A study by Warc indicated that three companies will be responsible for more than 70% of the value that should reach US$ 1.07 trillion
Warc has presented a new study that indicates that global investment in advertising is expected to grow 10.5% this year, reaching a total of US$ 1.07 trillion, with three companies responsible for more than 70% of the value, namely Meta, Amazon and Alphabet.
The study also pointed out that the market expects the trio to attract 43.6% of all advertising revenue this year, increasing to a share of over 46% by 2026.
Data from the Global Ad Spend Outlook 2024/25 also showed that the increase in investment in advertising is expected to be 7.2% next year and, in 2026, 7%, bringing the market to US$ 1.23 trillion.
“The global advertising market has doubled in size over the past decade, with ad spend growing nearly three times faster than economic output since 2014. Three companies – Alphabet, Amazon and Meta – have been the biggest beneficiaries of this period of expansion, attracting seven out of every ten incremental ad dollars over the past decade,” explained James McDonald, director of data, intelligence and forecasting at Warc.
The new projections also showed that online-only businesses are expected to see a 14% increase in advertising revenue, reaching $735.7 billion. Retail, social media and CTV are expected to lead digital growth from 2024 to 2026, accounting for more than 85% of online spending.
“With retail media expected to drive growth in ad spend over the next few years, and with new and diverse players emerging in the ad business, we are once again seeing the value of first-party data in targeting the right person with the right message at the right time. This data, combined with new AI enhancements, will form the fabric of the advertising industry for the next decade and beyond,” McDonald added.
In the regional breakdown, the Warc study indicated that North America should register growth of 8.6%, reaching US$ 346 billion, while the Asia-Pacific (APAC) region should increase by 2% (US$ 272 billion). Europe should reach growth of 5%, reaching US$ 165 billion.
In Latin America, growth is expected to reach 6.2%, bringing the region to US$32.1 billion. Specifically regarding Brazil, the survey indicates that the country is expected to register growth in local currency of 9.6% this year, reaching a total of R$85.7 billion (US$14.8 billion).
Forecasts also showed that online advertising will account for more than half of the Brazilian advertising market, at 50.4%.
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