Marketing, Advertising and Public Relations: Industry Report

Summary

Global advertising spending is forecast to reach $1.34 trillion in the current period, up 11.9% ¹. Social media, search and retail media are expected to account for 66.4% of global ad spend in the current period, rising to 70.0% later ². Platform concentration is high: Alphabet, Amazon and Meta are projected to control 59.7% of advertising spending outside China ³. Forecasters disagree on the market's size. Estimates for the current period range from $1.06 trillion to $1.34 trillion [S4, S1]. AI use is widespread, but consumer trust lags. In the United States, 82% of ad executives believe younger consumers feel positive about AI-generated ads, versus 45% of those consumers ¹¹. The main risks are measurement quality, platform dependency and governance gaps. The pack contains no verified benchmarks for CPM, CPC, CAC or ROAS, and no verified privacy rules. The outlook points to continued growth concentrated in a few platforms, with buyers pressing for auditable measurement and clearer AI governance.

Key findings

1. 1

   Growth is forecast, but the market size is contested

   WARC forecasts global ad spend of $1.34 trillion, up 11.9%, while dentsu's forecast across 56 markets puts the figure at $1.06 trillion. The gap means size estimates depend heavily on the forecaster.

   Confidence: Medium
2. 2

   Three platforms dominate outside China

   Alphabet, Amazon and Meta are projected to control 59.7% of global advertising spending outside China, about $659.6 billion. This is a forecast from a secondary report.

   Confidence: Medium
3. 3

   AI adoption outpaces AI governance in Europe and the UK

   95% of UK digital advertising businesses use AI, but only 48% of IAB Europe survey respondents have AI guidelines specific to advertising and marketing.

   Confidence: High
4. 4

   Consumer trust in AI-generated ads is low among younger audiences

   45% of US Gen Z and Millennial consumers feel positive about AI-generated ads, and 39% of Gen Z consumers feel negative. Industry executives are more optimistic than the audience they target.

   Confidence: High
5. 5

   Viewability standards are voluntary and measurement remains a gap

   MRC viewability thresholds originate in the United States and are applied globally, but they are voluntary industry guidelines. The pack has no verified benchmark for attribution windows, brand lift or ROAS.

   Confidence: High

1Industry definition and scope

This report covers the marketing, advertising and public relations industry. For analytical purposes, it treats advertising as paid media bought by brands and agencies across social media, search, retail media, video and other channels. Marketing is treated as the wider commercial activity that uses paid, owned and earned channels to reach buyers. Public relations is treated as earned and communications work, but the source pack contains no verified data on PR spend or PR measurement.

The geographic scope is global. US and Europe/UK sub-sources are noted where they add evidence. The reporting period is the latest available data in the pack, with forecasts labeled as forecasts and company results labeled as reported figures.

Industry segments in scope are advertisers and brands, agencies and holding companies, platforms and publishers, technology providers and measurement bodies. Terms such as viewable impression, attention measurement and agentic AI are used as defined in the cited standards or surveys. Forecasters use different definitions of advertising spend, which is a limitation discussed in the methodology callout.

Definitions follow the cited sources. Where the pack uses different totals for the same market, both figures are reported.

2Market size, structure and value chain

WARC forecasts global ad spend of $1.34 trillion, growing 11.9%, in the current period ¹. This follows growth of 10.0% in each of the two prior periods ². Social media is forecast to be the fastest-growing major channel, rising 21.3% to $394.6 billion ¹. These are forecasts, not realized spend. For the next two periods, a secondary report cites forecast growth of 8.4% to $1.46 trillion and 7.9% to $1.57 trillion ³.

Estimates for the same current period vary. Dentsu's May forecast across 56 markets gives $1.06 trillion, with digital at 69% and growth of 5.0% ⁴. WPP Media gives $1.3 trillion and EMARKETER gives $1.170 trillion ⁴. The differences likely reflect scope and methodology, but the pack does not explain them. The analysis below uses the WARC figure as the headline and treats the range as a limit on precision.

The value chain runs from advertisers to agencies and holding companies, then to platforms, publishers and ad technology providers, and finally to measurement partners. Platforms earn most of their revenue from advertising. Agencies earn fees and commissions for planning, buying and creative work. Holding company revenue figures are reported differently. Publicis reported net revenue of EUR 14,547 million and gross revenue of EUR 17,399 million ⁸. The pack does not explain the difference between these measures, so they should not be compared directly. Interpretation: value is moving toward channels where the platform controls inventory, data and reporting.

• Global advertising spend, current period (forecast) 1.34US$ trillion Forecast Global, Current period [1]
• Social media ad spend, current period (forecast) 394.6US$ billion Forecast Global, Current period [1]
• Social, search and retail media share of global ad spend (forecast) 66.4percent Forecast Global, Current period [2]

Forecast and observed figures are kept separate. Market size estimates are not reconciled because the pack does not give their definitions.

3Customers, demand and adoption

Brands and agencies are the main buyers of paid media. An IAB survey of more than 200 brands and agency buyers projects US advertising spend growth of 9.5% in the current period ¹³. This is a forecast from a trade association survey, so it reflects buyer intentions rather than verified spending. Two-thirds of surveyed buyers are focused on agentic AI for buying and campaign execution ¹³.

Cost efficiency was the top AI benefit cited by 64% of US respondents in the current period, up from fifth place in the prior period ¹¹. This suggests that buyers see AI mainly as a productivity tool. Demand for channels is concentrated: social media, search and retail media together account for 66.4% of global spend in the current period ².

Consumer expectations differ from buyer expectations. In the United States, 82% of ad executives believe Gen Z and Millennial consumers feel positive about AI-generated ads, while 45% of those consumers do ¹¹. Among Gen Z consumers, 39% feel negative toward AI ads, compared with 20% of Millennials ¹¹. These figures come from an industry association study covering October to January, so they are useful for direction but not for precise targeting.

The pack contains no verified data on CPM, CPC, conversion rate, CAC, ROAS, retention, brand lift or qualified leads. As a result, purchasing criteria such as cost per outcome cannot be quantified. The main barrier to adoption visible in the sources is trust, both in AI-generated creative and in the measurement behind it.

Consumer findings are US-only and drawn from a survey, so they should not be generalized globally.

4Competitive landscape and key players

The landscape has three layers: platforms that sell audience reach and first-party data, agencies and holding companies that plan and buy media, and measurement or standards bodies that set rules for counting audiences. Platforms compete mainly on reach, targeting and reporting. Agencies compete on planning, creative and buying efficiency.

Alphabet reported advertising revenue of $82,012 million in the third quarter, compared with $74,182 million a year earlier ⁵. Search and other revenue was $63,350 million, YouTube ads $11,207 million and Google Network $7,455 million, against $7,354 million a year earlier ⁵. Meta reported advertising revenue of $63,061 million in the third quarter, up 26% year over year ⁶. Both platforms grow, but growth is concentrated in search and video for Alphabet and in Meta's own feeds.

Omnicom reported worldwide revenue of about $17.3 billion, up 10.1%, including one month of IPG operations ⁷. Publicis reported net revenue of EUR 14,547 million, up 4.2%, with organic growth of 5.6% ⁸. Holding companies differ in scale, acquisition history and reporting, so direct comparison is limited.

The table below compares the reported figures. Currencies and periods differ, so values are not directly comparable.

Concentration is the main competitive pressure. The three platforms projected to control 59.7% of spending outside China set the terms for much of the market ³. Agencies depend on platform inventory and measurement, which limits their bargaining position. The pack does not include verified data on agency pricing or principal-media terms.

Provider comparisons use reported revenues only. Business models are described from the companies' reporting categories.

5Technology, operations and workforce

AI use is now widespread. IAB UK reported that 95% of UK digital advertising businesses use AI, based on more than 250 decision-makers surveyed in February of the latest period ¹². In the IAB Europe survey, however, only 48% of respondents have AI guidelines specific to advertising and marketing ¹². The gap between use and governance is the central operational issue in the sources.

Agentic AI is the main focus of buyers. Two-thirds of surveyed buyers are focused on agentic AI for buying and campaign execution ¹³. The pack does not verify the performance gains from these systems, so they should be treated as expected rather than proven.

Measurement technology is shifting. The IAB and MRC attention measurement guidelines require attention metrics to sit on top of an audited base of MRC-compliant viewable or audible impressions ⁹. Attention measurement reported without viewability is treated as non-standard and diagnostic ⁹. Operationally, this means that attention data cannot replace viewability as the audited base.

Workforce data is limited. The pack contains no verified source on talent supply, skills demand, training or productivity in the sector. Interpretation: as AI handles more buying and execution, the professional skills in demand are likely to shift toward data governance, measurement design, creative direction and client consultation. This is the writer's assessment, not a verified finding.

Technology claims are limited to survey and standards sources in the pack.

6Regulation, standards, risk and sustainability

The measurement standards cited are voluntary industry guidelines. The MRC display viewability standard, which originates in the United States and is applied globally, requires at least 50% of ad pixels in view for one continuous second after render ¹⁰. The video standard requires 50% of pixels in view for at least two continuous seconds ¹⁰. These are standards, not statutes, and the pack does not verify how they are enforced.

The MRC retail media guidelines draft states that viewable impressions are required for attributing outcomes to ad exposures ¹⁵. This is a public comment draft, so it should not be treated as final. The MRC has also advised the industry against trading on viewability during a pilot period, which indicates that the standard has been revised over time ¹⁴.

The pack contains no verified binding privacy or consent rules, including cookie consent and third-party identifier changes. The jurisdiction for these rules cannot be named from the pack. Readers should check the relevant national or regional regulator before relying on any privacy position.

Brand safety and invalid-traffic measurement are not verified beyond the viewability thresholds. Sustainability and environmental impact are not covered in the pack. Operational risks visible in the sources include platform dependency and restructuring costs. Omnicom reported $1,247.0 million of severance, real estate and efficiency costs in its latest fiscal year ⁷. The ethical risk of undisclosed AI creative is supported by the consumer trust data ¹¹.

No binding regulation is cited in the pack for this sector. Privacy and consent analysis is a gap.

7Challenges, opportunities and case examples

The main challenges are trust in AI-generated advertising, a gap between AI use and AI governance, and high platform concentration [S11, S12, S3]. A further challenge is measurement. Attribution windows, brand lift and conversion metrics are not verified in the pack, so buyers may rely on platform-reported figures.

Opportunities follow the growth channels. Social, search and retail media are expected to hold a rising share of spend ². Cost efficiency is the most cited AI benefit ¹¹, and agentic AI interest is high among buyers ¹³. The opportunity for agencies is to build governance and measurement services that clients can audit.

Alphabet's advertising revenue grew from $74,182 million to $82,012 million across the comparable quarters, with YouTube ads reaching $11,207 million ⁵. Network revenue was broadly flat at $7,455 million against $7,354 million ⁵. This suggests that growth is concentrated in owned properties rather than third-party networks, though the pack does not give the reason.

Meta's advertising revenue rose 26% in the third quarter ⁶. Omnicom's worldwide revenue rose 10.1%, but its operating expenses included $1,247.0 million of severance and efficiency costs ⁷. Publicis reported 5.6% organic growth on 4.2% reported growth ⁸. These examples show platform growth alongside agency restructuring, but the sources do not establish cause and effect.

Examples are chosen from the pack only. No comparable brand-level campaign data is available.

8Outlook and strategic implications

The base case is continued growth, with forecasters expecting increases in the following periods ³. Social, search and retail media are likely to keep gaining share ². Platform concentration is likely to persist, given the forecast control of the three largest platforms ³. This is an assessment based on forecasts and should be treated as uncertain.

A second likely shift is agentic AI moving from pilots toward buying and execution, as buyer surveys suggest ¹³. Whether it improves outcomes depends on measurement the pack does not verify. A downside risk is trust: if younger consumers remain skeptical of AI-generated ads ¹¹, brands may need stronger disclosure and creative testing.

Practical implications follow. Brands should require auditable viewability and attention data before accepting platform-reported results [S9, S10]. Agencies should build AI governance, since only 48% of European respondents have it ¹². Platforms face growing expectations for transparent measurement. Measurement bodies should finalize retail media standards ¹⁵.

Implications are interpretation. They are not professional advice.

9Conclusion

The industry is growing and concentrated in a few platforms, while AI adoption is ahead of governance and consumer trust. The most defensible takeaways are that market size estimates vary, that viewability standards are voluntary and that buyers need auditable measurement. Benchmarks and privacy rules remain unverified.

How this was built

Sources

1. 1

   Global Ad Spend Forecast: third quarter

   WARC Media Market research

   warc.com
2. 2

   Global advertising spend surges 11.9% to $1.34trn this year despite consumer caution

   WARC Media (press release) Market research

   podnews.net
3. 3

   Global Ad Spending Forecast to Reach $1.34 Trillion, Up 11.9%

   WARC Media, reported by Media Jobs Report News report

   mediajobsreport.com
4. 4

   Digital Advertising Statistics: Spend and Revenue Data

   Salehoo (compiling WARC, WPP Media, dentsu figures) Market research

   salehoo.com
5. 5

   Form 10-Q for the third-quarter filing

   Alphabet Inc. (SEC filing) Company report

   sec.gov
6. 6

   Meta Reports Third Quarter Results

   Meta Platforms, Inc. (press release) Company report

   investor.atmeta.com
7. 7

   Form 10-K for the latest fiscal year

   Omnicom Group Inc. (SEC filing) Company report

   sec.gov
8. 8

   FY Results (net revenue and organic growth)

   Publicis Groupe SA Company report

   documents.publicisgroupe.com
9. 9

   IAB and MRC Attention Measurement Guidelines Version 1.0

   Interactive Advertising Bureau and Media Rating Council Standard

   iab.com
10. 10

    MRC Viewable Ad Impression Measurement Guidelines (as summarised by Pixalate)

    Media Rating Council with IAB (summary by Pixalate) Standard

    pixalate.com
11. 11

    Impact of AI on Digital Advertising / AI Ad Gap Widens

    IAB with Sonata Insights Industry association

    iab.com
12. 12

    IAB Europe Impact of AI on Digital Advertising report (second annual edition)

    IAB Europe Industry association

    ppc.land
13. 13

    IAB Outlook Study (US ad spend forecast)

    Interactive Advertising Bureau (reported by PPC Land) Industry association

    ppc.land
14. 14

    Viewable Ad Impression Measurement Guidelines 2.0 announcement

    Association of National Advertisers (summarising MRC) Standard

    ana.net
15. 15

    IAB/MRC Retail Media Measurement Guidelines (public comment draft)

    IAB and MRC Standard

    iab.com