Advertisers have resumed spending after a year of weak global advertising due to geopolitical events and fears over a potential macroeconomic recession, according to S&P Global Ratings.
Standard & Poor’s forecasts US digital advertising revenue will grow at 10.2% in 2024, reflecting stabilising global macroeconomic growth but at a modestly slower rate than in 2023.
Digital was the first ad sector to slow in 2022 and the first to recover starting around the middle of 2023.
Digital video and retail media networks will be the fastest expanding subsegments because both benefit from the continued shift to online shopping, digital video consumption, and connected TV and better demographic targeting provided by video on demand viewing.
S&P Global Ratings expects growth to moderate to 8.5% in 2025 mainly due to slowing social media advertising.
In 2024, search will grow 9.5%, social 11% and digital video 15%.
“We forecast US advertising spending will grow faster than GDP in 2024,” S&P Global Ratings says in a report to clients.
“We assume modestly improved advertising in legacy media, such as linear TV and radio, but not until the second half of 2024.
“We see increasing divergence in advertising trends between digital media platforms (such as connected TV, social media, e-commerce, and retail media networks) and legacy media platforms (such as linear TV, radio, and print).
“While we expect digital media will grow in 2024, we anticipate legacy advertising will continue to decline due to worsening structural trends.
“We do not expect linear TV or print will recover to pre-pandemic advertising levels.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.