The global advertising landscape is undergoing dynamic shifts. In 2023, global advertising spending is expected to surge by 5.8 percent, reaching $889 billion, before slightly slowing to a 5.3 percent lift in 2024, reaching $951.8 billion, excluding expenditures on political advertising.

Political Advertising on the Rise: A significant feature is the expected increase in political advertising expenditure, forecasted to reach $15.9 billion in 2024, potentially establishing a new milestone. The U.S. market, in particular, is expected to witness a 5.7 percent gain in ad revenue in 2023, with a subsequent dip to a 4.1 percent increase in 2024, excluding political ad spending.

Regional Variations: China, a major player in the global market, is expected to experience 6.1 percent ad revenue growth in 2023, followed by a forecasted 4.7 percent gain in 2024. Consumer sentiment is being influenced by factors such as economic uncertainties, dynamics in the property market, and issues related to youth unemployment.

Media Owners’ Projections: Rival Magna’s predictions, anticipate a 5.5 percent increase in global media owners’ advertising revenues in 2023, with a further growth of 7.2 percent in 2024.

Digital Dominance: The survey emphasizes the growing dominance of digital platforms, with Google, Meta, Bytedance, Alibaba, and Amazon emerging as the top five global advertising sellers. Currently, almost 70 percent of global advertising revenue is channeled to digital platforms, a figure expected to rise to 75.5 percent by 2028.

The Rise of Digital Giants: Digital platforms such as Google and Meta are not only challenging but surpassing traditional media players, particularly linear TV channels, in the global ad-spending arena. Nearly 70 percent of global ad revenue goes to digital platforms, a trend expected to increase to 75.5 percent by 2028.

Impact on Traditional Media: Conventional media proprietors and significant marketers are witnessing modest compound revenue growth, a stark contrast to the substantial 25.4 percent compound revenue growth achieved by digital giants from 2016 to 2024.

The Decline of Linear TV: Industry experts forecast a significant decline in linear TV, with total TV ad revenue expected to grow by just 1.1 percent on a compound annual basis over the next five years. Connected TV or Smart TVs are anticipated to contribute significantly to this growth, expected to surge by 9.5 percent from $29.2 billion in 2023 to $45.8 billion in 2028.

The Digital Landscape Beyond 2023: Specialists see pure-play digital media outpacing traditional media owners, with digital media owners projected to witness a remarkable 10.5 percent growth in ad revenue to $587 billion in 2023, constituting 69 percent of total ad sales.

In conclusion, the global advertising industry is undergoing a transformative journey marked by the ascendancy of digital platforms and the decline of traditional media channels. The forecasts underscore the importance of flexibility in the constantly changing advertising environment, as digital giants pave the path toward a future where online platforms take center stage in the realm of ad expenditures.