Digital now accounts for more than 80% of U.S. advertising, states Inside Radio post
The U.S. advertising market is finishing 2025 in a stronger position than it began the year, driven largely by better-than-expected digital spending and continued gains by the largest technology platforms, according to a new report from MoffettNathanson.
Inside Radio reports that the firm “raised its U.S. ad growth forecast to 7.6% for 2025, up from a revised 5.8% in March and above the 6.9% estimate issued at the start of the year. Analysts said the improvement stems from outsized performance at Meta, Alphabet, Microsoft and Amazon — and increasingly Walmart — as advanced AI tools enhance ad targeting, creative production and measurement.”
“At first glance, the U.S. advertising industry appears healthy and strong,” the report said, projecting ad spending to reach 1.43% of GDP by 2027, the highest level since 2000. But the authors warned that “a look under the hood paints a far less uniform picture especially for anyone not named Meta, Alphabet, Microsoft and Amazon.”
Digital now accounts for more than 80% of U.S. advertising, up from roughly 30% in 2015. But the report shows most of that growth is consolidating around the four largest platforms. Those companies represented about 20% of U.S. ad spending in 2015; today they control about 68%, a share MoffettNathanson expects will climb to nearly 75% of the entire market by 2027.
