Attention Cedears: the global advertising market grew strongly this year and these are the leading companies

The projections for the advertising market Globally, they suggest that, in 2024, advertising revenue will reach US$1.04 trillion, which represents an increase of 9.5% compared to the previous year. This milestone will mark the first year in which the industry exceeds this figure, according to the latest report from GroupM, one of the largest advertising buying agencies, which could mean an increase in the shares of those companies that have their Cedear in the Buenos Aires square.

This growth is mainly due to the rise of digital advertising, with platforms such as Google, Meta Platforms and Amazon at the forefront of this phenomenon, highlighting the fundamental role of these companies in the current panorama of online advertising.

Kate Scott-Dawkins, global president of business intelligence at GroupM, presented these results at the Global Media and Communications Conference organized by UBS in New York, where she highlighted that these technology giants currently dominate 41% of total advertising revenues. worldwide and cited by the Bloomberg agency.

The foundation of the boom

This increase occurs in a context in which, although political advertising in the US has played a relevant role, especially due to the increase in advertising linked to the 2024 presidential elections, the forecasts for next year exclude this category . Regarding growth for 2025, GroupM estimates a 7.7% expansion for the entire advertising sector, which suggests a market still expanding, although with a moderation in its growth rate.

During the same conference, Vincent Letang, executive vice president of Magna, a leading market research firm, noted that the momentum of global events, such as the Paris Olympics, has been instrumental in this growth. According to Letang, this year has seen the largest increase in advertising revenue in the last 25 years, if the rebound in 2021 is excluded, which was marked by the economic impact of the Covid-19 pandemic. This phenomenon reflects a solid and sustained recovery of the sector, despite the challenges that the global economy still faces.

On the other hand, the growing offer of streaming services with advertising options, such as Netflix and Peacock, has also been a key factor for the development of the industry. Letang called this phenomenon “great news” for advertising, as it has opened new revenue channels for streaming platforms, which have traditionally maintained an ad-free model. This trend is seen as an opportunity for advertisers, as more and more users of platforms like Netflix are willing to accept advertising in exchange for cheaper subscription fees.

Television coverage of the Olympics, both on cable and streaming through Comcast’s Peacock, has also shown exceptional results, prompting Magna to adjust its expectations for the Los Angeles Olympics in 2028. This type of Massive events continue to be a pillar for advertising growth, generating a high demand for advertising space and, consequently, an increase in the income generated by these broadcasts.

Letang also stressed that consumers’ willingness to tolerate advertising on streaming platforms has changed significantly. At a time when the transition towards streaming services seemed to distance advertisers from users, the growing saturation of applications and subscriptions has led many users to opt for ad-supported versions, allowing them to reduce the total cost of their content consumption. This evolution has been crucial for advertising to once again be an important source of income for streaming services, in a context of increasing costs for users.

The global advertising landscape remains dynamic, with sustained growth driven by digitalization, global events and the expansion of business models such as streaming advertising. This change is shaping a new environment for advertisers, with more options and an audience more willing to interact with ads, which portends a promising future for the industry.