GroupM: 2024 Adspend to Rise 7.8 Percent

The global advertising market will reach $989.8 billion this year, a 7.8 percent increase, with the industry set to top $1 trillion in 2025.

According to the This Year, Next Year 2024 Global Midyear Forecast from GroupM, ad revenues in 2025 are projected to hit $1.1 trillion, a 6.8 percent increase. GroupM had previously expected ad revenues to hit $1 trillion in 2026.

GroupM has also updated its forecasts for the U.S., which is expected to reach $365.9 billion in ad revenue this year, a 5.8 percent gain.

Key factors shaping the forecasts include the economies in the U.S. and China, which account for just over 57 percent of global ad revenues, reflecting $44.5 billion in incremental revenue, nearly 1.5 times what’s being added in the rest of the world. GroupM is also keeping an eye on the regulatory environment, political headwinds, gains in sponsorship revenues and and AI.

Digital is expected to see a gain of 10 percent, with television at just 2.7 percent.

“The marketing ecosystem over the next few years will face potential impacts from governments and regulatory bodies across the world—impacts that have the potential to upend forecasts and alter even the most sound projections,” the report says. “On top of that, such projections can be skewed by two major players, China and the U.S. Their governments and their major companies have the power to shape vast aspects of the global economy. Artificial intelligence also has the potential to reshape the industry—as do regulations put in place to guide (or control) its growth. Those regulations, of course, depend on politicians, which in turn are determined by upcoming election cycles. Despite some reactionary moves toward protectionism from some of those politicians, we can see the power and enduring appeal of shared experiences brought by globalization, whether it be a Korean series rocketing to the top of the Netflix charts, or Rema bringing Afrobeats to Spotify’s top songs list. You can see it, too, in increasingly global fan bases for sports. With increased globalization—of financial systems, commerce and media—can come a level of resilience as interconnected systems such as coral reefs tend to be very adept at recovering from multitudinous small shocks. Innovation, the exchange of ideas, and a shared goal to make the advertising industry work better for everyone will help ensure a bright future.”