Magna has published the latest update of its Global Ad Forecast, projecting that global advertising revenues will reach US$979 billion in 2025, marking a 4.9% increase from 2024.

The forecast has been downgraded 1.2 percentage points since the agency's December update, with EVP of Global Market Research Vincent Létang pointing to "deterioration in the economic outlook and a decline in business confidence".

"So far, the slowdown has been relatively modest. Digital media, in particular, performed better than expected in the first quarter. Magna believes that the marketing industry has learned important lessons from the COVID period—recognizing the value of maintaining consistent communication and adopting balanced media strategies, especially during times of consumer uncertainty," he said.

Magna projects a decline in Traditional Media Owners (TMO) ad revenues, which are expected to fall by 3% to US$261 billion due to ongoing economic uncertainty. Though, this will be offset by an 8% rise in ad sales, reaching US$709 billion for Digital Pure Players (DPPs), thanks largely to advancements in AI innovation, increased competition in e-commerce, and the expansion of retail media networks. Search and Retail Media ads are expected to grow by 8% to US$359 billion, while Social Media ad sales are projected to increase by 11% to US$239 billion.

The Asia Pacific (APAC) advertising economy experienced a 7.9% growth in 2024, reaching US$288 billion, with China leading the region's ad revenues. However, APAC's advertising growth is expected to slow to 4.5% in 2025, influenced by trade wars and geopolitical uncertainty. Despite this slowdown, digital advertising revenues in APAC are projected to account for 82% of total budgets by 2029, up from 76% in 2024.

The global ad market is expected to re-accelerate in 2026, driven by major events such as the Winter Olympics and FIFA World Cup. Meanwhile, the International Monetary Fund (IMF) has reduced its 2025 global economic growth forecast to 2.8%, reflecting a general slowdown in economic activity.

CEO of IPG Mediabrands APAC, Leigh Terry, said: "The continued resilience and dynamism of the APAC advertising economy in 2024, growing by nearly 8%, reinforces the region’s strategic importance for global brands. As digital platforms increasingly become the primary gateway to consumers, especially in mobile-first markets, advertisers must evolve their strategies to meet where attention is shifting. While the outlook for 2025 is tempered by macroeconomic and geopolitical uncertainty, the underlying fundamentals remain strong. APAC’s digital transformation is far from complete, and for brands willing to invest smartly, the region still offers outsized growth opportunities."

Ad-supported streaming is experiencing rapid growth, with ad revenues now constituting 15% of total long-form video advertising revenue worldwide. Digital Pure-Play media owners are projected to reach US$709 billion in 2025, accounting for 73% of total ad sales. The United States is expected to remain the largest advertising market in 2025, representing 41% of global ad spend.

Global automotive advertising is anticipated to decline by 2% in 2025, with spending on traditional media channels expected to decrease by high-single digits.

Chief Investment Officer at IPG Mediabrands APAC, Paul Waller, said: "With fewer cyclical events in 2025, the projected global growth of +4.9% in 2025 is still noteworthy. As MAGNA reports, digital continues to be the engine of expansion and in APAC will represent 82% of total budgets in by 2029. Powered by mobile-first consumers and retail media innovation, especially in China, strategic allocation to these dynamic channels will be critical for brands navigating future complexities, ensuring sustained ROI and market relevance in an increasingly digital first APAC."