Digital Surge Propels Global Ad Market To Nearly 6% Rebound From 2022 Levels, GroupM Estimates; Nearly Half Of TV Ad Dollars Have Shifted To Streaming
04.12.2023 - 14:31
/ deadline.com
Major media agency GroupM says global ad revenue in 2023 will come in at about $889 billion, with year-over-year growth of 5.8% matching the company’s mid-year estimates.
The tally, which excludes political spending because of its highly cyclical nature, is expected grow at a slower rate of 5.3% in 2024 due to inflation and other macroeconomic factors.
Spending overall in 2023 has benefited from a surge in digital spending. “Pure play” digital advertising, a category including YouTube and TikTok but not counting connected-TV and digital out-of-home, will end 2023 up 9.2% over the prior year, exceeding GroupM’s prior expectation of an 8.4% gain. By 2028, pureplay digital will be larger than the entire advertising industry was in 2022, the company said.
Connected TV continues to climb as streaming gains ever-more clout, and the category is expected to grow 13.8% in 2024 compared with this year.
Sports programming is increasingly a magnet for ads across streaming or linear TV, and is winning an increasing share of total viewing. Sports accounted for 23.5% of all viewing hours this year, up from 14.1% in 2018, GroupM said. “Sports is one thing that continues to bring a community experience, a shared experience,” Kate Scott-Dawkins, GroupM’s global president business intelligence, said during a press briefing.
The U.S. and China remain the two largest markets in terms of ad revenue, in that order, but the UK leapfrogged Japan to take the No. 3 spot, largely due to the weakening of the Japanese yen over the last six months.
Media companies like Warner Bros. Discovery and Paramount Global have reported softness recently in their ad businesses, which has raised alarms among some investors. Traditional media players are all