IAB expects digital advertising growth to slow considerably this year

IAB Anticipates Significant Slowdown in Digital Advertising Growth for 2023

The most recent IAB forecast predicts a 7.3% rise in U.S. digital advertising spending compared to last year’s totals. This figure represents a significant decline from the 11.8% forecast expected for 2024.

Retail media networks are anticipated to grow by 15.6% year-over-year, while Connected TV (CTV) is projected to experience a 13.8% growth, and social media is expected to see an 11.9% increase, as detailed in the report titled “2025 Outlook: A Snapshot into Ad Spend, Opportunities and Strategies for Growth.”

Slowdown Ahead. The analysis suggested that the advertising landscape in 2024 will be driven by major events, such as the Paris Olympics and various national and state elections.

This year, advertisers are likely to adopt a more selective approach, concentrating on emerging high-growth areas including RMNs and CTV.

“This report clearly indicates that budget allocations are increasingly being directed towards zones where consumers, commerce, and video intersect — allowing advertisers to harness the combined power of visual and auditory engagement, while facilitating consumer interactions and transactions,” remarked IAB CEO David Cohen in a statement.

Channel Growth Insights. The channels projected for the highest growth in 2025 are those that provide video and comprehensive opportunities spanning branding to commerce.

Explore Further: Social media and influencers: Predictions for 2025

Below is an analysis of growth per channel.

IAB 2025 Projections By Channel
Image: IAB, 2025 Outlook: A Snapshot into Ad Spend, Opportunities and Strategies for Growth.

Explore Further: Retail media networks on the rise: Predictions for 2025

Advertiser Focus Areas. According to Mediaocean’s 2025 Advertising Outlook Report, the top priorities for advertisers are performance-driven media and robust measurement and attribution tools.

Sixty-two percent of marketers highlighted the importance of performance-driven paid media for their strategies. Meanwhile, 50% identified measurement and attribution as essential.

Brand advertising ranked third at 45%, a decrease from 57% in a previous survey conducted in summer 2024. This latest survey engaged marketers with the same questions in November 2024.

GenAI in Media Planning. The IAB study identified a growing trend of marketers utilizing GenAI tools for media planning, with 42% currently employing this technology for either planning or activation. An additional 36% are in the exploratory phase.

Mediaocean categorized GenAI as the primary trend marketers are observing for 2025. The following are the main applications of GenAI among respondents:

  • Data analysis (47%).
  • Market research (38%).
  • Copywriting (32%).
  • Image creation (22%).
  • Customer support (14%).

Why This Matters. It’s clear that following an exceptional year in 2024, expectations are moderating. With intense competition, marketers are targeting cutting-edge digital ad platforms that drive consumer engagement. Consequently, traditional mediums like linear television are likely to experience slower or even negative growth, even though they remain integral to a well-rounded media strategy going forward.

For further details on the IAB study, click here. (Note: Membership is required to access the complete report.)

Email:










See terms.



OptiPrime – Global leading total performance marketing “mate” to drive businesses growth effectively. Elevate your business with our tailored digital marketing services. We blend innovative strategies and cutting-edge technology to target your audience effectively and drive impactful results. Our data-driven approach optimizes campaigns for maximum ROI.

Spanning across continents, OptiPrime’s footprint extends from the historic streets of Quebec, Canada to the dynamic heartbeat of Melbourne, Australia; from the innovative spirit of Aarhus, Denmark to the pulsating energy of Ho Chi Minh City, Vietnam. Whether boosting brand awareness or increasing sales, we’re here to guide your digital success. Begin your journey to new heights with us!

Similar Posts