The global advertising industry is set for significant growth, with revenue projected to reach $989.8 billion in 2024 and surpass $1 trillion in 2025, a year earlier than previously forecast.
This is according to the 2024 Global Midyear Advertising Forecast.
The report highlights critical drivers of this growth, including the rise of digital advertising, recovery in key markets like China, and technological advancements such as artificial intelligence (AI).
The report reveals that the global advertising industry is forecast to expand by another 6.8% in 2025, pushing revenue to $1.1 trillion.
“The global ad revenue forecast for 2024 has been revised upward from 5.3% growth (predicted in December) to 7.8%, equating to $989.8 billion. By 2025, the industry is expected to grow by another 6.8% to reach $1.1 trillion,” the report stated.
Market leaders in advertising
The United States and China are at the forefront of this growth, contributing 57.1% of global ad revenue in 2024.
U.S. ad revenue is expected to rise to $365.9 billion, a 5.8% increase from 2023, while China’s forecast has jumped to $199.4 billion from $148.2 billion predicted earlier.
“Together, the U.S. and China make up 57.1% of global ad revenue, adding $44.5 billion to their totals in 2024 (excluding U.S. political spending) nearly 1.5 times the cumulative $27.5 billion in incremental revenue for all other markets combined,” the forecast highlighted.
- The combined incremental revenue from these two markets in 2024—$44.5 billion—will surpass the $27.5 billion cumulative growth from all other markets combined.
- When excluding the contributions of the U.S. and China, the global growth forecast for 2024 rose from 6.5% (predicted in December 2023) to 6.9%. This contrasts with the overall headline increase to 7.8%, driven by the inclusion of these two major markets.
“If we exclude both the U.S. and China from the global totals, our forecast for 2024 has risen from 6.5% (in the December 2023 report) to 6.9% now versus the headline increase from 5.3% global growth (from December 2023) to 7.8% including the U.S. and China,” the report highlighted.
What you should know
- In recent years, Nigerian companies across various sectors have significantly increased their marketing and advertising budgets, reflecting efforts to maintain brand visibility, grow market share, and engage consumers..
- According to Nairametrics, Nigerian companies’ advertising expenditure saw robust growth from 2021 to 2022, with a year-on-year increase of 35.9%.
- However, in 2023, there was a slight decline in overall spending compared to the previous year, suggesting a more cautious approach due to economic uncertainty.