The global advertising industry is projected to hit a historic milestone, surpassing $1 trillion in revenue for the first time in 2024, the Financial Times reports.
Dominating this rapidly growing market are five major technology companies—Google, Meta, ByteDance, Amazon, and Alibaba—which are expected to collectively earn more than half of the total revenue.
This surge in advertising revenue reflects a 9.5% increase from the previous year, according to GroupM, the media agency owned by WPP. The agency’s forecast exceeds its mid-year estimates despite challenging economic conditions in key markets like the US and the UK Further growth of 7.7% is anticipated for 2025, with much of the gains expected to benefit the largest sellers of digital advertising, especially in the US tech sector.
Digital advertising remains the driving force behind the industry’s expansion, forecast to account for 73% of total revenue by the end of 2024. This share rises to 82% when factoring in streaming platforms, digital newspapers, and online magazines. Growth in digital advertising revenue is expected to reach 12.4% in 2024 and 10% in 2025.
The report underscores how advancements in artificial intelligence (AI) and automation will continue to fuel growth in digital advertising. While past industry booms were supported by ultra-low interest rates, GroupM noted that AI-driven innovations are expected to more than offset the impact of higher borrowing costs.
The rise of digital platforms has come at the expense of traditional advertising channels like television, print, and radio. Print advertising revenue is forecast to decline by 4.5% in 2024 and another 3% in 2025. Revenue from audio advertising is expected to remain flat next year, while TV advertising, which includes both linear and streaming services, is projected to grow at a modest compound annual rate of 2.4% from 2024 to 2029.
This shift toward digital channels reflects broader changes in consumer media consumption, with audiences gravitating toward on-demand streaming and online content.
The United States remains the largest advertising market in the world, with revenues forecast to reach approximately $379 billion by 2025. While higher borrowing costs and cautious spending by some major retailers have introduced economic headwinds, the US market is still expected to play a pivotal role in global growth. However, potential changes in US trade policy under a second Trump administration, including higher tariffs and a stronger dollar, could affect advertising for consumer goods and luxury brands, especially those with international exposure.
China’s advertising market is set to experience substantial growth, with revenues projected to rise by 13.5% in 2024 to $204.5 billion. This growth is driven by initiatives aimed at promoting consumer confidence and stimulating spending, which could encourage multinational advertisers to ramp up investment in the region.
Meanwhile, the UK remains Europe’s largest advertising market, with revenues estimated to hit $53.2 billion in 2024, reflecting an 8.3% increase for the year. The report highlights the UK’s resilience despite broader concerns about economic slowdowns in other parts of Europe.
One notable aspect of GroupM’s analysis is the exclusion of US political advertising from its global revenue estimates. In 2024, political ad spending is expected to total $15.1 billion in the US, a significant increase of nearly one-third compared to the 2020 presidential election cycle. GroupM argues that including political advertising would distort year-on-year comparisons, given the highly cyclical nature of political campaigns.
Looking ahead, the global advertising industry appears set for continued growth, with AI and automation playing a key role in driving efficiency and targeting. While digital advertising will continue to dominate, economic and geopolitical factors—such as US tariffs, shifting consumer demand, and economic slowdowns in key global markets—will shape the pace and distribution of growth.
With major tech firms like Google, Meta, ByteDance, Amazon, and Alibaba commanding a larger share of global advertising dollars, their role in shaping the future of the industry will only increase. The question for traditional media players and smaller advertising agencies is how they will adapt to this evolving landscape.
