GroupM, the prominent media agency, has recently unveiled its midyear update to the advertising outlook, projecting significant growth in the advertising market. The 2024 Midyear Global Advertising Forecast delves into the potential influence of external factors, such as technology, culture, government, and the economy, on the future of advertising in the upcoming months and years.
GroupM’s projections present a bright outlook for the U.S. ad market, with a robust 5.8% growth expected in 2024, reaching an impressive $365.9 billion, excluding political ad spending. This forecast is a substantial upward revision from the agency’s earlier projections, reflecting a more optimistic and accurate view of the U.S. market. The global advertising revenue is also set to soar, with a projected 7.8% increase in 2024 to nearly $1 trillion, paving the way for surpassing the $1 trillion revenue mark by 2025.
Chart Source: This Year Next Year 2024 Global Midyear Forecast, GroupM website
In the realm of audio ad spending, GroupM anticipates a 1.5% dip in the U.S. this year, driven by a decline in terrestrial audio spending, partially offset by the growth in digital audio. Notably, the report underscores the pivotal roles of digitalisation and the integration of AI in driving ongoing growth across multiple formats, providing valuable insights into the industry’s direction and the future of digital audio advertising.
In 2024, the global revenue for audio advertising is expected to reach a substantial $27.0 billion, representing a 0.8% increase from 2023. Subsequent growth is anticipated to hover around 1% over the following three years, primarily fueled by the expansion of digital audio. This robust growth trajectory is set to elevate the revenue from an estimated $7.9 billion in 2024 to a secure $10.6 billion by 2029, adding nearly three billion dollars to the industry, sparking excitement about the industry’s potential for growth.
Media Channel Forecast
Chart Source: This Year Next Year 2024 Global Midyear Forecast, GroupM website
The report also accentuates AI’s transformative impact on the advertising landscape, particularly within the audio domain, where natural language processing and machine learning are being leveraged to optimise ad serving based on listener behaviour. This integration of AI is driving a significant shift in marketers’ ad spending strategies, with an increased focus on digital audio channels.
As digital pure-play advertising continues to gain momentum, expected to grow by 10% to $699 billion worldwide, the digitalization of traditional channels is also reshaping the advertising landscape. In the U.S. market, GroupM forecasts a substantial 20.7% growth in digital ad spending this year, underscoring the accelerating pace of transformation within the industry.
Chart Source: This Year Next Year 2024 Global Midyear Forecast, GroupM website
Moreover, the report delves into the significant impact of political advertising, estimating that the U.S. political advertising revenue will surpass $15 billion in 2024 and is projected to climb above $17 billion in the next presidential election year in 2028. This notable shift in political spending towards digital channels, including search and social, reflects the evolving dynamics of ad allocation and the increasing influence of digital platforms in shaping political narratives.
GroupM’s midyear report offers a comprehensive overview of the evolving landscape of digital audio advertising, highlighting the transformative impact of digitalisation and AI integration. As the industry continues to navigate dynamic shifts, these insights are invaluable for stakeholders seeking to capitalise on emerging opportunities and navigate the evolving terrain of digital advertising.
The projected growth and evolving dynamics outlined in the report serve as a compelling testament to the transformative potential of digital audio advertising, paving the way for a future defined by innovation, digitalisation, and rapid evolution within the advertising ecosystem.
Click here for an interactive overview of GroupM’s This Year Next Year 2024 Midyear Forecast.
Source: This Year Next Year 2024 Global Midyear Forecast. A report from GroupM, WPP’s Media Investment Group, June 2024
