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Investments in AI and talent will drive 2025 agency budgets
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Ad Age
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This article was originally published on AdAge and can be seen here.

Ad Age Amp members are focusing on culture and human capital, data and innovation, creativity and beyond to be well positioned for the future

As we roll into Q4 and look forward to 2025, agencies are in the thick of decision-making on which investments will propel them forward in the coming year. Despite a backdrop of economic uncertainty, plus somewhat volatile market conditions, ad executives feel well-positioned for growth, and projections have given them confidence: In June, global media investment firm GroupM forecast that ad spend will grow by 7.8% in 2024, pushing projected global ad revenue to $989.8 billion by year-end.

With an even sunnier outlook for 2025, GroupM also predicted that this figure would surpass $1 trillion in the coming year, with both globalization and artificial intelligence advancement playing key roles.

So it’s no surprise that agencies are doubling down on growth opportunities by investing where it counts, whether it’s talent and culture, data and innovation, or production and AI. For this month’s spotlight, we spoke to leaders from the Amp community to find out where their dollars are going in 2025, and their views on the following major opportunities for the industry:

Macaela VanderMost, founder and CEO, Newfangled Studios

In 2025, Newfangled Studios will double down on what makes us a leader in creative production—by investing heavily in three core areas: social media, digital video and quick-turn production. These specialized “studios” are part of our strategy to stay ahead of the rapidly changing media landscape, ensuring we create platform-specific work that drives engagement where audiences spend their time.