Today's digest discuses the launch of PayPal's UK Ad business, WARC's updated ad spend forecast, OpenAI's funding, and removal of diversity references from WPP's annual report.

PayPal to Launch UK Ad Business in July 

PayPal will be launching its ad business in the UK market in July, the company revealed on Tuesday at Advertising Week Europe 2025. The network will leverage transaction data, allowing advertisers self-service capabilities on dynamic creative ads and shoppable formats.

WARC Downgrades Ad Spend Outlook by $20bn

WARC’s latest forecast update highlights potential challenges ahead, with an ad spend downgrade of USD$20bn (£15.48bn) across all media. Yet, digital advertising continues to thrive despite regulatory scrutiny and intervention, driven by Alphabet, Amazon, and Meta.

Search advertising is projected to account for 21.7% of the global ad market, with spend to rise by 8% this year. Social media remains the largest advertising medium, set to contribute to a quarter of all global ad spend in 2025, while retail media is set to be the joint-fastest growing sector, alongside CTV and streaming.

Social media platforms are poised for a 12.1% increase in advertising revenue this year, reaching USD$286.2bn (£218bn) TikTok, Instagram, and Facebook are expected to see strong gains, with growth rates of 23.6%, 17.0%, and 8.6%, respectively. This surge is being driven by advertisers leveraging generative AI to enhance targeting and engagement.

Meanwhile, regulatory challenges persist. The European Union’s Digital Markets Act (DMA) could impose fines on Apple and Google, while the UK’s Digital Fairness Act threatens personalised advertising. Additionally, the US antitrust ruling against Google signals growing legislative hostility toward major tech firms. Despite these concerns, forecasts remain optimistic, with digital advertising continuing its upward trajectory.

OpenAI secures $40bn in funding 

OpenAI has raised USD$40bn (£30bn) in a funding round led by SoftBank, pushing the company’s valuation to USD$300bn (£232bn). This marks the largest private tech investment in history, according to CNBC.

OpenAI will receive USD$10bn (£7.7bn), with SoftBank contributing USD$7.5bn (£5.9bn) and an additional USD$2.5bn (£1.9bn) from an investor syndicate, according to Bloomberg. The remaining amount is contingent on OpenAI officially converting into a for profit company by the end of the year. Failure to do so could cost the company a quarter of the investment.

The funding follows OpenAI’s USD$500bn (£387bn) Stargate venture, a collaboration with SoftBank, Oracle, and Abu Dhabi’s MGX, aimed at developing AI datacentres over the next four years.

WPP Removes Diversity References from Annual Report

WPP has dropped references to ‘diversity, equity, and inclusion’ from its latest annual report, amid growing scrutiny of such policies from the Trump administration.

The British advertising giant, whose portfolio includes J Walter Thompson, Ogilvy, and Grey, counts the US as its largest market. In the report released on Friday, CEO Mark Read acknowledged that ‘much has changed over the last year’ due to shifting political landscapes.