Commerce Media Set to Overtake TV Advertising Globally

Commerce media is poised to surpass television ad spend globally for the first time in 2025, driven by the increasing dominance of digital advertising. This shift reflects a growing preference for performance-driven and measurable advertising solutions. According to WPP Media’s latest advertising forecast, released in December 2024, digital advertising will command 84% of the global advertising market.

The Rise of Commerce Media

WPP Media estimates that commerce media will reach $178.2 billion in global ad revenue in 2025, exceeding the $171.1 billion projected for traditional TV advertising. This growth is fueled by the ability of commerce media to directly link advertising spend to sales outcomes. Commerce media encompasses advertising that appears on retailer websites, e-commerce platforms, and within the customer journey on those platforms.Think of sponsored product listings on Amazon or targeted ads on Walmart.com – these are examples of commerce media in action.

What is Commerce Media?

Unlike traditional advertising, which often relies on broad reach and brand awareness, commerce media focuses on influencing purchasing decisions at the point of sale. It’s a form of advertising where brands pay to promote their products within the shopping experiences of retailers and e-commerce platforms. This allows for precise targeting and measurable results, making it highly attractive to advertisers. The key difference lies in the intent – consumers actively browsing for products are more likely to convert than those passively exposed to ads elsewhere.

Digital Advertising Dominance

The broader trend highlighted in the WPP report is the continued ascent of digital advertising. Digital is projected to represent 84% of all global advertising spend in 2025. Within the TV sector,streaming’s share of revenue is also increasing,rising from 26.2% to 29.5% during the same period. This indicates a broader consumer shift towards digital content consumption.

Key Drivers of Growth

• Measurability: Commerce media offers clear ROI tracking, allowing brands to see exactly how their ad spend translates into sales.
• Targeting Capabilities: Retailers possess valuable first-party data on consumer behavior,enabling highly targeted advertising campaigns.
• Performance-Driven Results: Commerce media is focused on driving immediate sales, making it appealing in a results-oriented marketing landscape.

Expert Insights

Kate Scott-Dawkins, global president of business intelligence at WPP Media and author of the report, emphasizes that commerce media is becoming “very, very attractive” to brands due to its performance-driven and measurable nature. This suggests a fundamental shift in how advertisers allocate their budgets, prioritizing channels that demonstrate a clear link to revenue.

Looking ahead

The forecast from WPP Media signals a meaningful turning point in the advertising industry. As commerce media continues to grow, brands will likely increase their investment in this channel, seeking to capitalize on its unique ability to connect advertising directly to sales. The continued growth of streaming will also reshape the TV landscape, further accelerating the shift towards digital advertising. The industry will be watching closely to see how these trends evolve in the coming years.

Publication Date: 2025/12/08 03:00:20