The global advertisement market will continue its recovery from the 2020 downturn with 9.1 percent growth in 2022, after 15.6 percent growth in 2021, according to an Advertising Expenditure Forecasts report published by the advertising firm, Zenith and the world’s leading media investment company, GroupM.
Global Ad spend will expand by 5.7 percent in 2023 and 7.4 percent in 2024, with brands looking to leverage more online videos, advanced TV, eCommerce channels and social media companies such as Google and Meta, formerly known as Facebook.
In 2022, advertising across all digital platforms will exceed 60 percent of global ad spend for the first time, reaching 61.5 percent of total expenditure and their share will rise to 65.1 percent by 2024. According to Zenith, global ad spend reached $705 billion in 2021, up from $634 billion in 2019, and $873 billion by 2024.
The pandemic has disrupted shopping habits, rapidly accelerating the adoption of eCommerce. Businesses have responded by investing in new technology, infrastructure, organizational change and advertising.
This includes brand advertising to promote eCommerce platforms, performance advertising to direct traffic to them, and advertising within these platforms to promote specific products, all of which have surged. Zenith estimates that global digital advertising will expand 25 percent year on year in 2021.
Mr. Brian Wieser, global president of business intelligence at ad agency GroupM, said that new businesses formed during the pandemic needed to advertise to get customers, while others likely maintained ad expenditure to stay in front of consumers’ minds.
The growth has benefitted major digital ad sellers Alphabet, Meta, and Amazon, which now account for more than half of all advertising spending outside of China, up from about 40 percent in 2019, according to GroupM.
According to a market research company, eMarketer, adult social media users in the US are spending 60.4 percent of their time with Meta and Instagram this year, down from 74.8 percent in 2017. That’s the result of the rise of TikTok, which grew from nothing to 15.1 percent of social media usage over this period.
In addition to commerce, the platforms are developing new advanced interactions between brands and consumers. Self-serve technologies could be used by brands to develop Augmented Reality (AR) experiences and then distribute them through targeted advertising to raise brand recognition and intent to purchase.