The digital ad market is off to a strong start in 2025, as major platforms in tech posted solid ad revenue gains in the first quarter. From search and video to retail media and social platforms, advertising remains a steady source of growth.

Google reported $66.9 billion in advertising revenue for Q1, marking an 8.5% jump from the same time last year. Its “Search and Other” segment brought in $50.7 billion alone, up nearly 10% year-over-year. 

YouTube’s ad revenue reached $8.93 billion compared to $8.0 billion in Q1 2024. Despite this growth, the platform slightly missed analyst expectations of $8.97 billion, according to data from StreetAccount.

Google’s total revenue rose 12% to $90.2 billion, beating Wall Street’s forecast of $89.12 billion. On Alphabet’s earnings call, CEO Sundar Pichai credited the growth to strong user engagement and the rollout of AI Overviews in Search, which the company says now reaches over 1.5 billion users monthly. “We saw continued double-digit revenue growth,” Pichai noted.

Meta drives higher ad revenue by increasing both ad load and prices

In its earning call, Meta reported $42.31 billion in revenue in Q1 2025, up 16% from the previous year. It beat Wall Street’s estimate of $41.36 billion. Ad impressions across Facebook, Instagram, and other Meta platforms increased by 5%, and the company raised its average ad price by 10%. That means more ads were shown, and advertisers paid more per impression.

User growth continues to be a major factor here. Meta says it hit 3.43 billion daily active users across its family of apps in March. Threads, Meta’s X-like app, continues to gain traction with 350 million monthly active users, up from 320 million. 

Meta wants to capitalize on the growing popularity of Threads. Ads are now running on Threads, though Meta said they won’t have a significant revenue impact yet.

Amazon’s ad business outpaces its core retail segment

Amazon’s ad revenue rose 18% year-over-year to just under $13.9 billion, beating analyst expectations of $13.7 billion. This growth now puts Amazon firmly in third place in the global digital ad market, behind Google and Meta.

With this figure, Amazon's ad revenue outpaced its core retail business, which grew by 9%. CEO Andy Jassy said the company’s broad ad offerings now reach over 275 million people in the U.S. alone. “We’re working hard to be the best place for brands of all sizes,” Jassy told analysts.

The company’s total Q1 revenue was $155.7 billion, up 9%, beating analyst forecasts.

Reddit leans into AI and new ad placements to grow its ad business

Reddit’s ad revenue surged 61% year-over-year, reaching $358.6 million in Q1. This boost was tied to its strong visibility on Google and a growing logged-in user base. 

Reddit says daily users rose 31% to 108 million, and weekly users now exceed 400 million. Like Meta, Reddit is aiming to attract more dollars by offering more targeting options. Considering its growing user base, the company is now allowing ads to appear between comments. 

Reddit also continues to integrate AI into its platform. “Reddit Answers,” its AI-powered search tool backed by Google Cloud’s Gemini models, hit 1 million weekly active users and is expected to roll into broader Reddit search features later this year.

Microsoft’s advertising business keeps expanding

Microsoft’s Q3 2025 earnings showed strength in its advertising segment, especially in search and news. Revenue from those categories grew 21%, and even faster (23%) when adjusted for currency. Microsoft’s total revenue hit $70.1 billion, beating analyst forecasts of $68.53 billion.

While Microsoft’s ad business is smaller than Google’s or Meta’s, it continues to grow thanks to its integration with tools like Bing, Edge, and AI-based features.

What this means for advertisers

Q1 2025 shows that digital advertising across search, social, video, retail media, and community platforms isn’t slowing down. Advertisers are still spending, platforms are refining their ad tools, and user engagement remains strong.

Google and Meta still dominate, but platforms like Amazon and Reddit are scaling fast. With AI playing a massive role in ad delivery and platform features, the second quarter may bring even more changes to how campaigns are planned, served, and measured.

‍

Get Smarter at Marketing
The Keyword weekly update → your inbox
Writer, The Keyword
Nelson Oboh
HOME PAGE
Digital Ads

‍

01
How can your services help improve my website's performance?
Our services enhance your website's performance by optimizing load times, improving user experience, and ensuring seamless functionality across all devices. We specialize in custom Webflow builds that are tailored to your specific needs, ensuring your site is both visually appealing and highly efficient.
02
What is the process for starting a project with your team?
Our process begins with an initial consultation to understand your goals and requirements. We then conduct a thorough analysis of your current setup, followed by a collaborative planning phase where we outline the project scope and timeline. Once the plan is approved, our team gets to work on designing and developing your custom Webflow solution.
03
How do you ensure the security of the websites you develop?
We ensure the security of the websites we develop by implementing robust security protocols, including SSL encryption, regular security audits, and secure coding practices. Our team stays updated with the latest security trends and threats to proactively protect your site from vulnerabilities.
04
What support do you offer after a project is completed?
After a project is completed, we offer comprehensive support to ensure your website continues to perform optimally. This includes regular maintenance checks, updates to keep your site secure and up-to-date, and troubleshooting any issues that may arise. Our team is always available to provide guidance and assistance as needed.
05
What is your approach to handling website redesigns?
Our approach to website redesigns involves a comprehensive analysis of your current site to identify areas for improvement. We prioritize user experience and performance, ensuring that the redesign aligns with your brand's goals and enhances functionality. By leveraging the capabilities of Webflow, we create visually stunning and efficient websites tailored to your specific needs.