The global advertising industry is on track to exceed $1 trillion in revenue for the first time this year, marking a milestone largely driven by the dominance of technology companies. Giants such as Google, Meta, ByteDance, Amazon, and Alibaba are projected to account for more than half of this total, reflecting their commanding presence in the digital advertising market.

According to GroupM, the media agency under WPP, global advertising revenue is expected to grow by 9.5% in 2024, surpassing earlier forecasts despite economic challenges in major markets like the US and UK. The agency anticipates an additional 7.7% expansion in 2025, with most of the gains benefiting the largest digital ad sellers in the tech sector rather than traditional advertising service providers like agencies.

US political advertising, which added $15.1 billion in 2024, has been excluded from the calculations due to its potential to distort year-on-year comparisons. This figure represents a nearly one-third increase from the last presidential election year in 2020. GroupM noted that while the era of near-zero interest rates, which bolstered ad growth following the financial crisis and pandemic, is unlikely to return, advancements in AI and automation are expected to sustain innovation and drive growth.

Digital advertising remains the dominant force, projected to account for 73% of total ad revenue by the end of 2024. This segment is forecast to grow by 12.4% globally in 2024 and another 10% in 2025, a share that rises to 82% when including revenue from digital newspapers, magazines, and streaming services. Traditional advertising methods, including print, television, and radio, continue to face pressure from the shift to digital. Print advertising revenue is expected to decline by 4.5% in 2024 and 3% in 2025, while TV, encompassing both linear and streaming, is anticipated to see modest compound growth of 2.4% from 2024 to 2029.

The US, as the world’s largest advertising market, is forecast to generate $379 billion in revenues by 2025, despite economic headwinds like higher borrowing costs and cautious spending by retailers. In China, advertising revenues are predicted to grow by 13.5% in 2024, reaching $204.5 billion, supported by government measures to boost consumer confidence. Meanwhile, the UK, Europe’s largest advertising market, is expected to see an 8.3% rise in revenue to $53.2 billion in 2024, reflecting continued resilience despite broader economic uncertainties.