IAB/PwC: Digital ad revenue jumps to $294.6B in 2025 as social and video surge

Record growth without the usual tailwinds

It has been reported that the Interactive Advertising Bureau’s PwC-compiled Internet Advertising Revenue Report shows U.S. digital ad revenue reached $294.6 billion in 2025, a 13.9% year‑over‑year increase. Not bad, considering there were no Olympics, World Cup or major election cycles to goose spending—yet the market still found a way. “This revenue growth reflects a market that has reoriented around performance channels,” IAB CEO David Cohen said, pointing to AI and tighter measurement as accelerants.

Where the money went

Social media exploded, bringing in $117.7 billion (up 32.6%), while digital video pulled $78.0 billion (up 25.4%) as consumers keep gravitating toward short‑form and creator‑led formats. Programmatic buying climbed 20.5% to $162.4 billion, commerce media reached $63.4 billion (up 18%), search hit $114.2 billion (up 11%), and display totaled $81.6 billion (up 9.8%). Even podcasts chipped in $2.9 billion, a 17.6% rise. In short: performance, creators, and video are where advertisers are placing their bets.

Why it matters

The story isn’t just bigger numbers. It’s a shift in how dollars are allocated—toward measurable, data‑driven channels that play well with first‑party data and AI optimization. That concentration also means the top platforms keep getting a larger slice of the pie, raising questions about competition and diversity of inventory. So what now? Expect more automation, more commerce tie‑ins, and more debates about who controls attention in the creator economy. The next big question: can this momentum hold once the next major cyclical events return—and who will benefit most when they do?

Sources: tvtechnology.com