How global ad spend surpassed projected revenue in 2024
By Abimbola Mohammed
The World Advertising Research Center (WARC) released its 2024 report on projected advertising spend and now the revenue grew more than the expected projection. WARC noted that the increase in forecast for global expenditure in 2024 surpassed $1 trillion for the first time.
Ad spend is projected to grow by 10.7% this year, reaching $1.08 trillion. Over the past decade, ad spend has more than doubled, growing at 2.8 times the rate of global economic output since 2014, with an ever-expanding array of media channels now available to marketers.
According to WARC the growing variety of media options creates new opportunities for marketers to enhance effectiveness and drive growth.
Global ad investment has more than doubled over the last decade and has grown 2.8x faster than global economic output since 2014. Growth is also anticipated this year (+7.6%) and in 2026 (+7.0%).
The report finds that brands are increasingly pivoting away from traditional platforms like Google search towards emerging social and retail channels, where younger consumers are actively seeking brand discovery
James McDonald, Director of Data, Intelligence and Forecasting, WARC, noted in the report that: “Our latest forecast anticipates $104bn in incremental advertising spend worldwide this year, the largest rise in history if the post-pandemic recovery year of 2021 were discounted.”
“Whether this boom will sustain remains unclear, however, as 2025 presents a sliding doors moment due to heightened regulatory pressures on Google and TikTok – together a quarter of the ad market outside of China. This, alongside an increasingly challenging geopolitical climate, may spell uncertain times ahead for the businesses that rely on advertising trade, he explained.
The growth
Projected 10.7% rise in global spend this year equivalent to an additional $104bn in advertiser investment, the second-highest absolute rise on record.
One in five dollars (22.1%) spent on ads outside of China is paid to Google; DOJ ruling now threatens $32.9bn of potential growth over the next two years.
Advertisers are due to spend $299bn this holiday season, with online platforms such as Amazon ($16.9bn in holiday-season ad revenue) set to be the biggest beneficiaries.
The why
The rising influence of artificial intelligence adds another layer of complexity, enabling more personalised marketing strategies through data-driven insights. Retail media is becoming a crucial component of this evolution, expanding rapidly as advertisers aim to connect with consumers at various stages of their purchasing journey. To thrive, brands are encouraged to adapt their strategies to navigate the challenges posed by algorithm-driven platforms and leverage the omnipresent nature of commerce which is increasingly ‘everywhere’.
RECOMMENDED ARTICLES
Comment
No comments found.