In 2022, the global digital advertising marketing spend reached $602.25 billion, 66.4% of the total media ad spend. The rate of change was reported to be around 15.6%. This is just a fraction of the increase that will continue until 2023. So, two-thirds of the overall media ad spending will go to digital ad spending this year. This includes all forms of advertising on tablets, computers, and smart devices as well. However, last year’s rate hit an all-time high. Digital ad spending increased by 29.9%, and the value reached $521.02 billion. It was the most significant digital ad spending growth seen from 2020 to 2025.
According to the report, digital ad growth doesn’t seem to be slowing down anytime soon. It will keep increasing in the upcoming years. According to the forecast for the following years, the digital advertising market is expected to grow and reach $681.39 in 2023. The increase is 13.1%, slightly less than the one in 2022. In 2024, digital ad spending will be valued at around $756.47, again an 11% increase. It is 70.8% of the total media ad spend. In 2025, it will rise to $820.24 billion and $876.10 in 2026. If one dollar is spent on ads, 72.4 cents and 73.6 cents will be on digital ads in 2025 and 2026, respectively.
During the coronavirus pandemic, people spent much more time at home than usual. As a result, they were exposed to an increased amount of digital media. Online shopping became the only option to buy products and services they required. The pandemic also had a terrible impact on print media. Newspapers and magazines were the ones that suffered the most following the sudden change in the dynamics of the digital world.
The three most prominent global ad agencies, i.e., GroupM, Zenith, and MAGNA, have also updated the forecast for ad growth and digital ad spend. According to them, there will be continued growth in advertising despite economic concerns, such as the price of gas, inflation, and more. The forecasted increase in ad growth is also due to upcoming events. In the U.S, Winter Olympics and midterm elections will boost the ad revenue. The political display ads are expected to be around $8-$9 billion.
According to Zenith, the increase in digital ad spending after 2022 will continue to be around +12% in the upcoming years. It stated that the US ad market spending growth projects an increase of $33 billion, while digital ads are the central part of the growth. For the year, digital ads will account for 57% of the increase in media ad spend. Even Television will continue its slow-paced growth in advertising spending. Its annual growth by 2024 will be 1.1%. Although it has lost most of its audience, the price increase will compensate for the loss. However, the brands will eventually stop investing their money in television ads because of the continuous decrease in the number of viewers. The total ad spending on Television is expected to drop by 4% from 2021 to 2024.
On the other hand, online videos have contributed significantly to the continuous increase in the growth of digital ad spending. It is creating new opportunities for the brands to create awareness among people. Moreover, it enables more and more brands to opt for it because of its low barriers to entry with cost-effective targeting. The gap between Television and online video is constantly reducing. And soon, online videos will be as large as Television used to be in media ad spending.
Other than the US, India will experience an increase in digital ad spending by 21%. As stated by Zenith, it is also expected that ad-supported videos and online videos that CTV drives will soon replace social media. The ad spend for online video is expected to rise by $33 billion from 2021 to 2024 globally.
According to MAGNA, the US ad market will experience growth in ad spend by 11.1%, which is an all-time high rate. Initially, it forecasted the rate to be around 12.6%, but then it changed the statement because of economic factors. It projected the growth based mainly on two sectors, i.e., travel and entertainment. Both sectors got affected severely by the pandemic. The US accounts for 40% of the global ad spend. MAGNA also projects that the cross-platform video ad spend will reach $89 billion, i.e., an increase of 8% for the year. For linear TV, ad spending will experience a drop-off of 4%, i.e $38.6 billion. On the other hand, the local TV will get the maximum share of the political ads, increasing by 19%. Similarly, audio ad spend is estimated to increase by $16.8 billion in 2022.
It is established now that ad spending is continuously increasing globally and will continue for the next few years. Even the well-known ad agencies have shared their stats for different forms of advertising, which shows that the total ad spending in different regions of the world is expected to increase. However, the growth pace and rate might be slightly slower after this year.
Tabinda has been writing since forever, and it seems that her educational background in Economics, politics, management sciences, and psychology has given her an incredibly deep and comprehensive approach when it comes to display ads and PPC.