Ad Spending Surges 11% in Q2, Driven By Digital Gains.

Digital media continue to grab a bigger share of ad spending. But MoffettNathanson’s quarterly Ad Tracker shows that while traditional media is playing defense, the audio segment is holding on relatively well. It estimates total U.S. advertising grew 11% during the second quarter compared to a year earlier, with the growth concentrated in digital.

The firm says traditional media revenue declined 5% in the quarter while digital spending jumped 14% year-to-year. Digging deeper into the data, MoffettNathanson’s numbers show that it is television that is a drag on traditional media. It says overall TV spending declined 7% during Q2, with television stations revenue off 12% compared to a year ago when political advertising helped boost results. National and cable TV spending was also down.

“Over the past six years, due both to structural technological influences and the acceleration of digital adoption post the COVID-19 pandemic, the growth of digital advertising and the collapse of linear TV advertising has been stunning,” the report says. “We continue to see this trend shape the advertising market.”

MoffettNathanson thinks $4 billion will be shifted out of broadcast television this year, with another $2 billion expected to move from other traditional to digital. At the same time, projected online spending will continue to grow in “leaps and bounds” this year, adding $32 billion to the U.S. ad market.

The firm also forecasts overall ad spending will be slightly better than its previous outlook MoffettNathanson estimates a 6.3% increase in total U.S. ad spending this year, which is 0.3% better than its last update. “We continue to expect strong growth from the digital channels, more than offsetting contractions in traditional media,” it says.

The story for audio is one of relative stability. The firm estimates that audio ad spending will reach $16.4 billion this year. And by 2027, it estimates audio ad spending will total $16.2 billion as it predicts a roughly 1% erosion each year as digital absorbs a greater share of marketing dollars.

Separately, S&P has issued its own revised outlook on the media sector. It says advertising remains “solid” after a “shaky” start to the year. That has led S&P to also upgrade its outlook. The firm now expects overall U.S. advertising will grow by 5.2% in 2025. That compares to a 3.7% projection released in May.

“Advertisers' concerns earlier this year over an economic slowdown due to the effect of tariffs on consumer spending have largely subsided,” says S&P. As a result, it says near-term U.S. advertising has strengthened after a weak first quarter.

At the same time, S&P has grown more cautious about radio. It now estimates broadcast radio spending will dip 6.6% this year. That is weaker than the earlier 5.5% forecasted decline. There is an asterisk to the update, however. Analysts note radio advertising continues to have some of the shortest lead times in media, which gives them little visibility into the industry’s future performance.

Radio reps may be well-advised to focus on digital where S&P estimates spending will climb 9.5% this year—up from a 2.9% increase predicted in the earlier forecast.

“Digital advertising has sharply rebounded after a short-lived lull following the initial announcement of tariffs earlier in the year,” it says. “Advertising continues to shift toward digital platforms and the significant AI investments from the largest digital players are improving advertising efficiency, leading to growth.”

S&P has also given a fresh update to its 2026 forecasts. It now expects advertising spending will grow 6.3% next year. Analysts say they factored in rising economic uncertainty tied to weakening consumer confidence, geopolitical instability, and the effect of a full year of tariffs. One other factor that wasn’t included was the impact of a potential ban on prescription drug advertising.