Advertising Spending Will Accelerate Faster Than Expected In 2024, Says GroupM
First, they came for your jobs. Then, they went for the dried mangos. Finally, they turned off the ad bucks. Since 2022, investors have urged companies to do as their consumers would — be frugal, do more with less, and cut back on spending. But with interest rates expected to start falling, companies are once again embracing a major form of discretionary spending: the ad market. This could be a good sign for the economy and US growth.
- According to advertising giant GroupM, global ad spending is expected to grow 7.8% year-over-year to $989.8B, up from the previously forecast 5.3% growth.
- GroupM also upgraded its forecast for 2025, predicting the ad industry’s first $1T year — a banner milestone primarily led by the US and China.
When big guys get bigger: Outside of a modest downturn in ad revenues in 2022, tech giants like Google and Meta barely saw a dip in ad spending — and are expected to become the biggest beneficiaries of faster advertising growth. Mahoney Asset Management’s President expects Meta, the only Magnificent Seven company that hasn’t done a stock split yet, to do so this year.
