We’ve acquired Video Game Insights (VGI)!
Sensor Tower · Marco Scacchi · February 2025
Ad Spend in Transition: Europe’s Outlook for 2025
In 2024, Europe’s advertising landscape reflected economic uncertainty, shifting consumer priorities, and the growing influence of new technologies. Software was among the fastest-growing categories by ad spend, driven by AI innovation, while sectors like automotive stagnated under regulatory and economic pressures. In 2025, ad investment is set to grow in areas such as AI-driven solutions and essential shopping, while categories like apparel and electric vehicles may see further cutbacks. Across industries, advertisers might further accelerate spending on video-first platforms to capture consumer attention in an increasingly competitive market.
Key Takeaways:
European ad spend presented a mixed picture in 2024, with shopping remaining the largest category but growing modestly at 4% YoY across the UK, Germany, and France. Software, by contrast, surged nearly 30% YoY
Adobe, Google, Canva, and Shopify drove software ad spend growth. Adobe’s ad spend rose 140% YoY for products like Acrobat and Document Cloud, while Google dedicated 40% of its ad spend to promoting its Gemini AI Chatbot. As AI advances rapidly, competition is likely to remain intense, suggesting that software ad spend could grow further in 2025
Automotive ad spend stagnated at 0% YoY in 2024, with brands like Fiat (-42%) and Nissan (-33%) cutting back. Used car retailers were a bright spot, with ad spend up 95% YoY. High EV prices and economic uncertainty are likely to keep advertising for pre-owned vehicles strong in 2025
Rising consumer price sensitivity likely shaped modest shopping ad growth in 2024. Essentials like coupon rebates and pet food led growth, while apparel struggled with less than 1% growth. Budget-friendly, fast-fashion platforms like Shein increased ad spend by 30% YoY
Revolut’s ad spend ranking rose dramatically from position 387 to 6 in France and from 278 to 18 in Germany, showcasing fintech’s growing dominance in European advertising
While regulatory scrutiny on TikTok has intensified, an EU-wide ban remains unlikely due to legal constraints. Country-specific bans, however, remain possible, as seen recently in Albania
For more information, request the full report from reports@sensortower.com.
Written by: Marco Scacchi, Senior Qualitative Insights Analyst, EMEA
Date: February 2025