Adobe (ADBE) Spends More on Ads as Investors Question Its AI-Driven Growth

Adobe Inc. (ADBE) sharply raised its advertising spending in 2025 as competition from AI tools increased and investor confidence weakened. The company spent $1.4 billion on advertising during the year, according to company filings. This marked an increase of more than 30% from the prior year and represented a larger share of revenue than many major technology peers.

By comparison, Adobe spent more on advertising as a percentage of sales than Salesforce (CRM) and Meta Platforms (META). It also exceeded more consumer-focused companies such as Uber (UBER) and Netflix (NFLX). This shift suggests Adobe is relying more heavily on broad brand awareness than it did in the past, acknowledging the need for product awareness among creators.

As one Adobe ad states, “All the creative AI you need, all in one place.”

Adobe was long viewed as the clear leader in creative software through products such as Photoshop and Acrobat. However, in recent years, simpler design tools from private firms like Canva and AI media generators have gained traction. As a result, Adobe shares are down more than 50% since early 2024 and recently reached their lowest closing price since 2019.

Promoting AI Tools to Protect Growth

Much of Adobe’s recent advertising focuses on its AI-powered features. Television ads highlight how Acrobat can now use AI to generate reports, marketing text, and charts. A YouTube (GOOGL) campaign features a video created by Adobe’s AI tools, including surreal scenes such as a dolphin swimming in a hotel pool. The company has also increased its presence at high-profile events like the Cannes and Sundance film festivals, where creative professionals gather.

^{Adobe’s Sales and Marketing costs have steadily increased since 2021, reflecting heavier investment in brand promotion and customer acquisition as AI competition intensifies.}

Adobe’s branding  also appears on billboards and on rental bikes operated by Lyft (LYFT). One ad promoting Adobe Express reads, “Quick. Easy. On-brand.”

Meanwhile, other companies are also spending heavily to promote AI tools. Alphabet released a holiday- themed ad made with its Veo 3 AI model, while Canva launched campaigns focused on fast and simple content creation.

In addition, Adobe’s advertising push coincided with the appointment of Lara Balazs as chief marketing officer. She previously held the same role at Intuit (INTU), a company known for aggressive consumer advertising. Intuit spends about 11% of revenue on ads, similar to consumer goods leaders like Coca-Cola (KO) and Procter & Gamble Co. (PG). Adobe has said its Firefly AI tools have been used tens of billions of times, but investors remain focused on whether that usage can translate into durable growth.

^{Adobe’s operating expenses have risen faster in recent years, narrowing the gap with gross profit and highlighting the growing cost of defending growth in a more competitive AI-driven market.}

Is ADBE Stock a Good Buy Right Now?

Adobe Inc. boasts a Moderate Buy consensus view among the Street’s analysts, with an average ADBE stock price target of $441. This implies a 66.57% upside from the current price.

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