- 2024 Projection for Global Ad Spending
- Insights on Marketing and Media Accountability
- Top 12 Largest Industries in Advertising Market
- Growth in Digital Ad Spend Across Key Sectors
- Advertising Spend in North America
- Advertising Spend in Africa
- Advertising Spend in Asia-Pacific (APAC)
- Middle East and North Africa (MENA) Advertising Spending Growth
- Europe Advertising Spending Growth
Ever wondered how advertising trends mirror global economic shifts? In 2024, the advertising world is set to undergo a significant transformation, driven by innovative targeting methods and enhanced digital accountability.
This article unpacks the anticipated shifts in ad budgets across various industries and regions, highlighting the strategic importance of advertising as a business investment.
2024 Projection for Global Ad Spending
In 2024, global advertising expenditure is projected to grow by 5%, reaching $754.4 billion, according to the latest mid-year forecasts from dentsu and IMF data. This increase will outstrip the expected 3.2% rise in global GDP.
Ad spending often reflects broader economic trends, typically exceeding GDP growth in prosperous times and lagging during downturns. The anticipated increase in ad budgets is also attributed to enhanced methods for targeting audiences and measuring advertising effectiveness.
Insights on Marketing and Media Accountability
The confidence among marketers regarding the effectiveness and returns from media and advertising is on the rise. This change in perspective is driven by the increasing digitalization of media, which offers better accountability for outcomes. Consequently, advertising is now perceived as a strategic business investment rather than just an expense.
Top 12 Largest Industries in Advertising Market
In 2024, the advertising landscape is set to see varied growth rates across different sectors, with digital ad spend playing a pivotal role. Here is a breakdown of the year-on-year ad spend growth percentages for the top 12 largest industries in the advertising markets:
- Automotive – 3.6%
- Beverages – 5%
- Cosmetics & Personal Care – 6.2%
- Finance – 6.4%
- Food – 5.1%
- Government, Social, Political & Organizations – 4.2%
- Media & Entertainment – 6.5%
- Pharmaceutical – 4.6%
- Retail – 4.6%
- Technology – 6.2%
- Telecommunication – 2.3%
- Travel & Transport – 8.1%
- Other – 4.5%
Growth in Digital Ad Spend Across Key Sectors
One significant reason for the growing faith in advertising’s accountability is the inexorable rise of spend through digital channels. Digital ad spend is forecast to grow by 7.4% in 2024, accounting for 59.6% of total global advertising budgets. This rapid increase is evident across nearly all industries but is most prominent in the finance and media sectors, which are expected to see 14.5% and 13.0% year-on-year digital ad spend growth respectively.
Finance and Media Sectors’ Resurgence
Both the finance and media sectors have previously faced challenging economic circumstances, leading them to reduce advertising spend and focus on efficiency.
After two years of budget constraints, marketers and advertisers in these sectors are now expanding their ad budgets and ramping up digital activities. This resurgence is supported by macroeconomic improvements and a more stable economic outlook, which encourages increased advertising investments.
Travel Advertising’s Post-Pandemic Bounce Back
Travel advertising continues to rebound post-pandemic with an anticipated 11.2% increase in digital spend. This growth reflects the creation of enhanced experiences, services, and booking processes for travelers, driven by the ongoing recovery in the travel and tourism industry, which is expected to grow by 8.1% in 2024. The travel sector’s renewed focus on digital channels highlights the industry’s commitment to leveraging technology to improve customer experiences and streamline operations.
Broader Trends in Digital Advertising
The global advertising landscape is shifting significantly towards digital channels. The 2024 forecast shows substantial ad spend increases in retail media (+32.0% year-over-year) and programmatic advertising (+10.9% year-over-year). These trends are driven by technological advancements and changing consumer behaviors, making digital advertising a crucial component of modern marketing strategies.
Advertising Spend in North America
In 2024, advertising spending in North America is projected to experience a significant surge, reflecting the region’s robust economic recovery and increasing investments in digital advertising.
Key Insights:
- 2024 Ad Spend: $357.3 billion
- 2023 Ad Spend: $335.0 billion
- Annual Growth: 6.6%
- 2029 Forecast: $452.3 billion
Key Driver: The United States is a significant contributor, with the US presidential election forecast to account for about a third ($11 billion) of the incremental ad spend in 2024.
Advertising Spend in Africa
In 2024, advertising spending in Africa is projected to reach approximately $11.48 billion, up from $11.07 billion the previous year, marking an annual growth of about 3.7%. This positive trajectory is expected to continue, with forecasts suggesting that ad spend in the region will surpass $13.3 billion by 2029. The growth is driven by increasing investments in digital infrastructure and a rising focus on digital advertising channels across the continent.
Key Insights
- 2024 Ad Spend: $11.48 billion
- 2023 Ad Spend: $11.07 billion
- Annual Growth: 3.7%
- 2029 Forecast: $13.3 billion
Key Drivers:
- Digital Infrastructure Investment: Enhanced internet access and mobile connectivity.
- Expansion of Digital Advertising Channels: Increased focus on reaching online consumers.
- Growing Digital Economy: Adoption of new technologies and digital platforms.
Advertising Spend in Asia-Pacific (APAC)
In 2024, the Asia-Pacific (APAC) region is set to witness a significant surge in advertising spending, with an overall growth rate projected at 4.2%, up from 3.7% in 2023. This growth is primarily driven by key markets such as China and India.
The robust economic recovery and the rapid expansion of digital advertising channels are the main drivers of this growth. As businesses in the region continue to leverage digital platforms to reach wider audiences, the APAC advertising market is poised for substantial advancement.
Key Insights
- Overall Growth Rate: 4.2%
- 2024: 156.4 billion (projected)
- China: 4.8% growth
- India: 6.8% growth
Key Driver:
- Enhanced Mobile Utilization: The widespread adoption of smartphones has made social media more accessible than ever, leading to increased mobile ad spending.
- E-commerce Integration: The fusion of e-commerce features with social media platforms has revolutionized online shopping within APAC, influencing ad expenditure patterns.
Middle East and North Africa (MENA) Advertising Spending Growth
The Middle East and North Africa (MENA) region is experiencing a remarkable boom in digital advertising, particularly in the mobile video segment. This surge is driven by significant advancements in mobile connectivity and the widespread adoption of digital platforms.
Key Insights
- Overall growth rate: 12.4%
- 2023: $10.81 billion
- 2024: $12.27 billion (projected)
Key Driver:
- The primary driver of this growth is the rapid expansion of digital infrastructure, particularly mobile connectivity, which has facilitated greater access to digital platforms. The popularity of mobile video content is a significant contributor.
The numbers reflect a steady increase in advertising investments, indicating a growing recognition of the importance of advertising in driving economic and commercial activities in Africa.
Europe Advertising Spending Growth
The European advertising market has shown significant growth over the years, driven by technological advancements, increased digitalization, and the proliferation of mobile and online platforms.
Key Insights
- Overall Growth rate: 1.92%
- 2023: $66 billion
- 2024: $67.5 billion (projected)
Key Drivers
- Digital Transformation: The shift towards digital advertising, including programmatic advertising, social media, and video ads, has significantly contributed to the growth.
- Mobile and Online Platforms: Increased use of mobile devices and online platforms has driven advertisers to allocate more budget to digital ads.
- Economic Recovery: Post-pandemic economic recovery has led to an increase in ad spend across various sectors.
Reach Your Target Audiences with OnAudience
OnAudience helps to connect with target audiences across various markets by leveraging advanced datasets. Navigate by focusing on demographics, interests, purchase intents, and brand affinities. Ensure your message and ads are delivered to the right users. Whether it’s reaching people based on their age, location, and interests, or targeting those with specific purchase intents and event-based interest information.
If you are looking to optimize your campaigns to maximize engagement and ROI. Test high-quality data and elevate your advertising strategy with precise, targeted reach that drives meaningful connections and results.
