A new report from Ebiquity and the World Federation of Advertisers (WFA) indicates a growing shift among global advertisers towards performance marketing in 2025, driven by retail media and connected TV.
The 2025 Media Budgets Survey highlights plans for increased investment in these areas, with 50% of respondents intending to raise their media budgets.
The survey of 134 global brand leaders, including seven of the world’s top 10 global advertisers, represents over $66 billion in annual ad spend. The findings reveal that 42% of advertisers plan to increase their share of performance marketing next year, compared to just 24% focusing on branding efforts. This marks a reversal from 2024, where 21% prioritised performance marketing and 35% focused on branding.
Addressable and connected TV are seen as key growth areas, with 78% of respondents planning to increase their investments in these channels. Similarly, 75% aim to boost spending in retail media. Meanwhile, traditional linear TV and digital display are expected to see declines, with 50% and 31% of advertisers, respectively, planning reductions in these areas.
Shift Towards Short-Term Results
Nick Waters, CEO of Ebiquity, interprets the shift towards performance marketing as a reflection of advertisers prioritising immediate results over long-term brand building. WFA CEO Stephan Loerke describes retail media as a “transformative growth vehicle,” but warns of potential risks to the long-term health of brands as the focus on short-term outcomes continues.
Loerke also emphasised the importance of addressing these challenges: “This looks set to continue next year, creating opportunity but also, potentially, some risk for the long-term health of brand building as we further embrace performance marketing.”
Regional Variations in Confidence
The report identifies regional differences in advertiser confidence. In Europe, the Middle East, and Africa (EMEA), optimism is rising after challenging years, while North American brands remain cautious. Waters attributes this to economic and political uncertainty, including recessionary indicators in the U.S. and uncertainty stemming from the first year of a new administration.
Conversely, the improving sentiment in Europe signals a recovery in advertiser confidence. “It is encouraging to see an upturn in European sentiment following a difficult few years,” Waters said.
AI to Drive Media Transformation
Artificial intelligence is expected to significantly influence media operations, with 70% of survey respondents anticipating moderate to substantial changes in areas such as campaign optimisation, dynamic pricing, and creative processes. Loerke highlighted the need for updated measurement frameworks to address the complexities of an increasingly fragmented media ecosystem.
“The next wave of transformation may come from AI – an area from which the impact can still only be loosely gauged,” Loerke said.
Transparency and Sustainability in Focus
The report also finds progress in media industry transparency compared to 2023. Additionally, sustainability is set to become a higher priority for media campaigns in 2025, reflecting a broader industry trend towards environmental responsibility.
This evolving landscape presents both challenges and opportunities for advertisers as they navigate the shifting balance between performance marketing and long-term brand-building efforts.
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