The global advertising market surpassed $1 trillion in 2024 for the first time, with digital giants like Google and Meta leading the charge. These platforms are expected to capture over half of the total ad spend, highlighting the increasing dominance of digital channels in the advertising world.
For businesses, this milestone emphasizes the need for agility in a digital-first landscape. To stay competitive, it’s crucial to embrace AI technologies for smarter ad targeting, optimized ad spend, and to align with shifting consumer behaviours—all while navigating economic uncertainties.
Key Insights
- Ad Revenue Growth: Global ad revenues are projected to grow by 9.5% in 2024, with another 7.7% increase in 2025.
- Digital’s Dominance: By 2025, digital ads (including streaming and online news) are expected to account for 82% of total advertising revenue.
- US Market: The US will remain the largest ad market, reaching $379 billion in revenue by 2025.
- China’s Surge: China’s ad market is forecasted to grow by 13.5% in 2024, reaching $204.5 billion.
- Print Decline: Print ad revenue is expected to drop by 4.5% in 2024, with a further 3% decline in 2025.
Adapting to the Shift
AI and automation are key to staying competitive in a changing market. These technologies enhance advertising personalization, streamline campaigns, and optimize ad spend, even amid economic challenges.
However, advertisers must be mindful of risks. Economic uncertainty in markets like the US and UK may slow growth, and geopolitical factors like tariffs and currency changes could impact ad spend in sectors like consumer goods and luxury.
Looking Forward with Foundery
The future of advertising is rooted in digital platforms, with AI continuing to drive innovation. As markets like China focus on boosting consumer confidence, new growth opportunities will arise. Adapting to these changes and leveraging data will be key for advertisers to thrive in this new era.
Ready to adapt and stay competitive?
