Get Ready for a Boom in Global Ad Spend
Whenever a dramatic shift in worldwide events takes place there is corresponding impact to any number of industries. The current exception to this rule is advertising; specifically global advertising. The global ad spend for the rest of the year, and on into 2024, is beyond strong. How strong?
A record-breaking era for global ad spend
As reported in Marketing Dive, global ad spend is projected to grow 4.4 percent for the remainder of 2023. As if this were not impressive enough, this growth will extend into next year at the rate of 8.2 percent. Eventually, global ad spend will surpass the unprecedented figure of $1 trillion! What makes this turn of events even more noteworthy is that current concerns shared by many—such as the economy and increase in diagnoses of COVID-19—are not hindering the upward journey of global ad spend. Contributing to this growth are other events on the horizon…
Competitive sports and politics equals lots of ad dollars
Next year will be witness to, among other happenings, the Summer Olympics, the UEFA (Union of European Football Associations) European Championship, and of course, the U.S. Presidential election. Additionally, there has been an improvement in international trading conditions, particularly in China. These sporting and political events, combined with healthier trade relations, are helping to pave the way for global ad success. And what forms of media will be at the forefront of this success? Social media, retail media, and connected television (CTV).
For those who doubted the power of social media in marketing, they need only to consider that popular platforms such as Facebook, Instagram, and TikTok (among others), will collectively account for a staggering $227.2 billion of ad spend next year. Marketers increasingly realize the effectiveness of social in maintaining the bond between brand and consumer, not to mention easily reaching prospective target audiences.
Retail media, which connects with customers at (or near) their point of purchase, is nothing new. In-store advertising has been active for generations, but has been effectively boosted by online advertising. Many consumers eagerly coupons, vouchers, and loyalty cards, among other retail media-related items, and this method of advertising is expected to be worth $141.7 billion in 2024. Complementing retail media is the relatively new format of connected television (CTV).
Connected television (CTV)
Taking third place in this collection of global ad spend success is connected television (or CTV), where people opt to stream video via a smart TV that connects to the Internet or through an over-the-top (OTT) device that plugs into a traditional television. The popularity of CTV has steadily grown over the years, as has the effectiveness of brands getting their messages to interested viewers. Next year, CTV will reach $33 billion in ad dollars.
The future of advertising is healthy. Many industries—whatever losses or downturns they may face—realize the value of a strong campaign to promote their goods and services. If you are seeking a partner that will help your brand go far in the new year, contact EGC and learn about the full suite of services we have to offer—which include marketing, creative, social media, and more. We will see to it that your ad spend will be a very wise investment for you and your brand.