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Global Ad Market Slows as WPP Cuts Forecast, While AI & UGC Surge Ahead

  • Writer: Sean G
    Sean G
  • Jun 11
  • 2 min read
Global Ad Market Slows as WPP Cuts Forecast, While AI & UGC Surge Ahead

In a sobering assessment, WPP Media has revised its 2025 global advertising growth forecast downward—from 7.7% to 6%—citing trade instability and geopolitical tensions that are prompting advertisers to pull back on commitments  . This adjustment reflects wider industry caution as brands navigate rising tariffs and fragmented supply chains.


Despite the slowdown, digital ad spend continues to flourish. WPP forecasts that digital ads will account for an impressive 73.2% of the projected $1.08 trillion global ad spend in 2025  . Even more striking, user-generated content (UGC) is expected to outpace professionally produced media, following trends across platforms like YouTube, TikTok, and Instagram  .


📈 Why Growth Is Slowing

  • Trade Climate Uncertainty: Ongoing U.S. trade actions and tariff risks are discouraging long-term ad investments  .

  • Deglobalization Pressures: Fragmented markets are pushing clients toward shorter-term, flexible ad plans that can be adjusted quickly  .


What’s Driving the Future?

  • AI-Powered Ads: From generative copy and visuals to predictive targeting, AI tools are now central to ad creation. Brands like Meta aim to fully automate ad crafting by 2026  .

  • UGC Ascends: Creator content is not just popular—it’s lucrative. In 2025, UGC ad revenue is forecast to eclipse traditional media, with creator revenues expected to reach $376 billion by 2030  .

  • Print Decline & Search Growth: Print ad revenue is predicted to slide by 3.1%, while search continues to grow steadily at 7.3%  .


What It Means for Advertisers

  • Double Down on Digital: Brands should lean into high-performing channels like AI-driven display and creator partnerships.

  • Agile Budgeting is Key: With trade-related volatility, flexible ad strategies and shorter contracts are essential  .

  • Align with UGC Ecosystems: Collaborate with everyday creators, build community-driven content, and inject authenticity through real voices over polished ads.


While the global ad growth may dip, the digital transformation of ads remains unstoppable. AI and UGC are no longer experimental—they’re foundational. In a world defined by fluctuating economics, brands that embrace automated creativity and creator-led storytelling stand to lead the next wave of global advertising.



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