The dentsu Global Ad Spend Forecasts for 2024 reveal the data and trends that will mould the advertising industry in 58 countries across the world. Let’s dive into the crucial numbers that show how advertising could move forward in the coming year.

1. Astounding Growth in Global Advertising Spend

The most recent projections by dentsu indicate that there will be a robust 4.6% growth in the amount of money spent on advertising worldwide in 2024. This increase brings the total value of the industry to a staggering $752.8 billion, adding an astounding $33.0 billion to the total.
The impact of inflation is particularly noteworthy because the inflation of media prices is a driving force that significantly influences growth. Compared to the amount spent in 2023, the projected increase is a slightly more conservative 2.5% when adjusted for inflation.

2. Dominance of Digital Technology

  • 6.5% Growth: The digital advertising industry is expected to reach a staggering $442.6 billion in 2024, with a predicted 6.5% growth rate.
  • 58.8% of Global Spend: It is indisputable that digital advertising is the dominant form, accounting for 58.8% of the total global advertising budget.
  • Future Trajectory: It is anticipated that the slowdown that was observed in 2023 (6.3%) will continue, with a compound annual growth rate (CAGR) of 6.3% being forecasted for the next three years up until 2026.
  • Incremental Investment: Although the growth rate has slowed down, digital advertising continues to be the primary driver of global advertising spending, and it is expected to capture an additional $27.1 billion in the coming year.

3. CAGR for Digital Channels

  • Retail Media Reigns: Retail media has emerged as a star performer in the digital realm, with a remarkable CAGR of 17.2% over the past three years.
  • Programmatic Powerhouse: There has been a 10.2% CAGR over the past three years for programmatic channels, which command more than 70% of the digital spend.
  • Paid Social Momentum: Following closely, paid social investments are expected to increase at 12.3% three-year CAGR.

4. TV’s Revival and the Exponential Rise of Connected TV

  • Return of Television: Television is anticipated to regain 23.0% of ad spending in 2024, following two years of decline, and is expected to grow 2.9%.
  • Connected TV Ad Spend: Spending on connected TV ads soars by 30.8%, almost twice the rate seen in 2023 (15.9%). The major video platforms have improved their ad offerings, which is responsible for this surge.

5. Sectoral Surges and Regional Dynamics

  • Americas Dominance: The Americas are expected to surpass Asia-Pacific in terms of dynamism in 2024, with a substantial 5.8% growth.
  • Asia-Pacific Momentum: The forecast for the Asia-Pacific region is a growth of 4.0%, an increase of 0.5 percentage points from 2023.
  • EMEA Growth: With a 2.7% growth rate, an increase of 0.8 percentage points from 2023, even EMEA is not behind.

6. Quarterly Variations and Sectoral Rise

  • Quarterly Peaks: Although growth might be a bit slower in the first quarter at 4.2%, it will pick up speed in the second quarter, reaching a peak of 5.5% in the third quarter, driven by big sporting events.
  • Sectoral Leaders: Travel and transport (7.5%) and pharmaceuticals (7.4%) emerge as frontrunners, growing at a much faster rate than the global average.

The global advertising landscape of 2024 is tied together with numbers, with each figure reflecting a story of growth, revival, and the dynamics of different sectors. Advertisers need to pay attention to these forecasts to successfully navigate the complexities of a constantly evolving industry and use them as a compass.

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