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US advertising market
Economy

Magna: the US advertising market continues to grow steadily

06.10.2025
2 min read

The US advertising market will grow by 7.8% in 2026

The US advertising market remains key to the global industry. Analysts predict its growth. At the same time, however, expectations for the global market have declined slightly.
Magna presented its updated forecast for 2025. According to the new data, global media owners’ revenue will total US$979 billion. In December, analysts estimated it to be 1.2% higher. Despite the downward revision, revenue is expected to grow by nearly 5% compared to 2024.
Global economic processes continue to put pressure on the sector. This is especially noticeable in the traditional channels segment, including television, radio, and print media. Their combined revenue may decline by 3% to US$264 billion. Meanwhile, the digital segment is showing steady growth. Revenue from online promotions is expected to increase by 8% to US$715 billion. The growth structure in this area is as follows:
– advertising in search engines and retail media will grow by 8% to US$357 billion;
– social media promotion will add 11% and amount to US$242 billion;
– short video content will bring in US$80 billion, which is 7% more than in 2024.
Digital platforms will continue to dominate. They enable companies to swiftly expand advertising campaigns. Additionally, transparent reporting makes these channels optimal for limited budgets.US advertising market grow

Drivers of the US advertising sector

Media revenue in the US advertising market will reach a record high in 2025. Analysts forecast revenue of US$398 billion. This is 4.6% higher than in 2024. Excluding cyclical expenses, growth will be around 7%. Although revenues continue to grow, the pace is slowing. For instance, revenue increased by 10% in 2024. In the first quarter of 2025, however, the growth rate was just over 9%. Economic instability is forcing market participants to exercise caution.
Digital technologies remain the main driver of growth. In 2025, retail media networks’ profits will reach US$163 billion. This surge comes from:
– the e-commerce market growth.
– increased engagement;
– expansion of presence in emerging markets.
Amazon Ads remains the largest retail media network. Its scale exceeds that of all its competitors in the US market combined.
Keyword searches remain the primary advertising format. It will grow by 8% by the end of 2025, reaching US$357 billion. Revenue in the search engine segment, including Google and Bing, will increase by 7% to US$217 billion. Retail search revenue will rise 12% to $140 billion. Advertising in short video formats, including YouTube and Twitch, will generate more than US$80 billion. Growth for the year will be 7%.
Despite these positive figures, analysts are noting a decline in global demand for advertising services in 2025. However, the market will begin to recover in 2026. This recovery will be driven by major global events, such as the soccer championship, the Olympic Games, and the US midterm elections.
According to forecasts, the global advertising market will exceed US$1 trillion in 2026. At the same time, the US market will reach US$400 billion, growing 7.8%.

Tags: Economy
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