Global Ad Spending to Surpass $1 Trillion: Where’s That Money Going?

October 9th, 2023

Ad spending is set to hit $936 billion in 2023. This is a 4.4% increase over last year — and that’s just the beginning. Next year, ad spending is expected to jump once again.

Keep reading to learn more about the upward trend in ad spending from the digital marketing experts at Cobalt Digital Marketing.

2024 Ad Spending to Top $1 Trillion

The advertising industry group WARC released a report in August showing a forecast for ad spending of over $1 trillion for 2024. The report was based on WARC’s analysis of a survey of ad agencies, industry bodies, media owners, and research organizations, along with revenue information from 40 of the largest media owners.

According to the report, ad spending is set to increase by 8.2% in 2024, nearly twice the increase seen in 2023. WARC’s director of Data, Intelligence, and Forecasting, James McDonald, suggests that 2023 saw a dip due to, “High interest rates, spiraling inflation, military conflict, and natural disasters.”

Where Is Ad Money Being Spent?

WARC further explores where ad money is going. Their analysis revealed that more than half of global ad spending is directed toward five of the largest tech firms on the planet: Alibaba, Amazon, Alphabet, ByteDance, and Meta. Alphabet is the owner of Google and YouTube; ByteDance is the owner of TikTok and Douyin; and Meta is the owner of Facebook and Instagram.

During 2023 alone, ad revenue at these five firms was expected to jump 9.1%, with all other owners combined seeing no increase year-over-year. In 2024, these five firms are expected to see another 10.7% increase in ad revenue.

What Does This Mean for Your McAllen Business?

This increase in ad spending shows just how important marketing is to business success in the modern day. Advertising has never been more essential for businesses, and it’s important that you’re prepared to meet the trend. Specifically, social media advertising is set to see the biggest increase in investment next year with social media marketing driving online shopping.

The next hottest sector is retail media, advertising platforms where businesses can also sell products. If you sell products online, you need to be ready.

Cobalt Marketing Services to Maximize Your Return on Ad Investment

Ad spending is on the rise, and as a business owner, you need to take advantage of that opportunity. Still, not all marketing investments are created equal. Investing in Facebook and Google ads won’t do you much good if you don’t have the insights and techniques needed to stand out from the crowd.

If you want to ride the wave that is 2024 digital advertising, you need to be ready to come out on top. With help from our team of advertising experts, you can see the power of digital advertising for yourself. Draw in new customers, increase sales, and foster customer loyalty with McAllen digital marketing services from Cobalt Digital Marketing.

Start spending your marketing budget the smart way. Reach out to Cobalt Digital Marketing to overhaul your marketing tactics.

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