Online advertising revenue made a notable comeback in the second quarter of 2025, signaling renewed confidence among marketers and advertisers after a period of cautious spending. This rebound reflects several key shifts in the digital marketing landscape that are shaping how brands connect with consumers today.
One of the standout trends is the evolving cost dynamics across different types of online ads. For instance, display prospecting — which targets new potential customers — saw a significant drop in cost per thousand impressions (CPM), falling by about 27% year-over-year earlier this year. Meanwhile, retargeting campaigns, which focus on re-engaging users who have already shown interest, experienced a much smaller decline in CPM at around 8%. This suggests that while brands remain careful about broad awareness efforts amid economic uncertainty, they continue to invest steadily in more conversion-driven tactics closer to purchase decisions.
Social media platforms also played an important role in this revenue resurgence. TikTok’s advertising costs began climbing back up starting March and peaked in April at levels just slightly below those seen last year. Despite some geopolitical uncertainties affecting its U.S. presence due to ongoing trade tensions between China and America, TikTok remains a powerful channel for advertisers aiming to capture younger audiences with engaging video content.
Another factor contributing to this positive momentum is how marketers are adapting their strategies amid changing privacy regulations and technology shifts. Google’s recent pause on phasing out third-party cookies has provided some short-term relief for campaign performance measurement and targeting accuracy. However, savvy advertisers are increasingly blending traditional cookie-based approaches with privacy-forward solutions like first-party data collection and contextual targeting to future-proof their efforts as consumer expectations around data privacy grow stronger.
The integration of artificial intelligence into search advertising is also reshaping how budgets are allocated. Google’s rollout of AI Mode for Search Ads allows marketers to combine paid ads with organic search strategies more seamlessly than before—helping them reach audiences more effectively across multiple touchpoints without overspending.
On the mobile front, global ad spend surged impressively by over 40% compared to last year’s second quarter alone. This growth was accompanied by rising competition reflected through higher CPMs globally (+14%), alongside increased click-through rates (+37%) driven largely by innovative rewarded ad formats that incentivize user engagement rather than interrupt it abruptly.
Interestingly, there remains a clear divide between iOS and Android ecosystems when it comes to installs versus revenue generation: Android dominates app installs but iOS continues leading significantly in terms of actual monetization—especially within categories like gaming or health & fitness apps where premium users tend to spend more despite fewer downloads overall.
All these factors combined paint an encouraging picture for online advertising heading into mid-2025: costs are stabilizing or becoming more efficient depending on campaign type; emerging technologies offer smarter ways to engage consumers; mobile continues its rapid ascent as an essential channel; and platforms like TikTok keep proving their value despite external challenges.
For businesses looking ahead toward Q3 and beyond, focusing on optimizing return on investment across both upper-funnel brand awareness initiatives *and* lower-funnel conversion tactics will be crucial—especially given recent dips in consumer sentiment nationwide that could temper spending habits temporarily but not halt digital engagement altogether.
In essence, online advertising isn’t just bouncing back—it’s evolving rapidly into something smarter and more nuanced than ever before as marketers leverage data insights alongside creative innovation under shifting market conditions.