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How Much Do Companies Spend on Advertising in 2025?
Get the latest advertising budget benchmarks for 2025: global spend, % of revenue by company size, the shift to digital (social, retail media, creators), and practical tips to plan your own budget.
Quick Answer
- Global ad spend (2025): approaching $1T.
- Typical company budgets: 5%–12% of annual revenue (more for aggressive growth/new markets).
- Digital share: ~68%–75% of total spend; social, search, retail media, and creator channels are leading growth.
1) Global Advertising Landscape in 2025
- Worldwide ad spend expected near $992B, up ~4.9% YoY (dentsu).
- Digital projected around $678.7B (~68.4% of total) (dentsu).
- U.S. social media ad spend heading toward $95.7B (Publift).
- Creator economy payouts estimated at $185B in creator earnings (Business Insider).
2) Advertising Budgets as a Percentage of Revenue
Most companies benchmark advertising as a share of revenue and adjust by growth goals and competitiveness.
Typical Ranges
- Small businesses: ~10% of revenue (Gartner).
- Larger firms: ~12% of revenue (Gartner).
- Aggressive growth / new launches: up to 20–30% (SpiderAF).
Trendline
According to the 2025 CMO Survey, marketing budgets rose from 2.6% of revenue (Fall 2023) to 5.8% (Fall 2024), with expectations near 8.6% (SoPro).
Industry intensity matters (MediaMax, SpiderAF): high-competition categories (e‑commerce, finance) trend higher than low-intensity verticals.
3) Digital vs. Traditional Advertising Trends
- Digital now accounts for roughly 75.2% of global spend—fastest growth in search, social, and retail media (Abbey Mecca).
- In the U.S., TV budgets continue sliding toward $57.7B by 2027 (Publift).
- Retail media (ads on retailer platforms) is booming—projected around $231B in 2025 (Abbey Mecca).
What This Means for Your Budget
- Benchmark: Plan 5–12% of revenue for advertising; bias upward for high-competition markets or growth phases.
- Prioritize Digital: Shift toward social, search, retail media, and creator partnerships for precise targeting and measurable ROI.
- Diversify: Test emerging formats (retail media, influencer/creator, affiliate) alongside core search & social.
- Measure & Optimize: Track CAC/ROAS and reallocate budget monthly to the top-performing campaigns.
Sample 2025 Allocation (Copy-Paste Starter)
| Channel | Share of Ad Budget | Primary Role |
|---|---|---|
| Search (Google/Bing) | 20–30% | High-intent capture (bottom funnel) |
| Social (Meta/TikTok/LinkedIn) | 25–35% | Demand gen, retargeting, community |
| Retail Media (Amazon/Walmart/etc.) | 10–20% | Product discovery & conversion |
| Creator / Influencer | 5–15% | Trust, UGC, awareness |
| Video (YouTube/CTV) | 10–20% | Education, brand lift, assisted conversions |
| Testing & Creative | 5–10% | New hooks, offers, landing pages |
Rebalance monthly by CAC/ROAS and payback period. Winning channels get incremental budget; laggards are iterated or paused.
FAQs — 2025 Advertising Budgets
How much do companies spend on advertising as a % of revenue?
Most allocate 5–12%. Smaller or growth-focused businesses may push to 15–30% during key launch/expansion periods.
Is digital now the majority of ad spend?
Yes. Digital accounts for roughly 68–75% of total spend, led by search, social, and fast-rising retail media.
What’s the fastest-growing channel in 2025?
Retail media and the broader creator economy are expanding rapidly, alongside continued growth in social and short-form video.
How should I set my own budget?
Start with a revenue percentage (e.g., 8–12%), then refine with CAC/LTV and payback targets. Allocate across channels, test for 2–4 weeks, and shift to top performers.
Sources & Further Reading
- dentsu — Global Ad Spend Forecasts
- Publift — U.S. Digital & TV Spend Trends
- Business Insider — Creator Economy Outlook
- SpiderAF — Budget % Benchmarks
- MediaMax — Industry Variance Insights
- SoPro — CMO Survey Budget Trends
- Abbey Mecca — Digital & Retail Media Share
Figures above reflect the cited sources’ public reporting and industry aggregations as of 2025.
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