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Global Ad Revenue to Hit $989.8B in 2024, Surpass $1 Trillion in 2025: GroupM Forecast

June 11, 2024 at 6:03:42 PM

TL;DR Global ad revenues are projected to grow by 7.8% in 2024 to $989.8 billion, surpassing the trillion-dollar mark in 2025 with a 6.8% increase to $1.1 trillion. The U.S. and China, contributing 57.1% of global ad revenue, are key growth drivers. U.S. ad spend is expected to reach $365.9 billion in 2024, while China's ad market grows 14% to $199.4 billion. Digital ad spend will dominate, making up 70.6% of total global ad spend.

Global Ad Revenue to Hit $989.8B in 2024, Surpass $1 Trillion in 2025: GroupM Forecast

Global advertising revenue is projected to grow by 7.8% in 2024, reaching $989.8 billion, and is expected to surpass the trillion-dollar mark in 2025, according to GroupM’s 2024 Global Midyear Forecast. This growth is driven largely by the U.S. and China, which together account for 57.1% of global ad revenue and are home to 22 of the top 25 global media sellers.

Key Projections

2024: Global ad revenue to grow by 7.8% to $989.8 billion.
2025: Revenue expected to increase by 6.8% to $1.1 trillion, surpassing the trillion-dollar mark a year earlier than previously forecasted.

U.S. and China

U.S.: Ad revenue to reach $365.9 billion in 2024, growing at a rate of 5.8%.
China: Ad revenue expected to grow by 14% to $199.4 billion in 2024.
Together, these markets will add $44.5 billion in 2024, significantly outpacing other markets.

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Globalization and Digital Investment

The global advertising ecosystem is becoming more interconnected, with significant influence from China-based companies like Temu and TikTok.
Digital investment remains crucial, making up the majority of advertising spend. In 2023, Google, Meta, ByteDance, Amazon, and Alibaba accounted for 77.7% of total global ad spend.

Emerging Markets

Brazil: Ad spend growing at 11.3%.
India: Ad spend growing at 9.5%.

Political Advertising

Political advertising is expected to significantly impact the ad economy, with notable contributions from the U.S., Uruguay, and Sri Lanka.
By 2028, Connected TV (CTV) channels are projected to attract $2 billion in political ad spend.

Retail Media and Out-of-Home (OOH)

Retail Media: Expected to grow by 17.5% in 2024 and 13.5% in 2025.
OOH Advertising: Projected to grow by 11.5% in 2024, with China accounting for 54.6% of all digital OOH investments.

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Conclusion

The advertising industry is poised for significant growth, driven by globalization, digital investment, and emerging markets. However, it will also face potential impacts from government regulations and political changes. Despite these challenges, the interconnected global economy and innovation within the industry are expected to ensure a resilient and bright future.