The current state of the advertising industry is characterized by resilience and growth despite economic uncertainties. According to recent forecasts, ad spending in the U.S. is projected to surge by 4.4% this year to reach $570 billion, excluding political advertising. When including political ads, the growth rate jumps to 10.4%, hitting $587 billion[1].
Globally, ad spending is expected to grow by nearly 10% this year, aligning with pre-pandemic growth levels. This growth is driven by strategic spending by advertisers, who are either outpacing emerging competitors or capitalizing on the missteps of incumbents. Prominent advertisers like Mondelez, Clorox, and Adidas have disclosed significant increases in their ad spending during the last quarter or have committed to further ramping it up throughout 2024[1].
Online advertising spending is also on the rise, with PwC forecasting a 12.4% increase to $252.8 billion this year. The compound annual growth rate (CAGR) for online advertising from 2023 through 2028 is expected to be 9.7%, reaching $357.5 billion by 2028[2].
In terms of specific trends, short-form video is emerging as a dominant force in digital marketing. It offers the highest content ROI and will see the most growth of any marketing content format in 2024. Marketers are increasingly investing in platforms like TikTok, YouTube, and Instagram, with 56% of marketers using TikTok planning to increase their investment this year[3].
Social advertising is also experiencing strong growth, with social ad spend climbing 15% year-over-year so far in 2024. Over-the-top (OTT) ad spend in the U.S. has surpassed $10 billion, up 13% year-over-year, outpacing desktop and mobile display but slightly slower than social channels[4].
The industry is also seeing a shift towards more targeted and personalized advertising, driven by the increasing focus on AI and immersive content. AI is revolutionizing decision-making and driving M&A opportunities, with AI talent becoming a scarce and valuable resource[5].
In response to current challenges, advertising industry leaders are focusing on strategic partnerships and collaborations to drive innovation and stay competitive. They are also adapting to the new normal by emphasizing profitability and shifting back to core, profitable business operations.
Compared to the previous reporting period, the current conditions show a more cautious optimism among advertisers and publishers. While there are concerns about economic uncertainties and regulatory changes, the industry is generally resilient and poised for growth.
Key statistics and data from the past week include:
- U.S. ad spending is projected to surge by 4.4% this year to reach $570 billion.
- Online advertising spending is expected to increase by 12.4% to $252.8 billion this year.
- Short-form video is the #1 content marketing format, with 44% of marketers using it.
- Social ad spend has climbed 15% year-over-year so far in 2024.
- OTT ad spend in the U.S. has surpassed $10 billion, up 13% year-over-year.
Overall, the advertising industry is navigating through turbulent economic conditions by focusing on strategic spending, embracing digital transformation, and leveraging emerging trends and technologies.
This content was created in partnership and with the help of Artificial Intelligence AI
