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Global advertising spending will surpass $1 trillion for the first time in 2024

The global ad spend could exceeded the trillion dollar mark for the first time in 2024, after an estimated growth of 8.2% compared to 2023. This is according to the report “Global spend outlook 2023/24: Withstanding turbulences” by the British consultancy Warc, which calculates investment growth of 4.4% for this year. to $963,500 million. As the study points out, Alphabet, Amazon, Meta, Bytedance and Alibaba focused more than half of global investments (50.7%) on advertising this year. In 2024 These five companies will see their ad revenue increase by 10.7%So you will control 51.9% of the market.

«High interest rates, skyrocketing inflation, armed conflict and natural disasters have created a bitter cocktail over the past 12 months, but recent earnings releases suggest that the advertising market has weathered the turmoil and is now entering a new phase“, explained James McDonald, Director of Data, Intelligence and Foresight at Warc and author of the report. «Our new numbers show that the development of just five companies carries very high weight for the future of the entire industry and that these companies are poised to post big growth in the coming monthsMcDonald adds.

Investment by means

Responsible for the increase in global investment is the social networksaccounting for one-fifth of the total, with total spending of $227,200 million in 2024. It’s in this area that it excels Meta with a 64.4% share, followed by Bytedance, owner of TikTok, with a 17.6% share.

retail media and the Connected Television (CTV). In the case of According to the report, retail media spending is expected to grow between 10.2% this year and 10.5% in 20204, to reach $141,700 million. Currently, Amazon is the dominant player with an expected 37.2% share, followed by Alibaba. This is what the study suggests The CTV will grow between 11.4% in 2023 and 12.1% in 2024, totaling $33,000 million. «The positive development of these media is related to the value advertisers place on using their own data to target the right person with the right message at the right time.says James McDonald.

Regarding connected television, Warc points out: “The owners of connected television platforms compete primarily for television budgets and are not so much winning investment shares from digital channels as social networks or generating new budgets as is the case with retail media. This medium has grown tenfold in volume over the past decade, while advertising revenue from networked television has only tripled over the same period«.

By regions

The Election advertising will be one of the factors driving investment in the United States in 2024, which according to the study will lead to an overall investment growth of 7.6% in North America. This year the estimated growth is 2%.

On the other hand, that’s expected Advertising investment in Europe will grow by 0.6% in 2023 and by 3.6% in 2024, driven by the foreseeable improvement in the economy and the Eurocup celebrations. Von Warc they point out Great Britain, the region’s largest advertising market, will see a 1% decline this year. On the contrary, it is appreciatedThe advertising markets of Spain (+5.6% in 2023), Italy (+3.2%) and Germany (+2.7%) are showing positive growtheither.

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