• Friday, February 23, 2024
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BusinessDay

Global advertising spend to grow over 8 % in 2024 -study

Why ARCON is reviewing capital requirement for advertising agencies

…Africa spend to be down 11.6% this year

Latest study has revealed that global advertising spend is on course to grow 4.4% this year to a total of $963.5bn and then 8.2% in 2024 to a total of $1.04trn.

Within this period, it is expected that expenditure will have topped $1trn for the first time,

Most African regions will not experience advertising growth this year. The report said Africa is enduring a difficult year, with spend set to be down 11.6%, but growth should return in 2024, buoyed by a 6.1% rise in South Africa next year.

The study was released by World Advertising Research Censer, WARC, media agency that provides insight, intelligence, evidence, expertise, case studies, benchmarks and guidance to help marketers navigate any challenge with confidence.

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Market growth in 2024, it said will be boosted by the US Presidential campaign (political spend is estimated to reach $15.5bn globally next year), sporting events such as the Olympics and Uefa Men’s Euros, and improved trading conditions – particularly in China.

The data shows that just five companies – Alibaba, Alphabet, Amazon, Bytedance and Meta – will attract over half (50.7%) of global spend this year and will consolidate that position into 2024 with a share of 51.9%.

Advertising revenue among this group is expected to rise 9.1% this year and 10.7% next year, while Ad revenue among all other media owners combined will be flat this year.

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The forecasts suggest social media will be the fastest-growing medium, with spend rising to a total of $227.2bn next year – a fifth (21.8%) of total spend. Meta – owner of Instagram, Facebook and Whatsapp – controls almost two-thirds (64.4%) of the social media market, with expected ad revenue of $146.3bn next year. TikTok owner Bytedance then follows, though estimated ad revenue of $39.9bn in 2024 equates to a 17.6% share, some 3.5 times smaller than Meta.

On Regional spend, it said the US will account for almost a third (31.3%) of global spend with the US market is forecast to rise 2.2% to $303.6bn this year, and then a further 7.6% to $326.7bn in 2024.