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Consumer brands increase ad spend despite slower growth as retail media gains ground

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Consumer brands increase ad spend despite slower growth as retail media gains ground

Consumer goods brands are increasing advertising investment even as sales growth slows, with retail media emerging as a key beneficiary of the shift, according to new research from WARC Media.

The report, Global Ad Trends: The Cost of Being Seen, found that while the world’s largest advertisers are spending a smaller share of their revenue on advertising overall, consumer brands are moving in the opposite direction.

Across 25 major US-based advertisers, the combined ad-to-sales ratio fell from 6.1% in 2019 to 5.5% in 2025. Advertising spend rose by 56% over the period, but revenue increased even faster, up 73%, leading to a decline in advertising intensity.

Consumer goods brands, however, have continued to increase investment. The six biggest brands analysed by WARC – Coca-Cola, L’Oréal, Nike, PepsiCo, Estée Lauder and Procter & Gamble, increased advertising spend by 36% between 2019 and 2025, ahead of revenue growth of 29%.

While softening sales growth contributed to the rise in ad-to-sales ratio, WARC says budget shifts into retail media are helping to drive the trend. Money that was once allocated to trade and shopper marketing is increasingly being captured within measurable advertising channels, boosting recorded ad spend and raising advertising intensity.

“Only consumer goods companies, buffeted by softening sales growth and with trade budgets moving into measured media, are increasing ad intensity,” said Alex Brownsell, head of content at WARC Media.

The findings suggest consumer brands continue to see value in retail media despite a tougher trading environment. Rather than pulling back on marketing as growth slows, brands appear to be prioritising channels that offer a clearer link between advertising spend and sales outcomes.


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