2024 has arrived, bringing with it new perspectives and trends in the advertising industry. As we move forward in this exciting year, it is essential to understand the key dynamics that are shaping the current advertising landscape. In this analysis, we will explore three fundamental aspects that are defining the advertising industry in 2024, supported by updated data.
Strong Growth in Advertising Investment
It is expected that global media owners’ net advertising revenues will reach an impressive $853 billion this year, representing a 5.5% increase compared to 2022. Furthermore, even more significant growth of 7.2% is projected in 2024.
This consistent growth in advertising investment reflects the ongoing confidence in advertising as a growth driver for brands. Advertising spending accelerated its growth in the second half of 2023, increasing by 6.3% year-on-year following a weaker first half (+4.7%). This resulted in a solid average annual growth of 5.5%.
Continued Dominance of Digital Advertising
Digital transformation remains an unstoppable force in the world of advertising. In 2024, digital investment continues to expand steadily, with a 10.5% increase, reaching an impressive $587 billion, accounting for 69% of all advertising sales.
Digital advertising formats, such as Keyword Search and Social Media, continue to be the primary drivers of this growth. Keyword Search is expected to approach the $300 billion mark this year, with a 9% increase. Social media, including giants like Meta and TikTok, are experiencing strong growth of 15%, reaching a value of $182 billion.
Furthermore, short-form video platforms, such as YouTube and Twitch, maintain a solid growth rate of 9%, with a value of $70 billion.
Connected TV: The Emerging Star
Connected TV advertising is on the rise, with a projected growth of 30.8% in 2024. This rapid growth is due to major video platforms improving their advertising offerings, fundamentally transforming the connected TV channel. Traditional television is being challenged by this new way of reaching the audience.
Global Markets and Growth Sectors
The global advertising market shows a variety of growth patterns in 2024. India continues to be the fastest-growing market, with a 12% increase, reaching $14 billion, becoming the eleventh-largest advertising market worldwide.
China, the second-largest market, is recovering faster than expected after the slowdown caused by the pandemic, with a growth of 9.8%. However, markets in Northern Europe are showing slower growth due to lagging economic activity. The UK is growing at 3.9%, while Germany registers a growth of 2.5%.
In the United States, the advertising market grew by 3.6% this year, reaching $338 billion. Excluding cyclical advertising spending, such as elections and global sporting events, net advertising revenues increased by 5.4% in 2023 and are expected to accelerate to 5.9% in 2024, including an impressive $10 billion in political spending.
NewCom Horizons, as an independent media agency, positions itself as a key player in this evolution. Our adaptive approach and ability to navigate the constantly changing advertising landscape make us a strategic partner for brands looking to stand out in the advertising landscape in 2024. With our commitment to innovation and deep understanding of emerging trends, we are prepared to play a pivotal role in the transformation and ongoing success of the advertising industry. As part of our network of partners in over 50 markets, NewCom Horizons further strengthens its ability to deliver effective and globally tailored advertising solutions.capacidad para ofrecer soluciones publicitarias efectivas y adaptadas a nivel global.
By: MDesign Madrid