Search remained the largest force in digital advertising in 2025. However, its growth slowed as total U.S. ad revenue climbed to a record $294.6 billion.
Search still dominates. Search generated $114.2 billion, accounting for 38.8% of total digital ad revenue, according to the latest IAB/PwC Internet Advertising Revenue Report. But growth slowed to 11%, down from 15.9% in 2024, as advertisers shifted more budget into faster-growing formats and as AI began reshaping how users discover information.
Overall market growth accelerated as the year went on. It climbed from 12.2% in Q1 to 15.4% in Q4. The fourth quarter alone brought in $85 billion, even without major cyclical events like the U.S. election or the Olympics, which boosted 2024.
Video, social, and programmatic all grew faster than search. Digital video revenue jumped 25.4% to $78 billion, making it the fastest-growing major format. Social rose 32.6% to $117.7 billion, while programmatic increased 20.5% to $162.4 billion — continuing the shift toward automated, performance-driven buying.
The market is more concentrated. The top 10 companies now control 84.1% of U.S. digital ad revenue, up from 80.8% a year ago, reflecting the advantages of scale, first-party data, and AI-driven platforms.
AI is no longer just a tool layered onto campaigns. AI is increasingly shaping discovery, media buying, and measurement as consumer journeys fragment across platforms.
Why we care. Search still delivers the most scale, but it’s no longer growing the fastest. More budget is flowing into video, social, and programmatic, where automation and AI are more deeply embedded. That means more competition for budget, less visibility into performance, and a greater need to prove incrementality.
About the data. The IAB/PwC report is based on U.S. internet advertising revenue data compiled across the industry.
The report. Internet Advertising Revenue Report Full-year 2025 results (PDF)
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