Joy Agwunobi
The global advertising industry is experiencing an unprecedented rise, with revenues expected to reach $989.8 billion in 2024 and surpass the $1 trillion mark by 2025.
Key drivers of this expansion include the booming investments in digital advertising, an economic resurgence in major markets like China and the United States,as well as the growing adoption of cutting-edge technologies such as automation and artificial intelligence (AI).
According to the 2024 Global Midyear Advertising Forecast, this growth projection has been revised upward to 7.8 per cent for 2024, an increase from the 5.3 per cent predicted in December. The report highlights the evolving dynamics of the advertising landscape, where innovation and digital transformation are reshaping how brands connect with audiences.
“The global ad revenue forecast for 2024 has been revised upward from 5.3 per cent growth to 7.8 per cent, amounting to $989.8 billion. By 2025, the industry is expected to grow by another 6.8 per cent, reaching $1.1 trillion,” the report reveals.
As consumers increasingly engage online, advertisers are investing heavily in digital platforms to meet audiences where they are. Additionally, economic recovery in regions like China is creating fertile ground for advertising spend, while AI and automation are revolutionising campaign strategies, enabling more personalised and effective marketing
Leading markets like the United States and China remain pivotal in driving this expansion. These two nations are expected to account for a combined 57.1 per cent of global ad revenue in 2024. The U.S. advertising market alone is projected to grow to $365.9 billion, marking a 5.8 per cent increase from 2023, while China’s market is forecasted to reach $199.4 billion, a leap from earlier estimates of $148.2 billion.
“Together, the U.S. and China make up 57.1 per cent of global ad revenue, adding $44.5 billion to their totals in 2024 (excluding U.S. political spending), nearly 1.5 times the cumulative $27.5 billion in incremental revenue for all other markets combined,” the report emphasised.
When the contributions of the U.S. and China are excluded, the report noted that the global growth forecast for 2024 adjusts to 6.9 per cent , compared to the overall headline increase of 7.8 per cent . “If we exclude both the U.S. and China from the global totals, our forecast for 2024 has risen from 6.5 per cent (in the December 2023 report) to 6.9 per cent now versus the headline increase from 5.3 per cent global growth (from December 2023) to 7.8 per cent including the U.S. and China,” the forecast highlighted.
According to the report, the combined incremental revenue from these two markets, $44.5 billion, significantly outpaces the $27.5 billion cumulative growth from all other markets, underscoring their outsized influence on global trends.
In Nigeria, the advertising landscape has been shaped by similar global dynamics. The country saw a 35.9 per cent year-on-year increase in advertising expenditure between 2021 and 2022 as companies prioritised brand visibility and consumer engagement. However, in 2023, the industry experienced a slight decline as businesses adopted cautious spending strategies amid economic challenges.
These trends highlight the transformative power of digital platforms and emerging technologies in reshaping the advertising industry.
