Study Projects Global Ad Spend to Increase by 7.7% in 2024

Global advertising and marketing spending is anticipated to surge in 2024, with a projected growth rate of 7.7%, according to new research revealed by PQ Media.

The expected uptick comes after a decelerated 4% growth in 2023 that reached $1.631 trillion, according to the press release about the new report, which is available for purchase.

Last year, digital and alternative media spending witnessed a notable increase of 10.4% to $824.46 billion, while traditional media spending declined by 1.9% to $806.12 billion.

Despite the overall growth, 2023 still marked the lowest growth rates since 2015, largely due to inflation concerns and recession fears. Major brands reacted by slashing media budgets across various platforms, particularly in traditional media.

A Shift in Spending Patterns

PQ Media's "Global Advertising & Marketing Spending Forecast 2024-2028," reveals significant shifts in spending patterns.

As inflation rates cooled and supply chain issues began to level, brands began increasing ad and marketing budgets by December 2023, driven by rising consumer confidence.

Early 2024 pacing data shows that brands continue to increase their budgets, as more consumers are shopping at brick-and-mortar stores, driving more miles in automobiles, and attending events after years of being sequestered by the pandemic," PQ Media CEO Patrick Quinn stated.

Quinn also noted that if this year's Super Bowl was an indication of consumer viewing habits, brands might increase spending to be included in over-the-air, digital and streaming coverage of the Paris Summer Olympics.

What Types of Media are Brands Spending On?

The report identifies a significant shift towards digital and alternative media, which surpassed 50% of total media spending for the first time in 2023, reaching 52.6% compared to 38.2% in 2018.

Notably, brands in 12 of the top 20 global markets allocated over 50% of their budgets to digital and alternative media, with Australia leading at 71.1%, and the U.S. ranking seventh at 57.7%.

Another noteworthy trend is the faster growth of the alternative ad and marketing subsector compared to digital media.

Brands are increasingly turning to influencer marketing, content marketing, digital-out-of-home advertising and experiential marketing to engage target audiences

Streaming video services also experienced accelerated growth, with platforms introducing ad-supported tiers and competing for coverage of live sports events.

The upcoming 2024 Summer Olympics in Paris is expected to further drive traditional media spending, offering a chance for these platforms to rebound from a challenging 2023.

In Western Europe, TV networks licensed to carry Olympic events anticipate a windfall of ad dollars, particularly as key live competitions will be shown on prime time.

Simultaneously, the intensifying political division in the U.S. is expected to result in record fundraising growth, supercharging political media buying to nearly double the $7 billion spent in 2016, which PQ Media expects will total $14 billion this year.

Editing by Katherine 'Makkie' Maclang