to appeal to with paid media spend may additionally be at risk. Nevertheless it’s not all dangerous information for shoppers relating to agentic AI. AI search guests themselves convert at 4.4 instances the speed of common natural search guests, in response to Semrush.
And Mediahub’s Indich mentioned dips in site visitors brought on by agentic AI are forcing businesses and their shoppers to assume outdoors of the field relating to search content material. “The nice factor is that when shoppers are seeing that it’s affecting their site visitors then they’re additionally extra centered on what precise content material is being pulled in when they’re sure queries,” Indich mentioned. “How do they begin to wrap their heads round [gaining] extra management over that to ensure it’s the precise info? … How can we take into consideration extra of a curated setting that shoppers can have a hand in, and the way can we assist them? It’s difficult. … However that’s the information development. That’s a part of the training curve.”
Regardless of their shoppers’ lack of understanding about agentic AI, practically half of respondents to Digiday’s survey (47%) mentioned their shoppers are contemplating utilizing agentic AI within the subsequent 12 months. This can be as a result of entrepreneurs are desperate to experiment with the newest iteration of AI gaining trade consideration. Nevertheless, the adoption of agentic AI is choosing up tempo throughout media businesses.
- Practically half of businesses (45%) mentioned shoppers have decreased their media budgets in 2025 — a notable change from final 12 months, when 39% businesses informed Digiday their shoppers had elevated their budgets in 2024. Lower than one-third of businesses mentioned that budgets both remained the identical (32% of respondents) or elevated (22% of respondents) in 2025.
- Amongst respondents who mentioned budgets have decreased in 2025, greater than half (53%) mentioned budgets have decreased by lower than 20%. Inflation and the specter of tariffs usually result in market confusion, client hesitancy and pullbacks in media spend.
- Businesses anticipate the same conservative method to shopper spending subsequent 12 months. Practically half of survey respondents (48%) mentioned that they anticipate shoppers’ budgets to stay the identical in 2026. A couple of-third of respondents (38%) mentioned they anticipate budgets to extend in 2026, whereas 15% mentioned they anticipate to see finances cuts.
- Digital channels would be the huge winners relating to the place shoppers enhance their spending in 2026. Businesses chosen CTV (72% of respondents), social media (66% of respondents), search advertising (55% of respondents) and retail media (45% of respondents) as the highest 4 channels wherein they anticipate to see elevated spending.
- Company shoppers are shifting extra advert {dollars} into streaming video and CTV attributable to CPM price reductions. Many platforms have additionally elevated the quantity of dwell sports activities content material they broadcast, which appeals to shoppers who wish to attain these large sports activities audiences.
- Whereas generative AI continues to steadily infiltrate extra corners of the media enterprise, agentic AI stays a thriller to many consumers. Practically three-quarters of company respondents (73%) mentioned their shoppers don’t perceive what agentic AI is and the way it may be used to optimize advert campaigns.
- Regardless of their shoppers’ lack of understanding about agentic AI, practically half of businesses (47%) mentioned their shoppers are contemplating utilizing agentic AI within the subsequent 12 months. However, shoppers are frightened about agentic AI’s results on search outcomes.
