Latest FIPP Digital Advertising Futures report now available

Digital advertising investment is set to accelerate in 2024 as concerns over the global economy start to ease, the latest instalment of the FIPP Digital Advertising Futures report shows.

Made in partnership with InsurAds, the study, that’s exclusive to FIPP members, summarises the latest estimates for the digital advertising market to help FIPP members produce more accurate budgets and forecasts for their own businesses.

Not a FIPP member yet? You can join FIPP membership directly in the report page.

The accuracy of these estimates will be assessed against actual market performance as the review develops over time to ensure the most up-to-date information.

In the new report, released this week, FIPP forecasts that global advertising investment is set to grow by 6.2% in 2024 – revised upward by 0.7%.

The assessment comes at a time when the more dire predictions of a global recession is diminishing, inflation is moderating, central banks might lower interest rates from the second half of the year, and major sporting events and elections are being held in major markets.

While the IMF predicts economic growth in 2024 will be stable, it has highlighted the significant risk an escalation of geopolitical tensions in the Middle East – and its potential to impact international shipping – could have on the global economy.

Then there is the reduced traffic flowing through the Panama Canal due to a multi-year drought. Any additional disruptions to global shipping through the Red Sea could see a spike in commodity prices and keep inflation elevated for longer. It all means that the tone for advertising forecasts for 2024 is cautiously optimistic.

The report indicates that ad growth is likely to peak in the third quarter as some of the most popular quadrennial events, such as EUFA Euro, CONMEBOL Copa America, the Paris Olympics, and the Tour de France, take place.

Domination of the big five

Th report predicts digital pure plays will continue to storm ahead, with growth in excess of 8% (following a 7.4% rise in 2023) – powered by above average growth in retail media, social commerce and short-form video.

The study reveals the sheer dominance of the top five media owners in the world – Alphabet, Meta, Amazon, Alibaba and Bytedance – which now command 50% of the global advertising spend.

The big five all dominate the fastest-growing digital segments, and their market share will continue to grow in the near term as a result.

With each of companies heavily vested in developing AI technology, they are positioning themselves to capitalise on the format changes the technology will introduce. The rise of AI will only accelerate the disproportionate growth rate for these platforms in the longer term, the report predicts.

Among other areas of focus, the study explores how social media growth has rebounded, why the road ahead remains challenging for the television market, how the pace of decline in ad revenue for publishers is set to moderate over the next two years and the ongoing, robust recovery of OOH.

The full report can be downloaded here.

Not a FIPP member yet? You can join FIPP membership directly in the report page.

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