The global advertising industry is set to experience significant growth in 2024, with spending expected to increase by 10.5% to reach a total of $1.07 trillion, according to WARC’s latest forecast. This represents a 2.3 percentage point increase over the firm’s previous projection and is driven by the adoption of media tools enhanced by artificial intelligence (AI).
In North America, advertising spend is projected to grow by 8.6% to $348 billion, while Europe will see a 5% increase to $165 billion. Latin America is expected to experience a 6.2% growth to $32.1 billion, and the Middle East will grow by 4.2% to $12.6 billion. Asia Pacific, the world’s second-largest market, is forecasted to reach $272 billion with a 2% growth rate.
Meta, Amazon, and Alphabet are set to attract nearly 44% of all ad spending this year, with their share expected to increase to over 46% in the next three years. This dominance of digital channels highlights the shift in advertising trends towards online platforms.
The upcoming U.S. presidential election and the Summer Olympics are expected to contribute to a record year for ad spend in 2024. WARC’s outlook for the next two years is equally positive, with spending anticipated to increase by 7.2% in 2025 and 7% in 2026, resulting in a global ad market worth $1.23 trillion. The growth in global ad investment has outpaced economic output, more than doubling over the last decade.
Digital channels, particularly social media, are driving this growth, with social media accounting for nearly $242 billion of spending in 2024. Meta, Amazon, and Alphabet dominate the social media advertising market, with Meta holding a 63% share. However, TikTok-owner ByteDance is rapidly gaining market share, now capturing a fifth of all social advertising spending.
Search advertising, excluding retail media, accounts for nearly 22% of total ad spending, with Google holding over 84% of the global search market. Retail media is expected to see significant growth in the coming years, accounting for just over 14% of overall spending in 2024. Amazon is set to dominate this channel with nearly $56 billion in ad spending.
Connected TV is also experiencing rapid growth, with the channel expected to be worth $35 billion to advertisers this year. Legacy media, including print, broadcast radio, linear TV, cinema, and out-of-home, now only account for a quarter of total advertising spending.
In terms of industry categories, retail is expected to see a 2.5% drop in global spending, while technology and electronics are projected to grow by more than 13%. Other strong growth categories include alcoholic drinks, clothing and accessories, and business and industrial.
Geographically, North America is expected to be the fastest-growing region, driven by the U.S. presidential elections. Latin America, China, and India are also expected to see significant growth in ad spending. WARC’s analysis is based on data from 100 markets worldwide and projections of advertising investment patterns.
Overall, the global advertising industry is experiencing robust growth driven by digital channels, AI-enhanced tools, and key events like elections and major sporting events. The shift towards online platforms and the increasing dominance of tech giants like Meta, Amazon, and Alphabet are shaping the future of advertising.