Marketers Brace for 2025: User-Generated Content, Tariffs, and AI to Reshape Advertising
Ad spending forecasts for 2025 have been shifting, reflecting the uncertainties marketers face this year. WPP Media, formerly known as GroupM, recently updated its global midyear ad spend forecast, adjusting growth expectations downward. This change stems largely from the impact of proposed tariffs under the Trump administration, which have tightened marketing budgets worldwide.
Lowered Projections but Positive Growth
WPP Media now predicts global ad spending to grow by 6% in 2025, revised from an earlier estimate of 7.7% in December. While tariffs are expected to drag on budgets, the 1.7% cut is not catastrophic. The current economic outlook suggests no global recession this year, offering a glimmer of stability.
Kate Scott-Dawkins, global president of business intelligence at WPP Media, highlights that a 6% growth rate would still push total ad revenue to approximately $1.08 trillion. Meanwhile, the impact of tariffs is unlikely to be uniform. Although baseline 10% tariffs were threatened broadly, higher tariff rates have been mostly scaled back for key allies like the UK, Canada, and Mexico.
The main tariff pressures are concentrated on the US and China, which remain embroiled in ongoing trade disputes. As a result, WPP Media expects US ad spend growth to slow to 5.6% from an earlier 7%, while the Chinese market is forecasted to grow by 6.8%. Some marketing dollars originally intended for these markets are shifting to Europe, especially the UK and Germany. Brands like Temu and Shein have already redirected parts of their US ad spend to European audiences.
AI and User-Generated Content Take Center Stage
Beyond tariffs, generative AI technology is set to reshape advertising content creation. WPP Media predicts that 2025 will be the first year user-generated content (UGC) accounts for a larger share of ad revenue than professionally produced content. This shift reflects a blurring line between user-generated and professional content, especially on platforms like TikTok, which WPP counts within its UGC category without separating creator types.
AI's role in accelerating this transition is widely acknowledged. WPP polled 60 ad industry experts who largely agree that by 2030, most audiences will consume news from individual creators or AI-generated bots. This trend raises questions about brand safety and misinformation, though WPP does not currently factor martech or ad tech spending into its forecasts.
AI Chatbots and Social Media’s Future
AI will also transform social media interactions. According to the expert poll, 66% expect that by 2030, most consumer-brand interactions will be bot-to-bot, with AI shopping agents and AI marketing agents communicating directly. Additionally, 52% anticipate that promotional content will dominate public social feeds, including bot-driven conversations.
There are predictions that AI-generated personas will make up over half of social media users by 2030. Despite concerns about AI's impact on jobs, 66% of experts don’t foresee AI reducing consumer spending power in the same period. Interestingly, 63% believe people will still spend more time in the real world than virtual spaces by 2030, suggesting marketers need to maintain a strong presence both online and offline.
What Marketers Should Keep in Mind
- Expect user-generated content, powered by AI tools, to dominate ad revenue in the near future.
- Monitor trade policies carefully, as tariffs continue to affect where marketing budgets are allocated.
- Prepare for AI-driven automation of consumer interactions, including bot-to-bot communication and AI personas on social media.
- Balance digital innovation with real-world engagement to connect effectively with audiences.
For marketers seeking to adapt and upskill in AI-powered marketing, exploring targeted AI courses can provide a competitive edge. Resources like Complete AI Training’s AI Certification for Marketing Specialists offer practical knowledge to navigate these changes confidently.
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