Digital advertising now eats up the lion’s share of advertising dollars, and it doesn’t appear as if that will change anytime soon, according to data from MoffettNathanson Research.
Figures released by the company show that advertising in the United States grew by 11.6% overall during the first quarter. That was driven by a 13.7% uptick in digital advertising. Additionally, Advertising-based Video on Demand (AVOD) saw growth of just under 27%.
The news wasn’t all positive for every sector, however. Figures from MoffettNathanson show that terrestrial television saw a decline of 1.8% during the first three months of 2025. AM/FM radio was also down by that exact same figure.
“The growth of digital advertising continues to surprise even those of us who have tracked the industry for a long time,” MoffettNathanson says in a summary of the new report. “Just a decade ago, digital accounted for just 25% of U.S. advertising; now it makes up 75%. A remarkable shift driven by multiple factors, including the steady reallocation of media budgets from traditional brand awareness campaigns toward hypertargeted social media and intent-driven performance marketing via search and retail media.”
Additionally, the research firm states that more than 75% of all digital advertising in the United States will be spent with Google, Meta, Amazon, and TikTok in 2025. That figure commands roughly 65% of all advertising in the country.
The data shared by the company is part of its U.S. Advertising: The Funnel Has Collapsed Into One as Ad Growth Continues to Surprise to the Upside” report.
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