A new Q2 2025 report from media analyst firm Madison and Wall shows the U.S. ad market is increasingly a story of two fortunes: digital advertising surged 16% while traditional media revenues continued to shrink. The total market, excluding political spend, grew just over 10%.
The digital feast: The expansion was powered by commerce and social media, with both categories growing by around 20%. The report notes that while tech giants still dominate, challengers like Walmart, Target, and TikTok are making their presence felt in a digital ecosystem that now commands roughly 70% of all U.S. ad spending.
Legacy's famine: In stark contrast, the ground continues to crumble under traditional media. Total television revenue fell by nearly 2%, while audio and publishing both saw their ad revenues dip by less than 1%.
The forecast for Q3 suggests the gap will only widen, with commerce media projected to climb 19% and social media to jump 16%. For advertisers, the message is clear: the audience and the money are firmly in the digital realm.
The wider view: The report’s findings are prompting serious questions about the path forward for traditional broadcasters, with some asking if radio and TV are being left behind entirely. The decline is also a major focus for industry-specific outlets, as publications like TVNewsCheck track the sector's response to the digital shift.
