2025 Ad Budgets Are Moving Toward Social, Retail Media and CTV
January opened with a clear message for marketers: 2025 would not be a year for putting every dollar into one channel and hoping the old playbook still worked. IAB’s 2025 Outlook projected overall ad spend growth, while calling out social media, retail media and connected TV as faster-growing areas. Marketing Dive’s early-year trend coverage also pointed to a year shaped by AI, creator content, retail media and changing consumer attention.
For small and medium sized businesses, that matters because the same budget now has to do more jobs. Search may still capture intent. Social may create demand. Retail media may close the loop for ecommerce and CPG-style sellers. CTV may help a regional brand look bigger than it is. The mistake is treating those channels as separate islands.
The budget question changed
The old question was, “How much should we spend on Google?” The better 2025 question is, “Where does the customer actually move from discovery to trust to action?” A local service business may still depend heavily on paid search, but that search demand might be influenced by YouTube, reviews, Facebook, Instagram, TikTok or a creator recommendation before the customer ever types a query.
Brand Fuel Digital CEO/Founder Paul Burns says the real opportunity is not chasing every new ad format, but building a budget that can learn. “SMBs should protect their strongest conversion channels, then reserve a test budget for where attention is clearly moving. Social, CTV and retail media can all help, but only if the business has a clear offer, tracking discipline and a plan for what success looks like.”
What SMBs should do with the outlook
- Keep search accountable. Paid search and SEO still matter, but they should be measured against qualified leads, booked calls, revenue and repeatable demand.
- Use social for proof and discovery. Social campaigns work best when they show the product, explain the service or make the brand feel credible before the search happens.
- Test retail media if commerce data matters. Ecommerce brands should watch whether marketplaces and retailer networks can provide better product-level feedback than broad display buys.
- Do not overspend on awareness without measurement. CTV can be powerful, but SMBs need practical guardrails around geography, frequency and follow-up demand.
Brand Fuel Digital’s View
January’s budget outlook was less about one winning channel and more about flexibility. The healthiest SMB media plan in 2025 is a portfolio: one or two reliable conversion engines, one or two demand-creation tests and a measurement layer that shows whether those channels work together.
The businesses that make smarter moves will not be the ones with the biggest budget. They will be the ones that understand the buying journey, keep creative fresh and move dollars based on evidence instead of habit.
Sources: IAB 2025 Outlook and Marketing Dive’s 2025 marketing trends outlook.