The global advertising industry will exceed доходів 1 trillion in revenue for the first time in 2023, with most of the revenue coming from tech giants like Google and Meta.
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This year, the global advertising market will exceed доходів 1 trillion in revenue for the first time, with tech giants such as Google, Meta, Bytedance, Amazon and Alibaba receiving more than half of the total.
According to forecasts of the media agency GroupM (part of WPP), global advertising revenue in 2024 will grow by 9.5%, exceeding average annual expectations, despite the difficult economic situation in key markets such as the United States and the United Kingdom.
In 2025, the market is projected to grow further by 7.7%, which is mainly provided by leading digital advertising Sellers in the United States, rather than traditional advertising agencies.
GroupM excluded revenue from political advertising in the United States from the report, calling its impact "distorted" for long-term comparisons. However, in 2024, political advertising revenue in the United States is expected to reach 1 15.1 billion, which is a third more than during the 2020 presidential election.
The report notes that although in the coming years the low interest rates that contributed to the rapid growth of the market after the financial crisis and the pandemic will remain a thing of the past, the use of artificial intelligence and automation will compensate for this factor and will contribute to further innovation in the industry.
Digital Advertising's share of global revenue is expected to reach 73% by the end of next year, up 12.4% in 2024 and 10% in 2025. If you take into account revenue from streaming platforms, digital newspapers and magazines, this figure can reach 82%.
Traditional advertising channels such as television, print media, and radio are gradually losing ground due to the dominance of digital platforms. Global print advertising revenue is projected to decline by 4.5% in 2024 and another 3% in 2025.
Audio advertising revenue will remain stable, while TV (including streaming and streaming) will grow by just 2.4% between 2024 and 2029.The United States remains the largest advertising market with projected revenues of about.379 billion in 2025, despite higher borrowing costs and caution from individual retailers, including electronics and home goods stores.
The report warns that the possible introduction of tariffs and the strengthening of the dollar after the election of Donald Trump may complicate the activities of advertisers in the consumer goods and luxury goods segments, which are already facing a reduction in demand.
In China, advertising revenue is projected to grow by 13.5% in 2024, to.204.5 billion. In the UK, Europe's largest advertising market, the market volume in 2024 is estimated at 5 53.2 billion, with a projected growth of 8.3%.
Chinese initiatives aimed at building consumer confidence and stimulating spending can have a positive impact on the effectiveness of advertising campaigns if successfully implemented.
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