Big brands are not all spending the same way. A report from WARC Media, covered by Marketing Dive, describes a “two-speed marketplace”: consumer packaged goods companies are raising advertising as a share of sales while several tech giants pull back. The details show where WARC sees ad dollars moving.
Consumer Goods Giants Lean Into Advertising
The top consumer goods marketers lifted their ad-to-sales ratio from 11.6% in 2023 to 12.5% in 2025, aiming to offset softer demand and fund retail media. From 2019 to 2025, their combined ad spending rose 36% while revenue rose 29%. WARC studied PepsiCo, Coca-Cola, Estée Lauder, L’Oréal, Nike and Procter and Gamble, and all but PepsiCo increased their ratios.
Why Tech Platforms Are Spending Less
- Alphabet and Meta cut their combined ad-to-sales ratio from 13% in 2019 to 7.4% in 2025 while revenue grew 146%.
- Across 25 major U.S. advertisers, the overall ratio fell to 5.5%.
- WARC says platforms like Google, Meta and Netflix own attention rather than renting it.
- Retail media also shifts budgets once labeled trade spend into the advertising column.
What It Means for Small and Mid-Size Marketers
WARC stresses brands are not abandoning advertising: global ad spend is forecast to grow 11.9% to $1.34 trillion this year, with the strongest growth among smaller businesses and cross-border e-commerce sellers. Competition for attention is rising, and retail media is becoming a core channel rather than an add-on.
- Protect brand-building spend even when demand softens.
- Test retail media if you sell through large marketplaces.
- Measure ad-to-sales ratio against your own revenue goals, not big-brand benchmarks.
Frequently Asked Questions
What is an ad-to-sales ratio?
It is advertising spend divided by revenue, showing how much of each sales dollar goes to advertising.
Why did consumer goods brands raise ad spend?
WARC cites softer demand, price-sensitive shoppers and increased retail media investment.
Is global ad spend growing?
Yes. WARC forecasts 11.9% growth to $1.34 trillion this year.
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