ADVERTISING MARKET

The advertising market was and still is one of the largest markets in the world, with annual revenues estimated at billions of dollars.

Advertising has evolved over the years to become a major driving force behind the modern economy, and the third decade of the 21st century will see the industry usher in a new era of technological possibilities, with the apocalypse of virtual and augmented reality.

As for the latest reports on the true and accurate value of the global advertising market and its performance in 2021, there is no agreement between the prominent international advertising agencies (Group M – Zenith – Magna) but the reports presented are very similar.

The « Group M » announced that the growth rate of the global advertising industry reached 25% in 2021, which is the highest historical level of the industry.

The global advertising market in 2021 reached a value between 678 and 766 billion dollars, with estimates that it will reach one trillion dollars by 2025.

According to BUMP (the standardized measure of the advertising market), net advertising revenue from all media, including digital, is approximately $17.5 billion in 2021, a strong increase of more than 18.3 percent compared to 2020.

Digital advertising:

Online advertising is a thriving industry with a lot of opportunities for growth and prosperity for businesses. It has grown exponentially over the past several decades and has taken over traditional media.

The three agencies (Group M – Zenith – Magna)  expect advertising spending to continue to grow strongly this year, especially digital advertising, which is beginning to outpace the Advertising through traditional means since 2020, which was a watershed and pivotal year in the history of the advertising market, as digital advertising on the “Google”, “Facebook” and “Ali Baba” platforms exceeded spending on traditional advertising means for the first time.

Alphabet , parent company of Google reported 2021 revenue of $257.6 billion, an impressive 41% increase from $182.5 billion in FY 2020.

Youtube’s global ad revenues were $28 billion USD in 2021 That’s up 46% from the year before.

Facebook’s revenue from advertising which totaled $114.93 billion USD in 2021.

Instagram advertising revenue is around $26.46 billion in 2021.

Microsoft announced that LinkedIn has generated more than $10 billion in income over the past year for the first time in its history, driven by the huge momentum of the global digital advertising market.

M Group expects in a report issued on June 13, 2022 that Pure-play digital advertising platforms will grow by 11.5% during 2022.

Social media advertising budgets are expected to grow 11.76% annually by 2026.

Total money spent on digital advertising has increased over the years, and experts expect this spending to rise by $121 billion over the next two years.

According to the 2021 Statista Research, smartphones are a major entry point for internet access in many markets around the world and have also become the most popular device for watching video content.

Global spending on mobile advertising is expected to reach $413 billion by 2024.

There is a growing dominance of mobile devices compared to desktop computers, with up to 57.4% of all web traffic and more than 50% of digital ad spend being used on mobile devices.

The most attractive spaces for advertisers to place their ads were search results and social media platforms, as well as mobile games.

68% of companies have integrated mobile marketing into their overall marketing strategy.

71% of marketers believe mobile marketing must be at the core of their business-development plans.

The global digital advertising and marketing market was valued at $350 billion in 2020 and is expected to reach $786.2 billion by 2026.

According to “MakeaWebsiteHub”, 63% of companies increased their digital marketing budgets in 2021.

72% of total marketing budgets are allocated to digital marketing channels.

According to wordstream digital ad spend worldwide is estimated at $441 billion in 2022 ad projected to reach $485 billion in 2023.

According to the « Bureau of Labor Statistics » the overall employment of advertising and marketing managers is projected to grow by 10% from 2020 to 2030, which is higher than the average for all occupations. The « Bureau of Labor Statistics » highlights the shift from traditional and print-based to internet-based advertising.

 

Advertising Market Concentration

According to the « GroupM » report, the global economic conditions of inflation and increasing wages have made it more difficult to enter new competitors that destabilize the advertising market:

5 technology companies own 53% of the global advertising market, up from 46% in 2020.

The top 25 ad platforms own 74% of what is spent on advertising worldwide, up from 68% in 2020.

The five largest advertising vendors in 2021, a group that includes Google, Facebook, Alibaba, Bytedance and Amazon, generated $408 billion in ad revenue, or 53% of the global total.

Advertising is the main source of revenue for the largest companies in the world

Alphabet’s annual report indicated that Google’s main source of income is effective online advertising, which accounts for 96% of its revenue, followed by Google Cloud and other Google revenue streams which are Google Play, Pixel phones and YouTube Premium.

97.4% of total revenue from Facebook, which is the main product of Meta, is from advertising and the rest is from Reality Labs, the augmented and virtual reality product arm.