The world’s largest brand owners are spending a declining share of their sales revenue on advertising, with consumer goods companies the main exception, according to a WARC Media report published on October 15.
The report, Global Ad Trends: The Cost of Being Seen, examines changes in advertising intensity among 25 of the world’s largest advertisers.
Across 25 large US-based advertisers, the combined advertising-to-sales ratio fell to 5.5% in 2025 from 6.1% in 2019.
Their combined advertising expenditure nevertheless increased 56% over the period, while revenue grew 73%, meaning advertising budgets did not keep pace with sales growth.
WARC forecasts global advertising spending will rise 11.9% this year to $1.34 trillion. Adjusted for inflation, global spending has increased 61.3% over the past 25 years, driven by channels including retail media and platform advertising.
Big technology companies drive decline
The combined advertising-to-sales ratio of Alphabet, Meta, Microsoft and Netflix fell to 7.4% in 2025 from 13% in 2019, while their combined revenue rose 146%, from $379 billion to $931 billion.
Had the four companies maintained their 2019 advertising-to-sales ratio, they would have spent $121 billion on advertising in 2025, or $52 billion more than they actually spent, according to WARC.
Alex Brownsell, head of content at WARC Media, said companies including Meta, Mastercard and McDonald’s were allocating a diminishing share of revenue to advertising despite growth in the global advertising market.
“The global ad market is expanding rapidly, but companies from Meta to Mastercard and McDonald’s are allocating a diminishing share of revenue to advertising,” he said.
Brownsell said the trend reflected a two-speed marketplace, in which advertising spending by smaller businesses and cross-border e-commerce sellers on digital platforms was growing faster than investment by large brands.
Consumer goods companies increase advertising intensity
The six consumer goods companies examined by WARC — Coca-Cola, Estée Lauder, L’Oréal, Nike, PepsiCo and Procter & Gamble — showed a different trend.
Five increased their advertising-to-sales ratios between 2019 and 2025, while PepsiCo’s ratio remained broadly flat.
The group’s combined ratio rose from 11.6% in 2023 to 12.5% in 2025, as softer sales growth and the movement of budgets into channels such as retail media increased advertising intensity.
Between 2019 and 2025, the six companies’ combined advertising spending increased 36%, exceeding their 29% revenue growth.
Other advertisers show mixed trends
The remaining 15 advertisers, excluding technology and consumer goods companies, showed a less consistent pattern.
Their average advertising-to-sales ratio, weighted by revenue, was flat to slightly higher, but 10 companies reduced their ratios between 2019 and 2025.
In the automotive sector, Ford’s ratio fell from 2.3% to 1.6%, while General Motors’ declined from 2.7% to 1.7%.
Among payments companies, Visa’s ratio dropped from 4.8% to 4.2%, and Mastercard’s fell from 5.6% to 4%.
McDonald’s ratio declined from 1.7% to 1.3%, while Target’s fell from 2% to 1.4%.
Ratios also fell at Marriott, Booking Holdings, Eli Lilly and The Home Depot. Amazon and Yum! Brands remained broadly flat, while Walmart, Starbucks and Expedia recorded increases.
WARC identifies three drivers of advertising intensity
WARC identified three main factors behind changes in advertising intensity.
First, weaker sales can push up the advertising-to-sales ratio when companies maintain spending despite falling revenue.
Second, budgets previously held by sales teams for trade and shopper marketing are moving into retail media and being recorded as advertising expenditure.
Third, companies that own their audiences, such as Alphabet and Meta, can expand without having to pay other platforms to reach consumers.
