Global advertising spend is forecast to grow 7.4% this year to $US1.17 trillion, an upgrade of 1.2 percentage points from predictions made in June, according to analysis by WARC.
A rise of 8.1% to $1.27 trillion is forecast next year, while growth of 7.1% in 2027 would push the market’s value to $1.36 trillion, a doubling in size since the pandemic.
“Global ad spend is growing rapidly, with digital-first platforms capturing almost all the new money,” said James McDonald, director of data, intelligence & forecasting, WARC, and author of the report.
“Despite economic headwinds, including disruption to global trade and reduced purchasing power among consumers, brands are doubling down on Meta, Alphabet (Google) and Amazon, while emerging players like TikTok are growing fast but from smaller bases.
“The global market is set to nearly double in value since the pandemic, underscoring the resilience of advertising in a tougher economic climate.”
WARC’s latest global projections are based on data aggregated from 100 markets worldwide, and leverage a proprietary neural network which projects advertising investment patterns based on over two million data points.
Ad spend continues to consolidate among three media owners, Google Meta and Amazon.
Nine in ten dollars entering the ad market go to online-only platforms.
Social media – the largest single advertising medium globally – is drawing 40.6% of new ad dollars, while non-retail search (22.2%) and retail media (21.5%) each account for around a fifth of growth.
Google, Amazon and Meta draw more than half (55.8%) of all ad spend outside of China and their share of total ad spend (excluding China) will top 60% by 2030.
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