Advertising to the Global Market

2024: Global Advertising Market Volume for the Year Up 2.6% to $732.89 Billion

In 2023, costs in the global advertising market reached $732.89 billion. For comparison, in 2022, expenses were estimated at $714.32 billion. Thus, growth was recorded at 2.6%. This is stated in a study by Statista, the results of which TAdviser got acquainted with in mid-December 2024.

Statistics also indicate the growth of the global advertising market: Dentsu according to the estimates of this company, the costs in 2023 amounted to $718.6 billion against $695.6 billion in 2022. The largest revenue was provided by digital channels - $418.3 billion, or 58.2% of the total industry at the end of 2023. For comparison, a year earlier these indicators amounted to $388.8 billion and 55.9%. Thus, advertising spending in digital channels rose by 7.6% on an annualized basis.

Advertising on television brought in $165.7 billion against $173.4 billion in 2022, which corresponds to a 4.4% drop. At the same time, the share of this segment decreased year-on-year from 24.9% to 23.1%. In the field of print advertising, a decline of 5.5% was recorded - from $50.1 billion to $47.4 billion. The share of this sector decreased from 7.2% to 6.6%.

Outdoor advertising in 2023 brought in $41 billion against $37.4 billion a year earlier, and growth was around 9.5%. The share in the total mass of expenses rose from 5.4% to 5.7%. Audio advertising costs on an annualized basis increased from $35.2 billion to $35.5 billion, that is, rose 0.8%. However, the share fell from 5.1% to 4.9%. Revenues from advertising in cinemas decreased by 1.4% - from $2.5 billion to $2.4 billion, while the share decreased from 0.4% to 0.3%.

Global advertising spending is projected to rise 5% in 2024 to reach $754.4 billion. Advertising market prospects, as noted in a study by Dentsu, are improving in Britain, Germany, France, the United States and Japan.^[1]

2020: Digital B2B advertising spending to rise 22.6% in US in 2020

This is much more than the growth rate of the advertising market as a whole (1.7%). About a fifth of all spending on digital B2B advertising will be received by LinkedIn.

2019

Take-off of online advertising up to $332 billion, TV up to $192 billion

Main article: Online advertising (global market)

Advertising in US print media is rapidly shrinking

Data for 2019

Zenith Media: In 2021, 52% of advertising expenses will go online

In 2021, online advertising will take more than 50 percent of advertising spending in the next three years, Zenith Media predicts in October 2019.

Dentsu Aegis Network: Global Advertising Market to Grow 3.8% to $625 Billion in 2019

According to experts of the global network Dentsu Aegis Network, presented in January 2019 and based on data from the analysis of 59 markets, in 2019 the global growth rate of advertising will reach 3.8%. As a result, the total investment will amount to $625 billion. Asia Pacific and North America will be major growth regions in 2019, accounting for 42% and 30% of global growth. The contribution to global growth in Western Europe will be 15%, in Latin America - 10%, and Central and Eastern Europe - 4%.

Advertising spending in digital will grow by 12% in 2019, reaching $254 billion and for the first time will exceed 40% of the global share. Digital communication channels will become leading in 26 of the 59 markets analyzed. Moreover, for the first time, the USA, Czech Republic, Malaysia and Singapore will join the list of countries with leading positions in digital.

The rapid growth rate of advertising on mobile devices will continue (19.2%), video formats will take a particularly large share (20%), due to the growing popularity of advertising views on smartphones. The forecast for the growth of social networks in 2019 remains significant (18.4%). In China, mobile devices will account for more than three-quarters of Digital Signage spending in 2019 for the first time.

Programmatic advertising will grow by 19.2% in 2019, as the model begins to be introduced on TV and DOOH.

TV advertising costs are forecast to fall 0.5% amid competition with Netflix, which offers users a video-on-demand service. Nevertheless, television will continue to innovate, especially in the United States - offering new advertising formats, reduced advertising load and attribution solutions. There is a possibility that TV advertising spending will increase again by 1.6% by 2020.

It is predicted that in 2019 the share of radio stations will grow by 1.1% and reach $37 billion - 6% of total expenses. Rapidly evolving technologies - such as voice assistants and smart speakers - are expected to drive the use of audio format.

Traditional advertising in print media will continue to lose ground (the level of decline in newspaper reading - by 7.2% and magazines - by 7% in 2019), as the focus shifts to digital.

Outdoor advertising will continue to grow (up 4% in 2019), reaching 6.3%, with growth driving the use of DOOH.

2018

Google's biggest advertising markets and revenue

Advertising Google revenue in 2018 was 116.3 billion, dollars which exceeds total advertising spending in all countries except the United States. In 2018, Google earned 32% of net global Digital Signage revenue and 38% of U.S. Digital Signage revenue.

Google Ad Revenue vs. Global Total Ad Costs in 2018

The world's biggest advertisers

In early February 2019, Kantar Media announced a ranking of the world's largest advertisers. The study reports that the first place in advertising budgets was retained by the manufacturer of consumer goods Procter & Gamble.

CNBC drew attention to Amazon's 72.5 percent increase in advertising spending, the most in the top ten. The Internet retailer is actively investing in the promotion of its devices and services, despite the negative attitude of the founder and head of the company, Jeff Bezos, towards advertising.

The largest advertisers, data from Kantar Media

Bezos called the ad "the price you pay when your product is unremarkable." True, then the general director revised his point of view.

Kantar Media tracks advertising on television, digital platforms, street shields and various platforms other than social media.

In 2018, Amazon entered the top five largest advertisers with a budget of $1.8 billion, while in 2015 the company was not even in the top 20.

During Super Bowl 2019 (the final game for the title of champion of the National Football League of the United States), which took place on February 3, 2019, Amazon showed at least two videos. Posting one 30-second video during this sporting event costs $5.25 million or about $175 thousand per second, CNBC notes.

From Amazon's financial report for 2018, it follows that at the end of this 12-month period, the company's marketing costs reached a record $13.8 billion, an increase of 37% compared to the previous year. That expense accounted for 5.9% of Amazon's revenue, something that hasn't happened in the last 18 years.

The marketing budget includes "advertising and other costs of promoting goods" (for example, a commission for each attracted client) in the amount of $8.2 billion at the end of 2018 against $6.3 billion in 2017.^[2]

Zenith: Russia will be in the top ten countries in terms of advertising growth until 2020

Russia ranked ninth among countries that will account for the main increase in advertising costs between 2017 and 2020. The main supplier of new advertising budgets will be the United States, whose market over the years will grow by $19.7 billion. In second place will be China with $16.9 billion. The rest of the companies in the top ten will not gain $5 billion during this time, but Russia will still be among the leaders - in ninth place with $1.848 billion. Such data were cited by Zenith in its March 2018 forecast^[3].

Russia, however, will remain outside the list of the top 10 advertising markets, with the U.S., China and Japan also remaining the frontrunners. The entire advertising market will grow by 4.6% in 2018, to $579 billion. Analysts improved the forecast - in December, they expected an increase of 4.1%. Of the new advertising costs until 2020, which will globally amount to $77 billion, the lion's share will be in mobile Internet - $72.6 billion. TV advertising will grow by $6.9 billion, while costs on the desktop Internet will even decrease - by $2.4 billion.

2017

The world's largest advertisers - Ad Age

In December 2018, Ad Age, a professional advertising publication  , published an annual ranking of the largest advertisers. Samsung Electronics rose to the first place.

The advertising budget of the South Korean manufacturer in 2017 amounted to $11.2 billion, which is 13% more than a year earlier. Such large advertising costs for Samsung are due to the need to restore reputation after the 2016 scandal, when the flagship smartphone Samsung Galaxy Note 7 was recalled from the market due to explosion.

In addition, Samsung has to compete with Chinese manufacturers, smartphones Xiaomi, Meizu Huawei whose share in the world is growing not without the help of advertising.

Companies with biggest advertising spending in 2017, Ad Age data

Samsung spends more than others on advertising as a percentage of revenue, with a 5.4% share of advertising and marketing spending in 2017, according to Thomson Reuters. At the end of 2018, expenses in the amount of $14 billion are planned.

According to Ad Age estimates, Procter & Gamble, which ranked first in the list of largest advertisers in 2016, slipped to second position a year later with expenses of $10.5 billion, which almost exactly correspond to a year ago.

In terms of growth in advertising spending, there was no equal to Alibaba Group, whose costs jumped by 105%, to $2.7 billion.

Companies with fastest growing ad spending for 2017, Ad Age data

The Ad Age rating is based on an estimate of money spent on advertising campaigns in a variety of formats, including promotion at sales locations.

Most of all, companies offering products for home and personal care invested in advertising in 2017 - $51.6 billion. In second place are automobile companies with a result of $47.1 billion, in third place are representatives of the entertainment and media industries ($29.6 billion).^[4]

Zenith: Eastern Europe and Central Asia recover quickly after 2014-2015 slump

Advertising markets in Eastern Europe and Central Asia mostly recovered rapidly after the 2009 downturn and then continued healthy growth rates over the next few years. However, in 2014, the Ukrainian conflict seriously led to the advertising market in the region, Russia suffered from sanctions and the withdrawal of international investment. These shocks were compounded by a sharp drop in oil prices, which accounted for 70% of Russian exports in 2014, and a devaluation of Ukrainian and Russian currencies.

As a result, advertising spending decreased by 0.6% in Eastern Europe and Central Asia in 2014 and by 8.0% in 2015. The worst-hit advertising markets began to recover in 2016, and that recovery continued in 2017, beating analysts' expectations for Zenith^[5]. Advertising budgets grew 12.9% in 2017 and will grow 8.8% annually through 2020 - Eastern Europe and Central Asia will remain the fastest growing regional bloc during this period, according to an agency report released in March 2018.

Zenith forecast: Global advertising market to grow to $559 billion (4.2%)

Global advertising costs will grow by 4.2% in 2017 - up to $559 billion. The pace will fall slightly from 2016, when growth was 4.8%, according to Zenith. However, last year there were several high-profile events, including elections in the United States, the Olympics in Rio, football championships in Europe. The events added about $6 billion to global advertising in 2016. With this in mind, the underlying growth will actually be 3.6% in 2016 and 5.4% in 2017.

Markets in Latin America and Central and Eastern Europe have seen a recovery. Brazil has emerged from its longest recession since the 1930s, while Argentina is finally dealing with inflation. The Central and Eastern European market is gaining momentum after conflict and sanctions hit Russia and related markets in 2015. Zenith is forecasting a 4.1% year-over-year increase in advertising in Latin America this year, up 0.2%, and a 7.3% increase in Central and Eastern Europe, up 4.1% from last year.

Asia Pacific is emerging as a world leader. Advertising spending here will grow by $30 billion between 2016 and 2019, which will provide 43% of global growth. The region will contribute almost 50% more advertising budgets than North America, which will grow by $20 billion (29% of global growth). Western Europe will demonstrate growth of $8 billion (11%), Central and Eastern Europe - 4 billion (6%), and Latin America - 3 billion (4%).

By 2019, Asia Pacific will account for 33.4% of global advertising, up from 32.1% in 2016. This will be the first time that this territory will account for more than a third of the total volume in the world. The Asia-Pacific advertising market will still be smaller than the North American advertising market, which will account for 36.3% of global advertising in 2019, but the gap between the two is narrowing. In 2013, the advertising market in North America was $35 billion more than in the Asia-Pacific region, but by 2016 the difference had decreased to $27 billion, and it is expected to fall to $18 billion in 2019.

In terms of advertising categories, advertisers themselves expect growth in the media and entertainment categories, followed by pharmaceuticals and healthcare, as well as alcohol. Telecommunications is most feared - after food and drink and FMCG (excluding food).

Dentsu Aegis Network: 2017-2018 Global Advertising Market Outlook

Advertising spending growth remains at 3.8% amid subdued short-term forecasts Based on data obtained in 59 markets in the Americas, Asia-Pacific and EMEA (Europe, Middle East and Africa), experts from the Dentsu Aegis Network predict more moderate growth in advertising spending at the global level: 3.8% instead of 4.8% in 2016. However, the situation should be resolved by 2018: growth is expected at 4.3%. Events and events of international scale will contribute to the strengthening of the industry in 2018. Among them: the Winter Olympic and Paralympic Games in South Korea, the FIFA World Cup in Russia and the elections to the US Congress .

Despite concerns about the negative impact of Brexit on the economy, advertising spending in the UK exceeded 2016 forecasts - growth is expected at 6.1%. Despite the restrained forecast for 2017 and the projected decline to 4%, next year there may be a rebound to a growth rate of 5.9%. A similar pattern is observed in the United States: in 2017, growth will decrease to 3.6%, and in 2018 it will increase to 4%. The US remains the world's largest player, providing up to 37.7% of global advertising investment. Advertising spending in emerging markets continues to outperform advanced economies. For example, advertising spending is projected to grow 13% in India in 2017, while China - the second largest market in the world in terms of advertising share - remains the only emerging economy that ranks among the top five advertising markets.

Mobile and digital are the main sources of growth

In 2017, digital remains the main driver of innovation in the relationship between brands and consumers. Experts believe that advertising expenses in mobile will outstrip the desktop in the amount of global advertising investments, amounting to 56% - $116.1 billion in monetary terms. The number of mobile subscribers will reach 4 billion by 2025. About a third of consumers report that the smartphone is their main source of content. Experts predict a further strengthening of this trend.

In addition, in 2018, digital will become the main media, overtaking TV for the first time in terms of advertising investment. The digital share is expected to reach 37.6% (34.8% in 2017), equivalent to $215.8 billion. TV's share will be 35.9% (37.1% in 2017). Contextual advertising in 2018 will outpace traditional print media (newspapers and magazines). The print has been on a downward trajectory for several years, with its share falling to 13.8% of total spending in 2018 (15.1% in 2017), while contextual advertising will rise to 14.6% (13.6% in 2017).

Innovation and development of video, social networks and programmatic

In the context of a rapid increase in spending on digital advertising, which can soon be compared with spending on TV promotion, the digital sector is actively developing due to new areas that determine the future of the advertising business. Online video will grow by 32.4% in 2017, social networks - by 28.9%, programmatic (automated advertising purchases) - by 25.4%. Brands need to take into account the potential of innovative formats in advance, including virtual reality, artificial intelligence and voice control systems. However, as you can see from the study, only 8% of all companies today intend to use virtual reality for advertising purposes.

Record UK advertising spending £22.2 (+ 4.6 %)

Advertising spending in the UK rose 4.6 per cent in 2017 to a record £22.2 billion.

2015

2015-2019 PwC Review

Entertainment and Media Industry Review: 2015-2019 Forecast (Worldwide and in Russia) June 2015

• Presentation

Forecast: In 2017, Russia will not be in the top 10 advertising markets

In June 2015, ZenithOptimedia published a report containing a forecast for the volume of advertising markets in the world for 2017. Earlier, in December 2012, analysts of the same company predicted Russia 7th place in the list of leading countries in terms of advertising costs in 2015. According to ZenithOptimedia's forecast of December 2013, Russia was supposed to take 9th place in 2016.

In their new report, analysts predict a 16.5% decline in the advertising market in Russia in 2015, mentioning a significant decrease in oil prices. According to the company, advertising costs in Ukraine in 2014 decreased by 51.2%, and in 2015 they will fall by another 42.4%.

• Presentation

2012: ZenithOptimedia 2013-2015 Forecast

In December 2012, the ZenithOptimedia media communication network published another forecast for the development of the global advertising market. According to experts, in 2013 the growth of global advertising costs will increase by 4.1% (which is slightly less than in the company's October forecast). In total, global advertising spending in 2013 will amount to $518 billion. Most of the positive dynamics, as in previous years, will come from emerging markets, which will grow by an average of 8%, while developed ones will show an increase of only 2%.

According to ZenithOptimedia, online advertising will remain the most dynamically developing type of media, which is caused by the continuing growth of social networks and interest in Internet video. Thus, the global digital sector will grow by 14.6% in 2013, which is almost nine times faster than the dynamics for traditional communications (1.7%).

Regions

North America remains the leading region in terms of advertising costs. This year, the market will reach a volume of almost $172 billion here with an increase of 4.1% compared to the previous period.

The second position is held by the Asia-Pacific region with 140 billion and a projected growth of 6.1% (and excluding the slowly recovering Japan, this figure is even higher - 7.9%).

The third place is occupied by Western Europe with 107 billion, while the dynamics in the "advertising Schengen" is negative (- 2.2%).

Advertising spending in Central and Eastern Europe - including Russia - is several times less than these figures (just over $26.7 billion) and is inferior to Latin America, which is in fourth position (almost 38 billion). The growth rate of Eastern European advertising is also small - only 2.2% this year, although the indicators for individual countries vary greatly: EU member states are showing a decline, while Russia and Ukraine are going uphill quite quickly.

Experts note that in general, the global market continues to recover slowly after almost ten percent failure in 2009; however, the crisis in the Eurozone continues to have a negative impact on the entire global economy: imports from European countries are falling, and the risk of a sharp failure in the economy is instilling uncertainty in the largest advertisers.

In addition to instability in the euro zone, the main risks of 2013 remain the "fiscal cliff" in the United States, caused by the termination of laws on tax breaks and budget control, as well as the growing political conflict in the Middle East: war can spur the rise in oil prices, which will lead to a new round of stagnation.

However, most economists agree that in the next three years the global economy will develop in one way or another. The IMF predicts that the dynamics of global GDP growth will increase from 5.6% in 2012 to 6.9% in 2015. Based on this data, ZenithOptimedia predicts that global advertising spending will also grow in the coming years.

If we talk about regional blocks, the growth rates in which are similar in dynamics, then in the eurozone ZenithOptimedia identifies four countries - Portugal, Ireland, Greece and Spain: all of them suffered from the crisis more seriously than others. Advertising markets in these countries should decrease by 15.3% in 2012 and by another 4% in 2013.

Block Severnaya and Central Europe (Czech Republic, Poland, Hungary, Great Britain, Germany, France, etc.) is developing more slowly than Eastern Europe, led by Russia and Ukraine. Most of these countries are in or have close economic relations with the eurozone. In this region, advertising costs will decrease by 0.2% in 2012, but in 2013 they will grow slightly (by 0.8%).

Eastern Europe and Central Asia continue their rapid recovery from the 2009 crisis. In this block, advertising spending will grow by 10.7% in 2012, and will accelerate in 2013 - to 11.7%.

As for other blocks, Japan continues to recover from last year's disasters: advertising spending will grow here by 3.1% in 2012, and 1.4% in 2013. In developed Asia-Pacific countries (Hong Kong, Singapore, Australia, New Zealand, South Korea) growth will reach 2.3% in 2012 and 4% in 2013. Other countries in the Asian region will see average growth of 10% in 2012.

Despite the sprinting dynamics of developing countries, the United States remains the country that brings the most advertising budgets to the global market.

Media

Online advertising continues to increase its share of total advertising spending. From 2002 to 2012, its share grew by 15%. At the same time, advertising in newspapers fell by 12%, and in magazines - by 5%.

In 2013, spending on online content will exceed newspaper advertising for the first time, and in 2015 digital will bypass the aggregate performance of all printing.

The share of TV advertising at the global level is stabilizing after slow growth in recent decades. Thus, in 1980, the share of TV advertising was 31% of total spending on all media, in 1990 - 32%, in 2000 - 36% and 39% in 2010. Experts believe that its share will slightly decrease from 40.2% in 2012 to 40% - in 2015^[6] its^[6].

Share of media in total advertising spending (%)

Forecast to 2015

According to ZenithOptimedia (December 2012) in 2012-2015, the contribution of the US economy to the advertising industry will be about 28%. In total, the top 7 countries with the largest contribution will account for about 44% of new advertising investments.

In the list of the largest advertising powers in the next three years, change should be expected: only six out of the ten leading countries will remain in the first cohort. So, by 2015, Brazil will bypass the UK in terms of the advertising market and will take fifth place, and Russia will surpass South Korea, France and Australia and become the seventh.

According to ZenithOptimedia, by 2015 the global share of online advertising will grow to 23.4%, while the cost of communication through printing will decrease by an average of 1% per year.

See also

• Mobile Advertising (Global Market)
• Advertising (Russian market)

Notes