Two out of three marketers expect business to improve next year, according to a worldwide survey of more than 1,000 marketing executives by WARC. That is the highest level of optimism in three years. The survey finds 72% of marketers think economic conditions will significantly impact their marketing strategy in 2025, even as they remain worried about changes to trade policies and geopolitical conflicts.
Those factors may be why marketers are less optimistic about increasing marketing budgets for the year ahead. WARC says just a third (34%) expect marketing budgets to increase. That is down from 41% who said the same thing a year ago. Yet there is still reason for media sellers to be hopeful. The survey finds a third of marketers expect budget increases for next year and another 44% predict their overall market budgets will hold steady.
The survey shows ad agencies are less optimistic about higher ad spending, with just over a quarter (28%) of agency survey respondents saying they expect budgets to increase. That compares to 46% of marketers working for brands.
Global advertising investment is on track to surpass $1 trillion for the first time this year and is set to grow 7.6% in 2025, per the latest advertising spend forecasts by WARC Media. Overall, U.S. ad spend is anticipated to grow 8.9% this year. The research suggests that digital channels will continue to be prioritized over traditional media in the year ahead.
That can be seen in audio spending. When marketers around the globe were asked how they expected their investment in specific media channels to change next year, respondents were four times more likely to predict their podcast advertising would increase compared to where they believe their radio budgets are heading.
Another area where the net positivity scores are the highest is with influencer and creator marketing. That is an area where audio companies continue to make a play as they pitch host-read ads to buyers.
For the second year in a row, most marketers expect investments in online video and social media to increase. According to WARC’s most recent Global Ad Spend Outlook, online advertising now accounts for 58.7% of total advertising spend, while legacy media accounts for a quarter (25.3%). On average, 34% of surveyed marketers do not currently invest in TV and cinema, compared to only 5% for online video and social media. However, recent research — from Ebiquity and Lumen, as well as Thinkbox — has shown that legacy media outperforms digital channels in attention and effectiveness.
“I do think traditional media, versus the very hardcore performance media, still has an ability to create trust and tell a story,” David Sandstrom, Chief Marketing Officer at Klarna said. “One thing that brands are lacking today is not their ability to optimize their Facebook ads. It is their ability to tell a story.”
In the WARC survey, 44% of marketers highlighted media and audience fragmentation as one of the biggest causes for concern in 2025, an increase of 9% from last year.
The death four years ago of George Floyd and the Black Lives Matters protests that followed helped change the conversation around marketing. But decisions by several brands to pull back on some of those efforts are being reflected in their spending plans. WARC’s survey finds 20% expect diversity and inclusion efforts to significantly impact marketing strategies next year, which is down ten points from last year. And 28% say the environment will significantly impact marketing strategies next year, vs. 38% who said that a year ago.
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