State of Digital Advertising 2025: US Ad Spend Hits $137 Billion [REPORT]

Global Digital Ad Spend Climbs to New Heights

On a macro scale, spend and impressions both grew. Social channels accounted for the bulk of digital ad spend in the United States, with networks like Facebook, YouTube, and TikTok raking in major ad dollars. Monthly ad spend on social channels is expected to hit $10 billion in the US before the end of the year, far exceeding the amount spent on OTT, Desktop, or Mobile. Still, OTT saw the highest growth in spend (+21%) compared to socials’ +12% jump.

Shopping, comprised of subcategories like Apparel and Home & Garden, funneled the most money into digital ads, at 23% of total spend. Consumer Packaged Goods (CPG) and Media & Entertainment were strong contenders as well, with each contributing 10% to the total. However, despite CPG’s relatively hefty budget, the category’s spend actually declined year-over-year, dropping 4% since 2024. This shift was largely driven by a particularly large drop in the Household Supplies category (-25%).

Retail Media Gains More Ground

Retail media also made a strong showing this year, as it becomes an increasingly important channel for advertisers to monitor. Ad impressions on retail media networks increased 25% YoY in the first seven months of 2025, surpassing 25 billion in a month for only the third time ever. Amazon leads in this regard, dwarfing competing networks with nearly 200 billion overall impressions. Personal Care, Home & Garden, and Food & Beverages captured the largest share of impressions — and with the holiday season approaching, this sector shows no signs of slowing down.

Advertisers Prepare for Holiday Shopping Season

The State of Digital Advertising also highlights the impact of several perennial events on ad trends, including holiday shopping, sporting events, and back to school. With digital advertising ramping up well before Black Friday and Cyber Monday in the United States, advertisers need to be prepared early for the holiday season. Digital ad spend is projected to surpass $40 billion in Q4 2025, a 16% increase quarter-over-quarter and 13% increase year-over-year. We’ll also explore key insights to inform your seasonal strategy, including which subcategories are likely to make the biggest push, and exactly when brands should allocate their ad dollars.

Sports Advertising Remains a Relevant Battleground 

US  sports is another area with massive influence on the digital advertising space, with both professional and collegiate leagues providing a golden opportunity for brands to capitalize on increased consumer attention. When it comes to sports betting, the NFL remains the biggest draw. Time spent in sports betting apps is significantly higher throughout the NFL season compared to the rest of the year, including the granddaddy of all, the Super Bowl, which offers brands the largest audience of the year  to add new users.

Back-to-School Brings New Players Into The Field 

Finally, back-to-school (BTS) provides yet another key opportunity for growth. The rise in non-traditional back-to-school advertisers is a particularly notable trend to keep an eye on. For example, the transportation category made a dramatic entry into the top 15 BTS categories by ad spend in 2025 after being outside the top 50 in 2024 — while Health Care Services (+558% YoY) and Consumer Networks (+457% YoY) also saw explosive growth. This reflects a major shift in how brands are targeting students and families.