Contact Us

Ad market finally begins to stabilize

Global Ad Revenue
Thought Leader: Sara Fischer
January 9, 2024
Source: AXIOS
Written by: Sara Fischer

After years of pandemic-driven volatility, the global ad market is finally expected to normalize over the next five years, according to new forecasts.

Why it matters: Uncertainty in the ad market led to a record number of job cuts across the media and entertainment sectors over the past year.

State of play: The global ad market is expected to grow 5.3% this year, down from 5.8% growth in 2023, according to a year-end forecast from GroupM, one of the largest global advertising agencies.

Between the lines: For both global and North American forecasts, the ad market will still grow in real-terms, but slower growth rates mean publishers that rely on ad revenue will need to temper their expectations.

How we got here: For years, the advertising industry grew at roughly the same rate as gross domestic product (GDP).

State of play: Heading into 2024, analysts predict mid-single-digit ad growth for the foreseeable future, thanks in large part to the maturity of the digital ad market.

Zoom in: All 2024 forecasts suggest spending on traditional media, such as print, radio and television, will decline year-over-year in annual growth, but their digital alternatives aren’t expected to make up for those losses.

Be smart: Some of the factors causing consistent slower growth for the next few years are still linked back to the pandemic.

The big picture: The current trends are expected to continue to favor large, global tech platforms, thanks to their global reach and investments in AI-driven marketing tools.

What to watch: In addition to politics and sports, the automotive, travel, pharmaceutical and consumer package goods (CPG) industries are expected to post strong advertising growth next year, per Magna.

Subscribe to the WWSG newsletter.

Check Availability

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Speaker List
Share My List