Global ad revenue to surpass $1 Trillion in 2024
TL;DR
- Global advertising revenue is projected to grow 9.5% in 2024, hitting $1 trillion.
- Digital advertising will dominate, accounting for 73% of revenue in 2024 and 81.7% by 2025.
- The US and China contributed 57.1% of global ad revenue growth.
- Retail media is set to surpass TV advertising revenue by 2025.
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For the first time, the global advertising industry is projected to exceed $1 trillion in total revenue in 2024, according to GroupM’s "This Year Next Year 2024 Global Forecast." The report also forecasts continued growth, predicting a 7.7% rise to $1.1 trillion in 2025.
Digital advertising dominates the growth
Digital channels remain the leading force behind this growth. GroupM estimates digital advertising will make up 73% of total ad revenue in 2024, growing 12.4% year-over-year. This share is expected to increase further, with digital ads accounting for 82% of revenue by 2025. This includes platforms like streaming TV, online publications, and digital out-of-home advertising.
Traditional advertising channels, however, are struggling due to digital media dominance. Print advertising revenue is predicted to decline by 4.5% in 2024 and 3% in 2025. Linear TV revenue is also forecasted to drop 3.4% in 2025, even as streaming TV ad revenue grows by 19.3% during the same period.
However, GroupM’s forecast suggests that while digital channels are growing, traditional media, like linear TV, will maintain relevance. Linear TV is expected to represent 72.6% of total TV ad revenue in 2025, though its dominance may decrease as streaming platforms continue to grow.
Top companies capture majority share
More than half of the trillion-dollar ad revenue will go to five industry leaders: Google, Meta, ByteDance, Amazon, and Alibaba. These companies continue to dominate the digital advertising market, per GroupM’s forecast.
Ad market leaders
According to the group, the United States and China are the market leaders in ad spend, contributing 57.1% of revenue in 2024. Scott Dawkins, Global President, Business Intelligence at GroupM says, “The US and China really continue to be the drivers of growth for the global economy and for advertising.”
Per the forecast, The U.S. ad market is expected to increase by 9% next year, reaching $379 billion by 2025. China’s ad market will expand by 13.5% in 2024, generating $204.5 billion in revenue.
Retail media surpasses TV revenue
Retail media is emerging as the fastest-growing segment in digital advertising. After an 18.2% increase in 2023, retail media revenue is predicted to grow another 13.8% to $176.9 billion by 2025, surpassing traditional TV advertising for the first time.
The Asia-Pacific region leads in retail media, projected to earn $97.6 billion in 2025, with $74.4 billion from China alone. North America and emerging markets like India and Brazil are also seeing rapid growth in this segment, with retail media in India surpassing search advertising by 2025.