Global Ad Market to Hit $772.4 Billion in 2024, Digital Leads

The global advertising market is set to experience significant growth in 2024, with ad spend projected to rise by 6.8%, reaching a staggering $772.4 billion, according to Dentsu’s latest Global Ad Spend Forecasts. This optimistic outlook follows a robust 10.7% growth in digital advertising, driven by major sporting and political events and improved economic conditions in key markets like the US, UK, Brazil, and France.

Digital advertising is expected to remain the fastest-growing channel, with a projected increase of 9.2% in 2025, capturing 62.7% of global ad spend. By 2027, digital ad spend is forecast to hit $513 billion, thanks to the growing influence of retail media, connected TV, and AI-driven advertising strategies. Retail media is anticipated to grow by a staggering 21.9% year-over-year, as advertisers tap into valuable consumer data from retailers and invest in offsite advertising channels like connected TV.

Paid social media is also set for substantial growth, with an expected increase of 8.7% in 2025, supported by platforms that integrate shopping, video, search, and gaming. This channel remains vital for reaching younger audiences, particularly Gen Z, with 79.7% of them using Instagram monthly. Additionally, 42% of CMOs plan to boost investments in influencer marketing, underscoring the importance of social media in engaging consumers.

Paid search is forecast to grow by 6.7%, fueled by continuous advancements in AI-powered features, which help maintain its relevance despite the rise of social and retail search. Meanwhile, online video advertising is predicted to increase by 8.0%, as advertisers prioritize high-attention, trusted environments. Programmatic advertising will see an impressive 11.1% growth and is expected to account for more than 70% of digital ad spend by 2027.

Traditional media channels present a mixed picture. Television ad spend is projected to grow marginally by 0.6% in 2025, with connected TV leading the way at +18.4%, driven by the rise of ad-supported streaming platforms. In contrast, broadcast television is expected to decline by 2.5%. Print media continues its downward trajectory, while cinema and out-of-home (OOH) advertising show steady growth of 3.2% and 3.9%, respectively.

Key sectors driving ad spend growth include finance (+6.4%), pharmaceuticals (+5.8%), and travel and transport (+5.5%), as these industries adapt to changing consumer demands. Will Swayne, Global Practice President at Dentsu, highlights the transformative power of media investment strategies, emphasizing their role in helping brands keep pace with evolving consumer behaviors and unlock new opportunities for engagement.

As digital channels continue to dominate, algorithmically enabled ad spend is set to reach 59.5% of total ad spend in 2024 and is projected to climb to 79% by 2027. Anita Kotwani, CEO of Media for South Asia at Dentsu, underscores the importance of data-driven strategies, stating, “The future of advertising is not just digital—it’s deeply connected, data-empowered, and poised for transformative growth.”