CTV and social media dominate advertisers’ 2025 spending plans

A growing number of advertisers anticipate an improved business environment in early 2025, with many increasing their budgets and prioritizing digital channels, according to the latest “U.S. Macroeconomic Effects and Perceptions Study” from Advertiser Perceptions.

The survey, conducted in December 2024, found that 44% of advertisers expected business conditions to improve in the first quarter of 2025. More than half said the climate was already favorable in the final quarter of 2024. This marks a significant increase in optimism compared to the previous year.

Almost two in five advertisers expected to increase their advertising budgets in 2025, a notable rise from the 29% who planned budget growth for 2024 at the same time last year. Connected TV (CTV) and social media emerged as the leading channels for budget increases, with 45% of advertisers planning to spend more on each. Video, digital audio, and retail media platforms followed closely.

CTV was identified as the top channel for upper-funnel brand awareness campaigns, while general search was considered most effective for lower-funnel conversions. Social media was rated the most important for full-funnel marketing strategies, reinforcing its role in both brand building and direct response campaigns.

The study found a decline in concerns about supply chain disruptions, interest rates and inflation.

Advertisers reported fewer economic challenges than in previous survey waves, supporting their plans to expand marketing investments.

Advertisers remained focused on return on investment (ROI), with 23% defining success by sales directly attributed to ad campaigns. Other key ROI metrics included lead generation, website traffic, and brand awareness.

When selecting media partners, more than half of advertisers prioritized audience reach, followed by cost considerations and cross-platform measurement capabilities.

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The findings suggest a shift in advertiser sentiment, with increasing confidence in economic conditions and a stronger commitment to digital-first strategies. As brands navigate 2025, CTV, social media, and search are likely to dominate media plans, reflecting broader trends in audience engagement and performance-driven marketing.