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."

WARC data shows global social media ad spending rose 20.2% year‑over‑year in Q2, exceeding prior projections by about $4.9 billion. Retailers led sharp increases, directing more spend to Instagram (up 18.8%) and TikTok (up 56.8%) as brands stocked inventory and promoted value ahead of anticipated tariffs. Technology and consumer electronics also raised social ad spend. WARC raised its 2025 global ad spending forecast to 7.4% growth, projecting $1.17 trillion, driven by digital-first platforms that will capture nine of ten dollars in incremental growth. Alphabet, Amazon and Meta are set to command a majority of global ad spend.

Read at Social Media Today