Global Ad Spend to Hit $1 Trillion by 2024: AI Drives Growth

Ad Revenue on the Rise

Global advertising spend is projected to experience significant growth in the next three years, with a 10.5% increase expected in 2023, reaching $963.5 billion. This upward trend is anticipated to continue, leading to a $1 trillion milestone in 2024. The market is expected to expand further, reaching $989.8 billion in 2025.

Artificial intelligence (AI) is a significant contributor to this surge in advertising expenditure. AI-powered technologies optimize ad targeting, enabling businesses to reach their intended audiences more efficiently.

Key Findings

• Global ad spend is forecast to increase by 10.5% in 2023, reaching $963.5 billion.
• AI is driving the growth in ad expenditure, enabling more effective targeting.
• Digital advertising is projected to account for over 60% of ad spending in 2023.

Digital Domination

Digital advertising continues to dominate the market, with a predicted 60% share of total ad spend in 2023. Online advertising formats, such as social media, search engine marketing, and display advertising, are expected to drive this growth.

Mobile advertising is a key contributor to the digital advertising space, with smartphones becoming the primary device for internet access.

Regional Trends

North America

North American advertising expenditure is anticipated to experience a steady increase, reaching $348.1 billion in 2023. Digital advertising is the primary driver of this growth, particularly in e-commerce and social media platforms.

However, the region is expected to face challenges due to economic headwinds.

Asia-Pacific

The Asia-Pacific region is projected to witness the highest ad spend growth, with a 12.2% increase forecast for 2023. Emerging markets within the region, such as China and India, contribute to this surge.

The region's advertising landscape is expected to be heavily influenced by the adoption of digital technologies.