Data also contributes to assertiveness and activity projects, according to Warc, to exceed US$ 1 trillion in global revenue in 2024
Centennial and an ally of brands in building their reputation and activating sales, advertising has plenty of reasons to celebrate. December 4th, considered the world day of the tool most used by marketing planning professionals, has evolved in this century with digital solutions that added innovation, mathematical precision of data, multichannel, integration, technology, artificial intelligence, retail media, activations , games, connected TV, branded content, merchandising, sponsorships, naming rights, social networks, marketplaces and influencers. Everything is tuned by the only differentiating factor: creativity.
Without it, the activity takes on the air of a commodity and fails to achieve the purpose of generating value in an era marked by extreme competitiveness, the search for the attention of consumers who value their time, like a true jewel. And to buy this time, in addition to the value, creativity is the asset that contributes to advertising and will be the engine that drives all other industries. Or advertisers.
Increasingly, the advertising business is becoming robust. A Warc study shows that this year global growth will be 4.4%, US$ 963.5 billion; in 2024, the prospect is that the increase will be 8.2%, US$ 1.04 trillion. Warc uses the expression resisting turbulence, due to the pandemic, wars and economic weakening, which do not inhibit the increase in investments in advertising.
Five companies Alibaba, Alphabet, Amazon, Bytedance and Meta now attract more than half (50.7%) of global advertising investment and are further consolidating their position, attests to Warc. Next year, the share will rise to 51.9%, according to research carried out in more than 100 countries by Warc, including Brazil.
Social media with a fifth of all spending will drive growth through to 2024, although emerging channels such as retail media and connected TV (CTV) measured for the first time by Warc are also poised to see an increase in investment from brands in the coming years. 18 months, ponders James McDonald, director of data, intelligence and forecasting at Warc and research coordinator.
With the establishment of retail media as an effective advertising channel, the advent of connected TV as the next evolution of conventional video consumption, and the continued growth of social and search media, we are once again seeing the value that advertisers place on by leveraging the first party. Data to direct the right message, to the right person and at the right time. High interest rates, spiraling inflation, military conflicts and natural disasters have created a bitter cocktail over the previous 12 months, but the latest earnings season shows the advertising market has weathered this turbulence and has now turned a corner, says McDonald .
Large communication groups make use of this scenario. But there are new players in the Ad Age ranking. In 2022, WPP accounted for US$17.8 billion, followed by Accenture Song with US$16 billion. Publicis Group (US$ 15 billion), Omnicomm (US$ 14.3 billion) and Interpublic (10.9 billion) appear on the list next, but the sixth position is already occupied by Deloitte Digital (US$ 10.3 billion), ahead of Dentsu (US$ 9.5 billion). IBM is in 8th, with US$6.8 billion.
In addition to platforms and commerce, advertising is adding new agents. That’s good. Because we see that companies like Accenture Song are structured based on creativity. Not surprisingly, the global leader is David Droga; and in Brazil, Eco Moliterno. The way you approach it changes, but propaganda is the art of persuasion. With compliance, analysis, creativity and vision for socio-environmental issues, comments Lucas Feltes, CEO of WT.AG.
The illustration that opens this content was created by AI, with art direction by Bruna Rauber and creative direction by Dudu Rodrigues. They were inspired by a phrase by Angela Davis in 2017, in Bahia: When black women move, the entire structure of society moves with them. Dudu and Bruna used it as a briefing and the result mixes creativity and suitability. Reality and collective construction come at the forefront of change, highlights Dudu.
Read the full story in the November 27, 2023 edition
