2025: A transformative year for global advertising defined by growth, upheaval, and opportunity – Hoorah Digital

2025: A transformative year for global advertising defined by growth, upheaval, and opportunity – Hoorah Digital


The advertising industry in 2025 did not crumble under pressure; it transformed. Marked by consolidation, digital dominance, and a full-scale embrace of AI, the global ad sector surged forward with $1.17tn in spending, a 7.4% increase over the previous year. These figures underscore a powerful rebound and a clear signal: marketing is more essential and more dynamic than ever before.

While the global figures are impressive, headlines were dominated by dramatic shifts within agency networks. In a landmark move, Omnicom acquired Interpublic Group (IPG) for $13bn. The consolidation led to the shuttering of historic creative agencies, including DDB and FCB, despite their strong creative performance. Notably, DDB took home 112 Cannes Lions in 2025, earning Network of the Year, but this wasn’t enough to save it from being dissolved into the TBWA network. This tension between creative accolades and financial pragmatism has sparked a renewed industry-wide debate: are we truly rewarding what matters?

Against this backdrop of upheaval, independent agencies stepped into the spotlight. Around the world and particularly in South Africa, smaller, agile firms gained market share by offering faster execution, less red tape, and clearer client focus. South African marketers increasingly sought partners who could deliver breakthrough ideas without bureaucracy. In fact, digital ad spend in South Africa surged 21.5% in 2023 to R17.7bn, now representing nearly 40% of the country’s total ad spend.

This digital acceleration is rooted in clear consumer behavior shifts. As of 2025, over 50 million South Africans are online, equating to nearly 80% of the population. The average user now spends more than 9.5 hours a day online, giving marketers an unprecedented opportunity for meaningful, targeted engagement. As a result, digital-first campaigns leveraging paid search, social media, video, and programmatic buying have become the default.

Globally, digital media now commands 75% of total advertising budgets, with performance-focused platforms like retail media and social media driving the majority of incremental growth. Retail media alone is projected to grow 14% this year to $175bn, while social media ad spend is approaching $276bn worldwide. The shift is undeniable: dollars are flowing to platforms that deliver measurable, data-driven results.

Simultaneously, AI adoption has reshaped agency operations. What began as buzz is now a boardroom priority. In 2025, more than half of marketers globally are actively using generative AI for content creation, media optimisation, and customer engagement. The best agencies now integrate AI to produce content faster, deliver personalisation at scale, and unlock new creative possibilities. Early adopters are reporting up to 50–80% increases in efficiency and dramatically reduced turnaround times. For agencies still clinging to traditional workflows, 2025 exposed just how vulnerable that model has become.

The in-housing trend also matured. Brands across sectors built internal content and media teams, particularly for high-frequency, always-on needs. However, instead of eliminating agencies, this shift recalibrated expectations. Agencies were pushed to deliver strategic thinking, integrated campaigns, and elevated creative work that in-house teams couldn’t match. In many cases, hybrid models emerged with internal and external teams collaborating fluidly. This dynamic has led to agencies becoming more like strategic consultants, prized for their agility, objectivity, and innovation.

“2025 didn’t bury advertising, it rebirthed,” says Taryn Marais, Hoorah client service lead. “We now operate in an environment where scale meets speed, and AI meets artistry. There’s more potential than ever for those bold enough to embrace it.”

As creative awards come under scrutiny, performance becomes the new prestige. As AI rewires workflows, human creativity takes on new forms. As global spend rises, local markets like South Africa have a seat at the table, driven by internet-first consumers and ambitious, tech-enabled brands. The West must wake up; the East sees huge potential in Africa, with rising populations, tech-savvy mobile users who are connected to the internet, where usage is extremely high. Mr Tump is missing a trick here.

The industry’s path forward is clear: agility, intelligence, and integration. For marketers, agencies, and brands that embrace this shift, the next era promises not just survival but real, measurable growth. Good luck in 2026, fellow readers.

Visit Hoorah https://hoorahdigital.com/.



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