Retailers sharply increase spending on social media in 2025, study says

"The researcher's Q3 report, which takes a global versus U.S.-specific view, highlights how the digital triopoly of Amazon, Google and Meta continues to entrench its dominance amid a period of deep economic uncertainty. The findings also indicate that marketers enacted a blitz of activity in Q2, a "pre-tariff" period where many brands rushed to stockpile inventory and promote value ahead of expected price hikes."

"WARC tracked "sharp" increases in spending from retailers on social media in Q2, with the category pouring more dollars into Meta-owned Instagram (up 18.8%) and TikTok (up 56.8%), whose future in the U.S. is still being sorted out. Retail is now the largest category on both of those platforms, per WARC monitoring assisted by Nielsen. Technology and consumer electronics, other verticals vulnerable to tariffs, recorded notable lifts in spending on those sites as well."

"Driving momentum are digital-first ad platforms, which will snap up nine in 10 dollars of incremental market growth, and what WARC described as a "pre-tariff windfall." Social media is attracting a plurality of new ad dollars at 40.6% market share, while non-retail search and retail media will take up 22.2% and 21.5% of spend, respectively. Just three companies - Google owner Alphabet, Amazon and Meta - are positioned to take over half (55.8%) of global ad spend this year, excluding China."

Social media ad spending surged 20.2% year over year in Q2, equivalent to roughly $4.9 billion in added value. Retailers and tariff-vulnerable verticals boosted spending sharply, allocating more to Instagram (up 18.8%) and TikTok (up 56.8%). Marketers enacted a Q2 blitz during a "pre-tariff" window to stockpile inventory and promote value ahead of expected price increases. Forecasts for 2025 were revised upward, with full-year global ad spend now expected to grow 7.4% to $1.17 trillion. Digital-first platforms will capture most incremental growth, and three companies—Alphabet, Amazon and Meta—will take a majority share of spend.

Read at Social Media Today