By Felicia Nwosu

Global advertising is closing on a positive note for 2023 as GroupM foresees that global advertising revenue is anticipated to reach $889.0 billion by the end of the year.

Although this data update, according to Kate Scott-Dawkins, the GroupM President-Business Intelligence, does not include the impact of U.S. political advertising.

The released data showed that retail media and digital out-of-home are the top leaders positioned with impressive performance to lead the growth. While nominal growth is expected to slightly decelerate in 2024, the five-year outlook remains robust.

Amidst the forecast, the business intelligence expert enumerated some of the major global shift influencing the new outlook in the advertising landscape.

These include Direct-to-Consumer Dynamics, Sports & Events Focus, Artificial Intelligence Integration, while leading regions remain the United States and China which have thrived to sustain the momentum in their ranks as the two largest ad revenue markets, while the United Kingdom surpasses Japan to claim the third spot.

In other words, countries such as Germany, France, Canada, Brazil, and India are also slugging to hold onto their positions in rankings, with Australia holding the tenth position, although there is a likelihood that these positions will persist in 2024, unless U.S. political ad revenue is considered a separate market.

The projection also took into account the update of the various channels and their contributions so far, where digital is projected to conclude the year with a 9.2% growth before moderating to 7.3% in 2024.

On the part of Retail Media, the  smallest segment within digital, retail media, is estimated to generate $119.4 billion in revenue in 2023, with an 8.3% growth forecast for 2024.

Search: The second-largest segment in digital ad revenue, search, is expected to reach nearly $200 billion in revenue in 2023, growing by 7.8%.

Television: Total TV ad revenue is anticipated to remain stable, with growth primarily driven by Connected TV (CTV).

Out-of-Home (OOH): OOH is forecasted to grow by 10.3% in 2023, but is not expected to regain its pre-pandemic share of total ad revenue by 2028.

Audio: Audio ad revenue, including streaming audio, is expected to total $26.4 billion in 2023, with a slight growth of 0.4% forecasted for 2024.

Print: Print, including traditional and digital forms, is projected to decline by 4.6% in 2023 and 3.1% in 2024.

Cinema: Cinema ad revenue is forecasted to grow by 14.7% in 2023, reaching a total of $2.2 billion in 2024.

A look at some of the indices of the main industry categories contributing to global advertising showed a strong indication that, consumer Packaged Goods Advertising (CPG) are seen as  the largest contributors, making up 19.7% of total ad revenue in 2023.

Auto Advertisers: This section is also  transitioning to a direct-sales model, contributing to increased ad spend.

Luxury Retailers: These special dealers have been recorded to have been leveraging digital channels, which represent 2.2% of global ad revenue in 2023.

Technology: Tech companies constitute 5.5% of total ad revenue, with a focus on updating products and services in the AI economy.

Media and Entertainment: This shift came in response to the global  digital Penetration across continents. Its contribution represents 7.4% of total global ad revenue.

Digital Endemics: Despite potential deceleration, digital endemics remain high-intensity advertisers, relying on advertising for user acquisition and revenue growth.