Digital Ad Spend by Industry: Who’s Leading the Charge in 2023-2025?

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Sunday February 99th Feb 2025
4 min. read
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As digital advertising continues to dominate the global marketing landscape, businesses across industries are ramping up their online ad budgets. Digital advertising worldwide is set to reach new heights, with spending expected to hit $720 billion by 2025—a 7.9% increase from the previous year.

Which industries are leading this charge, and how are they shaping the future of digital advertising? This article delves into the key sectors driving growth, their strategies, and trends to watch as the digital ad market evolves.

Digital Ad Spend by Industry: A Snapshot

Top 10 Sectors in 2025

The table below outlines the industries expected to lead digital ad spending by 2025, along with notable trends shaping their strategies.

Industry
2025 Share of Digital Ad Spend (%)
Notable Trends
Fast-Moving Consumer Goods (FMCG) 22.4% Video ads, influencer marketing, sustainability messaging
Retail 12.7% Omnichannel strategies, personalized shopping ads
Pharma and Health Care 8.5% Telehealth promotions, wellness education campaigns
Entertainment & Media 8.0% Streaming services, gaming ads
Telecommunications 7.4% 5G rollouts, bundled service promotions
Travel & Leisure 7.0% Post-pandemic recovery, experiential campaigns
Financial Services 6.9% Fintech growth, financial literacy campaigns
Business Services 5.8% B2B marketing, software-as-a-service (SaaS) ads
Automobiles 4.5% Electric vehicle (EV) marketing, tech features
Government 4.2% Public awareness campaigns, voter education

Together, these industries are projected to account for nearly 88% of total global digital ad spending, highlighting their influence on the market.

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2023–2024: Setting the Stage

2023: Strong Performance Across Key Sectors

In 2023, global digital ad spending reached $667.6 billion, with Fast-Moving Consumer Goods (FMCG) leading the pack at 21.6%. Retail followed at 12.3%, and pharma and health care secured third place with an 8% share. The entertainment and media sector, fueled by streaming services and gaming, rounded out the top five.

Emerging Trends in 2023

  • Video Advertising: Short-form content on platforms like TikTok, YouTube Shorts, and Instagram Reels dominated ad strategies.
  • Social Commerce: The integration of eCommerce features on social media platforms expanded significantly.
  • AI-Powered Campaigns: Industries increasingly adopted artificial intelligence for hyper-targeted and automated ad optimization.

2024: Sustained Growth

Digital ad spend is forecast to grow by 10.9% in 2024, reaching $720 billion. The retail sector is expected to rebound slightly, driven by the growing adoption of omnichannel marketing and personalized customer journeys. Meanwhile, pharma and health care are projected to grow their share to 8.3%, reflecting rising consumer interest in telehealth and wellness.

What’s Driving Growth in 2025?

1. Fast-Moving Consumer Goods (FMCG): Leading the Way

The FMCG sector remains the top spender, increasing its share to 22.4% of global digital ad spending. This reflects its continued focus on reaching large audiences through compelling ad campaigns.

Key Strategies in FMCG Digital Advertising

  • Sustainability Messaging: Consumers prioritize eco-conscious brands, prompting FMCG companies to highlight their green initiatives in digital ads.
  • Influencer Partnerships: Collaborations with influencers, particularly on TikTok, Instagram, and YouTube, drive product awareness among younger audiences.
  • Programmatic Advertising: FMCG brands use automated ad-buying to precisely target demographics across multiple platforms.

2. Retail: Resurgence Through Omnichannel

Retail, contributing 12.7% of digital ad spend, is embracing the blending of online and offline shopping experiences to stay competitive.

Key Retail Strategies

  • Omnichannel Excellence: Retailers invest in campaigns that integrate online ads with in-store promotions, creating seamless shopping experiences.
  • Personalization: Data-driven insights enable highly targeted ads that cater to individual consumer preferences.
  • Evolving Platforms: Social commerce continues to drive sales, with features like live shopping events gaining popularity.

3. Pharma and Health Care: Meeting Wellness Demand

Pharma and health care’s ad spend rises to 8.5%, reflecting increasing consumer interest in telemedicine, health apps, and wellness products.

Growth Factors in Pharma & Health Care

  • Telehealth Growth: Ads for virtual medical consultations and online pharmacies are gaining traction.
  • Wellness Campaigns: Companies emphasize preventive care and health education in their messaging.
  • Regulatory Compliance: Ad campaigns in this sector must balance creativity with adherence to stringent regulations.

4. Entertainment and Media: Engaging Experiences

The entertainment and media industry sees its share grow to 8%, with streaming services, gaming, and digital content platforms driving ad investments.

5. Telecommunications: Spotlight on 5G

Telecommunications accounts for 7.4% of ad spend, leveraging the rollout of 5G technology to highlight faster connectivity and improved bundled services.

Other Notable Industries

6. Travel and Leisure: A Post-Pandemic Rebound

  • 7.0% share of digital ad spend
  • Campaigns emphasize experiential travel, eco-tourism, and personalized itineraries

7. Financial Services: Fintech on the Rise

  • 6.9% share of digital ad spend
  • Growing focus on digital banking, payment apps, and financial literacy campaigns

8. Business Services: Driving B2B Engagement

  • 5.8% share of digital ad spend
  • Focused on corporate buyers, SaaS products, and consulting ads

9. Automobiles: Marketing Innovation

  • 4.5% share of digital ad spend
  • Heavy focus on electric vehicles (EVs), AI-powered car features, and sustainability
  • AI-Powered Personalization: AI-driven ads allow for precise audience targeting, benefiting industries like retail, FMCG, and financial services.
  • Short-Form Video Dominance: Platforms like TikTok, YouTube Shorts, and Instagram Reels are transforming advertising strategies, particularly for FMCG and entertainment brands.
  • Sustainability Messaging: Brands across industries are emphasizing their environmental initiatives to attract eco-conscious consumers.
  • Omnichannel Integration: Businesses are ensuring seamless transitions between digital and physical shopping experiences.
  • Social Commerce Expansion: Social media is a major driver of eCommerce, with features like live shopping events, influencer marketing, and shoppable posts reshaping consumer behavior.

Opportunities for Businesses

To capitalize on the growing digital ad market, businesses should:

  • Invest in Video Content: Short-form and interactive videos are key engagement tools.
  • Embrace Sustainability: Highlight eco-friendly initiatives to appeal to consumers.
  • Adopt AI Tools: Use AI to refine targeting, budget allocation, and personalization.
  • Leverage Omnichannel Strategies: Ensure consistency across digital and physical touchpoints.
  • Expand into Emerging Platforms: Explore newer platforms like TikTok, Twitch, and the Metaverse.

Between 2023 and 2025, digital ad spend is projected to grow significantly, driven by technology advancements, evolving consumer behaviors, and increased competition. To stay ahead, businesses must embrace innovation, prioritize personalization, and align with emerging trends to maximize their advertising ROI and thrive in the digital landscape.

 

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