Advertisers to pivot to performance in 2025 budgets
By Felicia Nwosu
A wave of global advertisers is pivoting towards performance marketing in 2025, with retail media and connected TV emerging as powerful catalysts, according to new data from the World Federation of Advertisers (WFA) and Ebiquity. The findings signals a major recalibration of advertising priorities as brands navigate the evolving media landscape in 2025.
The 2025 Media Budgets Survey reveals that 50% of advertisers worldwide intend to increase their media budgets next year, with 42% of these budgets earmarked for performance-driven marketing initiatives, a significant jump from 21% in 2024.
Meanwhile, only 24% of advertisers plan to raise their investment in brand-building efforts, compared to 35% the previous year, underscoring a noticeable shift from long-term brand growth to immediate returns.
The report, based on insights from 134 global brand leaders managing over $66 billion in annual advertising spend, highlights a growing commitment to connected TV and retail media channels. Specifically, 78% of advertisers are looking to boost investment in addressable and connected TV, while 75% aim to increase their retail media spend. In contrast, traditional media faces cuts: half of the advertisers surveyed plan to trim linear TV spending, and 31% intend to reduce their budgets for digital display ads.
Ebiquity CEO Nick Waters interprets the trend as a sign of increasing short-term priorities within the advertising industry. “This shift toward performance marketing reflects an immediate need for results,” Waters notes. “The emphasis on short-term outcomes could pose challenges for sustained brand equity.”
WFA CEO Stephan Loerke echoed this sentiment, describing retail media as a “transformative growth vehicle” that has unlocked new avenues for targeted advertising. “While this shift is creating dynamic opportunities, it raises questions about the long-term vitality of brand building if the trend toward performance continues at this pace,” Loerke explains.
The regional outlook also shows varying levels of optimism, with EMEA advertisers displaying renewed confidence after recent challenges, while North American brands adopt a more guarded approach. Economic concerns, including inflation, recession risks, and political uncertainties, appear to weigh heavily on North American advertisers, leading to cautious spending in that region.
“Signs of an economic downturn, coupled with political shifts, have influenced a more conservative stance among North American brands,” says Waters. “However, it’s promising to see an optimistic response in Europe and other regions as they recover from past challenges.”
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