Changes in global advertising spends in 2024

Analysis

The data displays the annual percentage change in advertising spending worldwide in 2024 across various mediums.

1. Retail Media Surge: Advertising spending in retail media shows the highest growth, with a notable 21.3% increase. This indicates a strong shift toward advertising within retail ecosystems, likely driven by the growing role of e-commerce platforms.
2. CTV (Connected TV) Growth: CTV advertising spending is rising significantly, with a 19.6% increase. This suggests that more brands are investing in digital TV platforms, reflecting consumer trends toward streaming services.
3. Social Media Spending Increase: Social media advertising continues to be a major focus, with a 14.2% rise in spending. The sustained growth of social platforms for targeted and influencer-driven campaigns is evident.
4. Pureplay Internet: Spending on pureplay internet advertising (i.e., digital channels excluding retail media) is up by 14.0%, reflecting the ongoing importance of digital ads outside of traditional media categories.
5. Search Advertising (Excluding Retail Media): Traditional search advertising, excluding retail media, is experiencing a 12.1% rise, showing that search remains a critical channel for performance-driven campaigns even as other mediums grow faster.

1. Retail Media’s Ascendancy (+21.3%)

One of the standout trends of 2024 is the surge in retail media spending, which has grown by 21.3%. Retail media refers to advertising within e-commerce platforms and retail websites, such as Amazon, Walmart, and Alibaba. These platforms offer advertisers access to a highly engaged audience already primed to purchase, creating opportunities for brands to target consumers at the critical point of sale.

Example in Action: Amazon’s advertising business has exploded in recent years, becoming a $38 billion revenue stream. With retail media, brands are leveraging first-party data to personalize ads based on browsing and purchase behaviors. Similarly, Shopify’s introduction of advertising options within its marketplace is creating a direct bridge between product discovery and purchase.

Future Prediction: As more retailers integrate advanced AI-powered recommendation systems and augmented reality (AR) shopping experiences, the value of retail media will only grow. Expect this medium to be a primary vehicle for advertising, particularly with the rise of social commerce, where influencers and brands directly sell through platforms like Instagram Shops or TikTok’s in-app purchasing.

2. CTV Advertising Boom (+19.6%)

Connected TV (CTV) advertising has seen a 19.6% rise in spending, reflecting the shift toward digital video consumption. Streaming platforms such as Netflix, Hulu, and Disney+ have become key players in the advertising ecosystem. As more consumers cut the cord and move away from traditional cable TV, CTV offers advertisers a way to reach highly engaged viewers through programmatic ad placements.

Example in Action: Hulu, known for its ad-supported model, has seen significant growth in ad revenue, with brands taking advantage of its targeting capabilities. Recently, Netflix also entered the ad-supported tier, a major move that opens the door for brands to reach its vast audience in a premium streaming environment.

Future Prediction: As smart TVs become more ubiquitous and audience data becomes more sophisticated, advertisers will be able to deliver hyper-targeted ads based on viewing habits. Additionally, the integration of shoppable ads—where viewers can purchase products directly from TV ads—will make CTV a critical channel for direct-to-consumer (D2C) brands.

3. Social Media Continues to Grow (+14.2%)

Social media remains a dominant advertising channel, with a 14.2% growth in ad spending in 2024. Platforms like Instagram, Facebook, TikTok, and Snapchat offer unique opportunities for brands to engage with consumers through highly visual, interactive, and shoppable formats. Social media’s growth is fueled by its ability to target specific demographics with personalized content and influencer partnerships.

Example in Action: TikTok has become a hub for influencer marketing and viral advertising campaigns. Brands such as Crocs and Gymshark have used TikTok’s algorithm to create viral trends that turn into massive sales boosts. TikTok’s e-commerce features, such as in-app purchasing and dynamic product ads, are transforming how brands approach social selling.

Future Prediction: As generative AI tools become more advanced, social media platforms will likely offer brands new ways to create content automatically, enabling them to scale personalized ad campaigns efficiently. Additionally, platforms are likely to invest heavily in AR and VR technologies, giving rise to immersive, interactive advertisements within virtual environments, especially as the metaverse develops.

4. Pureplay Internet Advertising (+14.0%)

Digital advertising that excludes retail media—such as display ads, video ads, and other programmatic channels—continues to see robust growth, increasing by 14.0% in 2024. This category encompasses ads delivered across websites, apps, and other digital environments where users engage with content outside of social or retail ecosystems.

Example in Action: Google’s Display Network remains a cornerstone of pureplay internet advertising, helping brands reach millions of websites and apps globally. Programmatic advertising, in particular, has allowed brands like Nike and Unilever to reach diverse audiences across multiple touchpoints.

Future Prediction: As cookies are phased out, advertisers will rely more on first-party data and AI-driven tools to optimize programmatic ads. Privacy-centric innovations like cohort-based targeting (such as Google’s Privacy Sandbox) will become the new normal. Brands will need to shift toward building deeper customer relationships through owned platforms to maintain relevance in a cookie-less world.

5. Search Advertising Stays Strong (+12.1%)

Despite the meteoric rise of newer mediums like retail media and CTV, search advertising continues to perform well, with a 12.1% increase. Paid search remains a staple for brands looking to capture high-intent customers actively searching for specific products or services. Google and Bing remain key players in this space, while Amazon’s dominance in e-commerce search is becoming increasingly pronounced.

Example in Action: In 2024, brands like Sephora and Target continue to rely heavily on paid search to capture consumers at the moment of need. Google’s AI-powered Performance Max campaigns allow advertisers to manage search, display, and video ads in a single campaign, optimizing results across Google’s entire network.

Future Prediction: AI and machine learning will play a more prominent role in search advertising as tools like Google Bard and ChatGPT integrate with search engines to provide richer, more conversational results. Voice search, powered by virtual assistants like Alexa and Google Assistant, will also become a bigger piece of the search advertising puzzle, requiring brands to rethink how they approach keywords and content optimization.

Conclusion

As we look to the future, the advertising landscape will continue to be shaped by advances in technology and changing consumer preferences. Here are a few predictions based on current trends:

AI and Automation Will Dominate: From generative AI tools for ad creation to machine learning algorithms that optimize campaign performance, AI will become an essential part of the advertising process. Brands will use these technologies to scale their advertising efforts and create personalized experiences at a fraction of the cost.

Immersive Experiences Will Become the Norm: As AR, VR, and metaverse platforms develop, advertising will shift from static or video formats to fully immersive experiences. Brands will create virtual showrooms, interactive product demos, and gamified advertisements that allow consumers to engage with products in new ways.

Data Privacy Will Shape Ad Strategies: With the end of third-party cookies and increasing privacy regulations, advertisers will need to prioritize first-party data and consent-driven marketing strategies. Brands that build trust with consumers by being transparent about how they collect and use data will come out ahead.

Sustainability and Ethical Advertising Will Rise: Consumers are increasingly demanding that brands demonstrate social responsibility. This will lead to more eco-conscious, ethical advertising campaigns that resonate with audiences who prioritize sustainability.