The global advertising market is set to exceed $1 trillion in revenue for the first time in 2024, according to a report by GroupM, a media agency under WPP. The tech giants—Google, Meta, ByteDance, Amazon and Alibaba—are projected to capture more than half of the total, underscoring the dominance of digital platforms.
Why we care. The $1 trillion milestone underscores the growing dominance of digital platforms, with tech giants like Google and Meta capturing the lion’s share of ad spend. To stay competitive, you must adapt to the digital-first landscape, leverage AI for smarter targeting and align with shifting consumer behaviors while navigating economic uncertainties.
Key Stats (according to GroupM):
- 2024 Growth: Global ad revenues are forecasted to rise by 9.5%, with further growth of 7.7% in 2025.
- Digital Share: Digital ads (including streaming, online news, and magazines) could make up 82% of total revenue in 2025.
- US Market: The largest ad market globally, the US, is set to reach $379 billion in revenue by 2025.
- China’s Surge: China’s ad market is expected to grow by 13.5% in 2024, hitting $204.5 billion.
- Decline of Print: Print ad revenue will drop by 4.5% next year and a further 3% in 2025.
The tech-driven edge. Advancements in AI and automation are expected to fuel innovation, offsetting economic headwinds and higher borrowing costs. These technologies are anticipated to enhance personalization, optimize ad spend and streamline campaign execution.
Challenges ahead:
- Economic Uncertainty: Tough conditions in developed markets like the US and UK may temper growth.
- Geopolitical Risks: Factors such as tariffs and currency fluctuations could pressure consumer goods and luxury ad spend.
What’s next? The report suggests that advertising growth will remain centered on tech platforms, with their share increasing alongside advancements in AI. In markets like China, initiatives to boost consumer confidence could unlock pent-up demand, offering further growth opportunities.
The shift toward digital-first strategies signals a transformative era for advertisers, with winners likely emerging from their ability to leverage data and adapt to evolving consumer behaviors.