Advertising Expenditure Worldwide Climbs Up, Yet Digital Expansion Slows Down Significantly
Futuristic Ad Spend: Here's a scoop on the anticipated surge in global ad spending, primarily fueled by digital channels. According to Dentsu's latest global forecast, digital ad spend is expected to touch $727.9 billion this year, with $3 out of every $5 being drained into digital channels over the next three years.
The forecast covers 58 markets across the Americas, Europe, Middle East and Africa, Asia-Pacific, digital, television, print, out-of-home, audio, and cinema.
Pressing the Pause Button
Dentsu had earlier predicted a slowdown in growth for the ad sector in 2023, but it's expected to pick up speed again in 2024, hitting $762.5 billion. This forecast coincides with wider industry trends pointing to substantial increases in digital advertising budgets, driven by data-driven strategies and technological innovation.
Bracing for the Same or More
A recent survey by iSpot Upfronts reveals that an astounding 74% of brands and agencies are gearing up to maintain or increase their ad spending levels compared to last year. This trend suggests a robust and stable outlook for the marketing sector, even amidst economic fluctuations.
Deep Dive into the Trends
The global AdTech market is anticipated to soar to a staggering $1,580.86 billion by 2030, driven by increasing demand for programmatic and AI-enhanced advertising. The in-game advertising market, another digital advertising format, is projected to grow from $10.8 billion in 2025 to $17.7 billion by 2030. Social media advertising, a significant component of digital ad spend, is expected to expand from $252.95 billion in 2024 to over $286 billion in 2025 and reach $466.56 billion by 2029.
The growth in these digital advertising formats is propelled by ongoing innovations such as short-form video, social commerce, AR/VR integration, and a heightened focus on privacy and security within social platforms. Moreover, the immersive technology market, expected to grow at a CAGR of 26.9%, will further influence the advertising landscape, enabling more interactive and personalized ad formats.
The Future of Digital Spend
Privacy concerns and regulations like GDPR and CCPA are shaping the way digital budgets are spent and the technologies adopted. Brands are investing in privacy-compliant, cookie-less advertising solutions. Programmatic advertising and AI-based solutions offered by leading tech companies will continue to dominate, increasing the efficiency and precision of digital ad buying.
In essence, the global advertising spend is set for a significant boost over the next few years, with a strong focus on digital channels. The diversion of budgets is expected to include interactive and personalized advertising formats like in-game ads, social media, and immersive AR/VR experiences, all while addressing privacy and data security concerns.
- Despite the predicted economic fluctuations, a recent survey indicates that 74% of brands and agencies plan to either maintain or increase their ad spending levels compared to last year, suggesting a resilient outlook for the marketing sector.
- The growth in digital advertising formats, such as social media and in-game ads, is stimulated by ongoing technological advancements like short-form video, social commerce, AR/VR integration, and a focus on privacy and security within social platforms, with the global AdTech market expected to reach $1,580.86 billion by 2030.
