Stockholm — Sweden’s media investment landscape has cooled slightly this summer, with a 2.9% decline in advertising and marketing spending during June and July 2025 compared to the same period last year, according to new data from Sveriges Mediebyråer, the national association of media agencies.
While not a dramatic downturn, the dip signals a recalibration in one of Europe’s most digitally advanced advertising markets. As economic uncertainty lingers and consumer habits evolve, Swedish brands are re-evaluating where and how they allocate their media budgets—favouring agility, precision, and sustainability over traditional broad-reach campaigns.
A Modest Dip in a Maturing Market
The 2.9% drop marks a shift from the steady growth seen in previous years, when digital expansion largely offset declines in legacy media. This summer’s figures reflect a more cautious approach among advertisers, particularly in sectors sensitive to macroeconomic fluctuations such as retail, automotive, and real estate.
“Marketers are no longer just shifting budgets—they’re scrutinizing them,” said Malin Andersson, senior analyst at MediaEcon Sverige. “We’re seeing a focus on ROI, audience quality, and brand safety, especially in a high-inflation environment.”
Despite the decline, the Swedish media market remains resilient, with total investment in advertising projected to stabilize in the second half of 2025 as brands prepare for the autumn and holiday seasons.
Channel Performance: Winners and Losers
The overall dip in investment masks stark contrasts across media channels, revealing deeper structural shifts in how Swedes consume content—and how advertisers respond.
Traditional Print and Linear TV: A Long Goodbye
Print media continues its decades-long decline. Since 2005, newspaper advertising revenue has plummeted by nearly 80%, and this summer saw another 6.4% year-on-year drop. Even free newspapers like Metro and regional titles are struggling to retain ad partners.
Linear TV, while showing relative stability in ad spend, faces declining viewership—especially among under-35s. Public broadcaster SVT and commercial giant TV4 report that live viewership is down 12% compared to 2024, with audiences migrating to on-demand platforms.
“TV isn’t dead, but it’s no longer the default,” said Erik Lindgren, media director at ad agency Forsman & Bodenfors. “Advertisers still use it for broad awareness, but they’re pairing it with digital follow-ups to drive conversion.”
Digital Video and Streaming: The New Prime Time
Digital video advertising is now the dominant force in the video ad market, forecast to reach $1.2 billion in 2025. Platforms like YouTube, Viaplay, and C More are capturing the lion’s share of video ad budgets, as advertisers target audiences who increasingly consume content on-demand.
“Streaming is where attention lives,” said Lina Johansson, head of digital strategy at Telia Company. “We’re investing heavily in short-form video, influencer integrations, and interactive ad formats that work within the user experience.”
Subscription-based services are also experimenting with ad-supported tiers, opening new monetization paths—and new opportunities for targeted advertising.
Podcasts and Online Audio: Steady Growth
Podcasts have emerged as a stable and effective channel, particularly for reaching educated, urban audiences. Sveriges Radio’s investigative series and commercial hits from Acast and Podimo continue to draw strong listener engagement, with ad revenue up 9% year-to-date.
“Audio is intimate. It builds trust,” said Anna Karlsson, marketing lead at Nordea. “We’ve seen higher recall and brand affinity from podcast campaigns than from many digital display formats.”
Out-of-Home (OOH) and Experiential: Premium Presence
While digital dominates, premium traditional formats like OOH and experiential marketing are holding their ground—especially for luxury, automotive, and sustainability-focused brands.
In 2025, top advertisers are adopting a 60-25-15 model: 60% digital, 25% premium traditional (including high-impact OOH), and 15% experiential activations. This blend allows for broad reach, emotional resonance, and measurable engagement.
“People still live in the physical world,” said Marcus Holm, creative director at Clear Channel Sweden. “A well-placed digital billboard in Stockholm Central or an immersive AR experience at a festival can cut through the noise better than another banner ad.”
Key Trends Shaping the 2025 Landscape
Several macro forces are reshaping Sweden’s media ecosystem:
- Generational Divide
Older Swedes still tune into morning radio and read print newspapers, but younger audiences are almost exclusively digital-native. Over 85% of 18–34-year-olds consume video content via mobile devices, and TikTok, Instagram, and YouTube dominate their attention.
- Sustainability as a Selling Point
Swedish consumers rank among the most environmentally conscious in Europe. Brands that integrate sustainability into their messaging—such as H&M’s “Climate Positive” campaign or IKEA’s circular economy push—are seeing stronger engagement, especially on digital and social platforms.
- Data-Driven, Programmatic Dominance
Programmatic advertising now accounts for over 70% of digital display spending. AI-powered tools enable real-time bidding, contextual targeting, and personalized creative—maximizing efficiency in a cost-conscious market.
“Every krona counts,” said Sofia Nilsson, CMO at SEB. “We’re using AI not just to target, but to test messaging, optimize creative, and measure sentiment in real time.”
- Policy Shifts and Consolidation
Recent changes in media policy have redirected public subsidies toward local news providers, helping sustain community journalism. Meanwhile, industry consolidation continues: Schibsted’s acquisition of the TV4 Group earlier this year has created a powerful Nordic media conglomerate, reshaping competition and ad inventory.
Looking Ahead: The Road to 2025 and Beyond
Analysts expect media investment to stabilize in the coming months, with a modest recovery possible by Q4. The key drivers will be:
- Accelerated digital migration, especially in video and mobile.
- Growth in branded content and native advertising, particularly in podcasts and social media.
- Cross-channel integration, blending digital precision with traditional brand-building.
- Regulatory adaptation, as the European Media Freedom Act (EMFA) takes effect in August 2025, potentially reshaping public service advertising and media ownership rules.
“The EMFA could be a game-changer,” warned media policy expert Johan Eriksson at Lund University. “It may limit how much public money can go to commercial broadcasters and increase scrutiny on cross-ownership. That could shift hundreds of millions in ad spend.”
The Bigger Picture: A Digitally Mature, Evolving Market
Sweden’s media market in 2025 is not in crisis—it’s in transition. With 98% mobile broadband penetration, a highly educated population, and strong digital infrastructure, the country is a testing ground for next-generation advertising models.
Brands that succeed are those embracing agility, authenticity, and innovation—leveraging AI, sustainability narratives, and multi-touchpoint strategies to connect with increasingly discerning audiences.
“The old hierarchy of media is gone,” said Andersson. “Digital isn’t the future—it’s the present. The question now is not if you go digital, but how smartly you do it.”
As summer fades, Sweden’s media sector is not retreating—it’s recalibrating. And for forward-thinking advertisers, the opportunities have never been greater.
Nordic Business Journal
Covering the business of media, advertising, and digital innovation across The Nordic Region.
August 28, 2025