Tech Giants Dominate the Market

The global advertising industry is expected to generate over $1 trillion in revenue for the first time in 2024, with Google, Meta, ByteDance, Amazon, and Alibaba earning more than half of this total. The digital advertising sector continues to outpace traditional media, driven by the dominance of tech companies.

Steady Growth Despite Economic Challenges

A report by GroupM, the media agency owned by WPP, projects a 9.5% increase in global advertising revenues for 2024, surpassing mid-year forecasts despite economic headwinds in key markets like the US and UK. Growth is expected to continue, with a 7.7% increase projected for 2025.

Key highlights:

• Digital advertising will account for 73% of total revenue by the end of 2024, growing 12.4% globally.
• When including digital streaming and publications, digital’s share jumps to 82%.
• Traditional media such as print, TV, and radio continue to decline or grow minimally.

Regional Advertising Trends

• United States: The world’s largest advertising market is forecast to generate $379 billion by 2025, despite higher borrowing costs and cautious consumer spending.
• China: Advertising revenues are expected to grow 13.5% in 2024, bolstered by initiatives to promote consumer confidence.
• United Kingdom: As Europe’s largest advertising market, revenues are forecast to grow 8.3% in 2024, reaching $53.2 billion.

Innovations Driving Growth

GroupM credits advancements in AI and automation for fuelling advertising growth, despite the absence of near-zero interest rates that supported earlier expansions. The report predicts further innovation in digital advertising will outpace the challenges faced by traditional media.

Source: (FT.com)