In 2025, the overall growth of the advertising industry is projected to slow due to economic uncertainty. Simply put, companies overall will not be increasing their 2025 advertising spending as they have in the past. This will offer a unique opportunity to leverage emerging trends to continue building strong connections with customers.
The advertising sector is expected to grow by 4.5% in 2025, a moderation from the 9% growth we saw in 2024. The slowdown is largely attributed to political changes and their ripple effects on the economy. In a market that’s not growing as rapidly, it’s more important to focus on high-impact strategies that maximize return on investment (ROI). For businesses in the kitchen and bath industry, this means crafting targeted campaigns that speak directly to your audience’s needs.
“It will be crucial to find ways to integrate digital touchpoints into marketing efforts, especially as consumer behavior shifts further toward online shopping and product research.”
Digital advertising, which accounted for 70% of the ad industry in 2024, is expected to grow by 8.4% in 2025 – down from 14.3%. This growth, while slower than the previous year, still represents a dominant force in advertising. One area to keep an eye on is commerce media, which has been a major contributor to digital growth in recent years. However, this sector is projected to slow down significantly in 2025, with growth expected to fall to 9.4% from the 18.3% pace seen in 2024.
For the kitchen and bath industry, this means that while digital advertising remains an essential tool, businesses may need to get more creative with their digital campaigns. It will be crucial to find ways to integrate digital touchpoints into your marketing efforts, especially as consumer behavior shifts further toward online shopping and product research.
Adapting Social Media Strategies
Social media advertising growth in 2025 is forecast at 5.4%, but this is subject to potential disruptions, especially with TikTok’s uncertain future. If TikTok faces challenges, ad dollars could shift to platforms like Meta (Facebook and Instagram), Snapchat, and Alphabet (Google’s parent company). For kitchen and bath businesses, this could mean an increased focus on Instagram and Facebook, two platforms that continue to perform well for visual industries like ours. Instagram’s visual-centric format makes it ideal for showcasing kitchen designs, cabinetry and bathroom remodels. The future of video content on these platforms, especially short-form content, is also promising for increasing engagement and building brands.
Artificial Intelligence-based products and services are beginning to disrupt the consumer experience, but the search advertising sector is still expected to see growth in 2025, projected at 4.6%. For small businesses in the kitchen and bath industry, this suggests that search engine marketing (SEM), particularly Google Ads, will continue to be a stable and reliable advertising strategy. While larger platforms such as Amazon and social media will dominate the digital landscape, small businesses should continue to invest in search advertising to capture high-intent traffic. Local search, in particular, will remain a vital tool for businesses targeting clients in specific geographic areas.
The decline of traditional audio advertising is expected to continue, but digital audio – especially streaming platforms and podcasts – will continue to grow. Kitchen and bath businesses should consider podcast sponsorships or ads as a way to connect with niche audiences. Podcasts that cater to home design, interior decorating or even DIY remodeling could be great opportunities to get your products and services in front of the right listeners.
While national television is expected to see a 6.1% decline, Connected TV (CTV) and digital extensions are growing rapidly. In fact, CTV is forecast to grow by 26%. As platforms like Amazon and Netflix continue to dominate the CTV space, this opens up a new avenue for video content to reach a broader audience.
If you’re looking to invest in television advertising in 2025, consider pivoting to digital streaming options where you can run targeted ads based on user behavior and precise location. Additionally, over-the-top ads are advertisements that are delivered to viewers through streaming services, such as Freevee, Twitch and Fire TV. OTT ads are delivered directly to viewers over the internet, bypassing traditional cable, broadcast and satellite TV platforms. OTT ads offer a customizable menu of options for targeting specific shows and zip codes with a cost effective 15-second commercial.
Alternative to Traditional Spending
Many businesses are shifting their focus to Search Engine Optimization (SEO) as a more sustainable, long-term alternative to traditional paid advertising. Unlike paid search ads or social media campaigns, which require ongoing investments to maintain visibility, SEO focuses on creating high-quality content and optimizing a website to organically attract traffic. The beauty of SEO lies in its ability to provide compounding returns over time, building a solid foundation of free traffic that can drive leads and sales without the ongoing cost of ads.
For example, a builder in northeast Ohio has been putting more focus into a strong SEO strategy. Organic traffic is up 420% comparing 2024 to 2023, meaning the content they are producing is driving thousands of potential customers to the Marks Building Co. website.
“There is simply no other form of marketing that can produce those types of results at the same cost afforded to us through SEO. We are going to further streamline our efforts and increase our content output to build up 2024’s numbers,” says Steve DiMatteo, the company’s marketing director.
SEO provides a reliable way to stay visible in a crowded marketplace, driving meaningful, organic engagement without relying on the unpredictability of ad performance or shifting media trends. By investing in content and website optimization, businesses can position themselves for lasting success.
As we adjust to new technologies, platforms and consumer behaviors, the key to success will be agility – quickly adapting to the changing landscape while maintaining a focus on high-quality, targeted advertising strategies. By embracing innovation, understanding shifting trends and staying true to what makes your brand unique, you can achieve meaningful growth in the years to come.
Denise Grothouse has an extensive background in international business, branding and marketing. Today, she specializes in advertising, marketing and branding in the kitchen and bath industry. She is the founder of Perfect Six Marketing, past v.p. of Grothouse, and a representative of the Washington, DC-based National Small Business Association Leadership Council.