Overview of US Digital Ad Spending in 2025
In 2025, US digital ad spending growth is expected to slow but still remain significant. According to eMarketer, the year will mark the first time in 16 years that digital ad spending growth dips below 10% year-over-year. Despite this moderation, digital advertising will continue to dominate the overall ad spend landscape.
Market Share and Industry Differences
More than three-quarters of US media ad spending is forecast to be allocated to digital channels. There are notable differences though between industries in digital adoption. Technology and electronics, retail, and consumer packaged goods (CPG) industries are projected to spend over 80% of their ad budgets on digital formats.
Meanwhile, healthcare and pharmaceutical sectors, although traditionally slower to shift, will exceed three-quarters digital ad spend (77.4%) by 2026, just below the overall average. Telecom will maintain a more consistent but below-average digital share.
Connected TV (CTV) Growth
Connected TV remains a dynamic growth area. US CTV ad spending has grown by more than $8 billion over the past two years, reflecting intense competition for advertising dollars in this format.
CTV platforms such as Pluto TV and Tubi are gaining audience share, with Tubi’s share of total TV time increasing from 1.4% in July 2023 to 2.1% in July 2024. YouTube leads in share gains among Nielsen tracked services.
Retail and Commerce Media
Retail media ad spending is projected to represent more than $1 in every $5 digital ad dollars by 2029, despite slowing year-over-year growth rates. Commerce media is also rapidly expanding, with US spending forecast to hit $118.44 billion by 2029.
These channels are growing in influence as companies seek new high-margin revenue streams and innovate retail and financial media networks.
Strategic Considerations
Brands and marketers should focus on privacy-first programmatic strategies as privacy regulations evolve. Attention metrics will also gain importance in evaluating ad effectiveness.
Despite economic uncertainties and tariff-related risks noted in forecasts, digital advertising remains the key growth driver, commanding an increasing share of advertising budgets across sectors.
Summary
In summary, while 2025 shows digital ad spending growth slowing below 10% for the first time in many years, the trend towards digital dominance continues strongly in the US. Growth in connected TV, retail, and commerce media, as well as industry-specific shifts, underscore a nuanced but expanding digital ad ecosystem.
Sources: eMarketer H1 Digital Ad Spending Forecast and Trends Report, August 2025; US Ad Spending 2025 Report, April 2025.
