Global Tech Giants Spend Less On Advertising In 2025
Major technology firms are reducing their advertising-to-revenue ratios as retail and digital platforms capture more market share.
Updated on Oct. 16, 2026 in Advertising
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In 2025, 25 major U.S.-listed corporations saw their advertising expenditure as a proportion of revenue fall to 5.5%. This shift occurs as tech giants and retailers increasingly leverage their own customer platforms to monetize audiences.
Why it matters
Domestic media publishers and broadcasters are losing advertising support as digital platforms and retail loyalty programs offer brands more direct access to consumers near the point of purchase. This structural change reshapes how global marketing budgets are allocated within the $1.34 trillion industry.
Alphabet, Meta, Microsoft, and Netflix generated a combined $931 billion in 2025 with an advertising-to-sales ratio of 7.4%. Meanwhile, Shoprite generated R593 million in marketing revenue during the 26 weeks ending December 28, 2025.
The players
Alphabet
Alphabet is the parent company of Google and remains one of the largest players in the global digital advertising market.
Meta
Meta operates major social networking platforms that serve as primary destinations for digital advertising spend.
Microsoft
Microsoft is a multinational technology corporation that manages extensive digital platforms and search advertising services.
Netflix
Netflix is a major streaming service provider that has recently integrated advertising into its revenue generation model.
Shoprite
Shoprite is a prominent South African retailer that is increasingly monetizing its customer data and media assets.
The details
Companies are shifting strategies by using their own platforms and customer data to sell ad space, effectively becoming both the advertiser and the ad host. Retailers are particularly successful in this space by utilizing data from digital delivery platforms and loyalty programs to reach shoppers directly.
Timeline
2019 served as the baseline for advertising-to-sales ratio comparisons.
2022 saw digital advertising capture 36.1% of the South African market.
2023 saw South African internet advertising revenue reach R17.7 billion.
November 2025 marked the publication of a Competition Commission report on media and digital platforms.
December 28, 2025, was the end date for the Shoprite marketing and media reporting period.
Market Landscape
This trend aligns with the Competition Commission's 2025 report on media and digital platforms, which details the migration of advertising funds away from local publishers. It signals a permanent shift in market power toward platforms that control direct customer relationships.
Consumers will likely see more personalized advertising and offers as retailers transition from standard brick-and-mortar operations into media-selling platforms. This evolution may increase the frequency of targeted marketing messages across digital platforms used by shoppers.
The takeaway
As companies prioritize their own customer platforms over traditional media, advertisers are moving budgets to where they can reach consumers at the point of purchase. Readers should expect brands to lean more heavily on loyalty program data to drive these direct marketing efforts.
What happens next
Shoprite is expected to reach its internal target of generating more than R1 billion in annual media and marketing revenue as the retailer continues to grow its platform activities.
Further reading
For more analysis on this shift, visit the Advertising section.
Source note: This article includes information reported by Moneyweb.
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