A global look at key trends in the advertising business and breaking the $1 trillion mark in 2024

Global advertising revenue will increase 9.5% in 2024, up from June's estimate of 7.8%. The advertising industry will surpass $1 trillion in total revenue for the first time this year and grow 7.7% to $1.1 trillion in 2025.

Most of this year's growth will accrue to the largest digital advertising vendors, with some gains also attributable to smaller players in emerging sectors. The five largest digital ad companies (Google, Meta, ByteDance/Tik Tok, Amazon and Alibaba) are expected to earn more than half of all ad revenue in 2024, with the majority coming directly from small- and medium-sized advertisers through their ad platforms.

• We project global ad revenue to grow 9.5% during 2024, up from our June estimate of 7.8%, driven by double-digit growth recorded by the largest ad sellers during the first nine months of the year.

• The ad industry will surpass $1 trillion in total revenue for the first time this year and grow another 7.7% to $1.1 trillion in 2025.

• Purely digital advertising will account for 72.9% of total revenue in 2025, or 81.7% if we include all digital extensions of traditional advertising, such as streaming TV, digital outdoor media (DOOH), and digital newspaper and magazine revenue.

• These figures do not include US political advertising due to its significant impact on US and global data. In 2024, U.S. political advertising added $15.1 billion to the total - up more than 30% from the 2020 presidential election year.

Key trends in individual media types

• Global TV (including linear and streaming, excluding political advertising) will only grow by 1.9% in 2025. Linear TV will account for 72.5% of this, with revenues falling by 2.8% in 2025 compared to 2024. In contrast, streaming TV is expected to grow by 19.3% in 2025, but will still only account for 27% of total TV revenues in 2025.

• Out of home (OOH) advertising will grow by 7.1% in 2025. It is estimated to account for 5.0% of total advertising revenue in 2025. Digital outdoor advertising (DOOH) will account for 42% of total OOH revenue, more than the penetration of TV (27%) or audio (31%).

• Global audio revenues will remain roughly constant in 2025, with growth of just 0.3% to $27.0 billion in 2025, followed by a slight decline over the next four years. Streamed audio experienced double-digit growth in 2024.

• Worldwide, total revenues from "print" media, including all traditional and digital formats in newspapers and magazines, will decline by 4.4% in 2024 and another 3.0% in 2025.

• Cinema advertising is estimated to grow 5.2% in 2024, although the $2.3 billion total will still be below the 2019 global figure of $3.0 billion.

A detailed look at digital advertising

• Net Digital Advertising Growth:Net digital advertising (excluding digital extensions of traditional media) is projected to grow 12.4% in 2024 and 10.0% in 2025, reaching $813.3 billion.

• Evolution of search: despite claims of its demise, search advertising is projected to grow, driven by competition and AI-based innovations, including new search offerings. The integration of AI into search raises questions around monetization and highlights the growing importance of visual search optimization for brands.

• Retail media boom: Global retail media revenues are forecast to reach $176.9 billion in 2025, surpassing total TV advertising revenues for the first time. This channel is evolving rapidly and distinct strategic groups (e-commerce giants, mass players, niche players) are emerging. Regional trends vary, with APAC leading in retail media revenues, followed by North America and EMEA.

• The potential of games: although in-game advertising is still a relatively small part of digital advertising, it is a growing segment. GroupM estimates in-game ad revenue at less than $7 billion in 2023, but growing faster than the overall market.

Trends in digital advertising:

The pervasive influence of AI: AI alone is not driving the growth of advertising, but it is a multiplier of technology and creativity. It is integrated into various products and processes, impacting efficiency and productivity. Brands need to use AI strategically while addressing consumer concerns about its use. AI-focused advertisers who offer

• AI-based tools and services will rely heavily on marketing and advertising for their growth.

• The rise of self-service advertising: the application of AI and automation is enabling effective self-service advertising models on platforms like Google and Meta, empowering smaller advertisers and increasing competition.

• Importance of branding: In a digital landscape dominated by performance marketing and AI automation, strong branding becomes even more important for differentiation and competitive advantage.

• Coping with complexity: The increasing complexity of platform offerings and data protection compliance requirements require increased discernment on the part of advertisers.

• Building trust: The consolidation of power among a few tech giants requires brands to build trust and authenticity to differentiate themselves in the ever-increasing advertising noise.

The world of advertising is transforming into the world of digital advertising and is a very dynamic, complex and fragmented environment. It requires advertisers to adapt to evolving trends, manage the consolidation of platforms and responsibly harness the power of AI. A balanced approach that combines technological efficiency with strong brand building is the key to success in this rapidly changing environment.