The global advertising industry is projected to achieve a milestone in 2024, crossing $1 trillion in total revenue, according to GroupM’s latest This Year Next Year report. The forecast, published by the media investment group of WPP, anticipates a 9.5% increase in advertising spending compared to 2023, driven by strong digital growth and the expanding influence of major advertising sellers.
By 2025, global ad revenue is expected to climb another 7.7%, reaching $1.1 trillion. This growth underscores digital advertising’s dominant role in the industry, as the segment is projected to account for nearly three-quarters of total advertising spend by the following year.
Digital and Retail Media Drive Growth
Pure-play digital advertising, which includes platforms like search, social, and programmatic channels, is set to grow by 12.4% globally in 2024, making it the most significant driver of overall industry growth. The report highlights the rapid expansion of retail media, a category encompassing ad placements on e-commerce and retail platforms, as a key growth area. Retail media is forecast to reach $177.1 billion globally by 2025, surpassing total television revenue—including streaming—for the first time.
This trend reflects broader shifts in consumer behavior and the increasing value advertisers place on data-rich environments, where campaigns can be closely tied to purchase behaviors. For marketers, the surge in retail media spending signifies a competitive landscape that increasingly prioritizes measurable returns on investment.
Mixed Fortunes Across Other Channels
While digital channels dominate, other segments of the advertising industry are experiencing varying levels of growth. Out-of-home (OOH) advertising has maintained its foothold, with digital out-of-home (DOOH) formats projected to contribute 42% of total OOH revenue by 2025. In contrast, traditional audio and print continue to face challenges, as audio revenue is expected to remain flat and print advertising declines further due to digitization and advances in artificial intelligence.
Regional Markets Show Varied Performance
All of the top ten advertising markets are forecast to grow in 2024, though at different rates. The United States and China remain the largest markets, with ad revenue growth predicted at 9.0% and 13.5%, respectively. The UK holds its position as the third-largest market, followed by Japan, Germany, and France. Emerging markets such as India and Brazil also feature prominently in the top ten, highlighting global diversification in advertising investment.
Implications for Marketers
GroupM’s forecast underscores the accelerating pace of digital transformation in advertising. For marketers, the dominance of digital and retail media emphasizes the importance of staying agile and investing in data-driven strategies. With digital platforms capturing more of the ad spend pie, traditional formats like TV and print face increasing pressure to innovate and adapt.
Retail media’s growth, in particular, signals an opportunity for brands to align closer with purchasing behaviors and e-commerce platforms, potentially reshaping advertising strategies across industries. However, the report’s findings also raise questions about the long-term sustainability of this rapid expansion, especially in a landscape heavily reliant on a few dominant digital platforms.
By spotlighting these trends, GroupM’s report offers critical insights into the evolving dynamics of global advertising, providing marketers with valuable benchmarks as they plan for the years ahead.