Alpha

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TechApr 29, 2024

The digital ad market is heating up in 2024

Quarterly Results

A.M. Steinbach

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After a brutal 2022, the digital ad market is showing signs of a rebound. Last week, Meta, Alphabet, and Snap all surpassed expectations in earnings thanks to strong ad sales — indicating that brands are more willing to spend on ads, driving up demand for each company’s ad platform.

Meta’s ad revenue surged by 27% in the first quarter, marking its fastest growth rate since 2021.
Alphabet’s total ad revenue rose by 13%, boosted by a 21% increase in YouTube ad revenue compared to the same period last year.
Even Snap, which has struggled with single-digit growth for years, saw revenue rise 21% due to higher demand for its ad platform.

What’s behind this surge? Each company has poured resources into improving their ad platforms — with Meta revamping theirs with new AI features over the past two years and Snap attributing the boost to “progress” in their ad solutions. Analysts at Bernstein also point to “strength in online commerce, gaming, entertainment and media,” along with continued ad splurges from Chinese brands. Plus, election years are always hot for advertising, too, with an estimated ~$15.9B in political ad revenue expected this tense November.

Read: Discover how social media giants are navigating the ad market rebound amid global tensions