Global advertising revenue tops $1T, streaming and digital drive growth

The global advertising industry is poised for a historic year, with total revenue expected to exceed $1 trillion in 2024, according to GroupM’s latest annual forecast.

The report, which tracks advertising trends across channels and markets, projects a 9.5% increase in revenue this year, up from a 7.8% growth estimate made in June. By 2025, total revenue is expected to climb an additional 7.7% to $1.1 trillion.

The report underscores a concentration of market power, with five companies — Google, Meta, TikTok owner ByteDance, Amazon and Alibaba — predicted to account for over half of global advertising revenue.

Pure digital advertising continues to lead growth, with spending projected to increase 12.4% in 2024 and make up nearly 73% of total ad revenue by 2025. Within digital, retail media is emerging as a major player, with revenue expected to surpass global TV advertising for the first time in 2025, reaching $177.1 billion.

Linear TV faces declines as streaming gains ground

Television advertising paints a mixed picture.

While global TV ad revenue (encompassing both linear and streaming) is set to grow by a modest 2.4% on a compound annual basis from 2024 to 2029, linear TV revenue will decline by 3.4% in 2025.

In contrast, streaming TV advertising is expected to surge, with GroupM forecasting a 19.3% growth rate. Streaming ad revenue will overtake linear TV ad revenue by 2029, GroupM finds.

The shift is driven by changes in consumer viewing habits and the decline of the traditional cable bundle. While streaming services like Netflix, Disney+ and Max have introduced ad-supported tiers, lower ad loads and a significant portion of subscribers opting for ad-free plans have limited immediate ad revenue potential.

Winners and losers in other media channels

Out-of-Home Advertising: Digital formats are bolstering the category, with digital out-of-home (DOOH) expected to account for 42% of global OOH revenue by 2025.

Audio Advertising: Global revenue will remain flat at $27 billion in 2025, with slight declines forecasted through 2029.

Print Advertising: Revenue from newspapers and magazines, including digital editions, will continue to shrink, falling 4.5% in 2024 and another 3% in 2025.

Cinema Advertising: While benefiting from stronger theatrical attendance, global cinema ad revenue will remain below pre-pandemic levels, projected to reach $2.3 billion in 2029 compared to $3 billion in 2019.

While surpassing the $1 trillion revenue mark is a landmark for the advertising industry, the uneven distribution of growth reveals a landscape of “haves and have-nots.” Digital channels and streaming platforms are thriving, while traditional media, particularly linear TV and print, face mounting challenges.

GroupM’s findings highlight a broader transformation, with advertisers navigating a fragmented media landscape and evolving consumer behaviors. These trends reflect both the opportunities presented by emerging platforms and the hurdles legacy media channels face in adapting to a digital-first world.

Sources: www.newscaststudio.com