End of year global and local ad trends revealed

According to WARC, the international marketing intelligence service, the global ad market is on course to reach a value of $1trn in 2025, with more than half of this money paid to just three companies: Alphabet, Meta, and Amazon.

Following on from a meteoric 23.8% rise to a total of $771 billion this year, advertising investment is forecast to rise by a further 12.5% and 8.3% in 2022 and 2023 respectively, with e-commerce platforms set to lead this growth.

WARC’s propriety survey, the Marketer’s Toolkit 2022 , shows that 2 in 3 already committing budgets to Amazon are intending to increase that spend. A full 66% of advertising professionals are planning to up spend on TikTok next year, while for YouTube the figure is 61%, for Instagram 60% and for Google 57%.

Trends by online media and format

E-commerce: The sector is expected to lead growth to 2023, reaching over $137 billion. Amazon is on course to amass over $57 bn in advertising revenue by 2023 (up 72% from this year). Social media: This was the fastest-growing online sector in 2021, with spend rising 41.9% or $55.7 bn to total $188.8 bn this year. Instagram grew to become the largest social media platform in 2021 and is forecast to grow to control over a third of the global social media market in 2023. TikTok saw ad revenue rise 151.5% this year and is expected to record growth of 75.4% in 2022. OTT video: Premium online video platforms (aka over-the-top (OTT), such as YouTube and Amazon Prime Video, were worth a combined $63.7 bn to advertisers in 2021, up 41.6% from a year earlier. Further growth, of 19.7% and 14.2%, is projected during 2022 and 2023 respectively, with YouTube leading the charge and set to be worth $41.4 bn by the end of the forecast period.

Paid search: Google’s advertising revenue rose by 40.6% to $146.3 bn this year, taking 80% of all search spend and 19% of all advertising spend worldwide.

Online audio: Advertising spend on online audio rose by a third to $5.4 bn in 2021, with podcast spend up 51% and streaming up 28.4%. Both formats are expected to see gains to 2023, by when the online audio sector as a whole is expected to be worth $8.3 bn. Spotify is one of the main players, it is set to see ad income top $2 bn for the first time in 2023.

TV: Advertiser spend on TV is projected to grow by 3.3% to $184.7 bn in 2022 following a 5.5% rise this year.

Out of home: The market recorded a recovery of 21.8% this year, though that was not enough to offset the 28.2% decline recorded in 2020. A growth of 13.3% is expected in 2022.

Cinema: Spend rebounded strongly this year, buoyed by a new James Bond film, to record a rise of 149.9%. Further growth, of 26.1%, is currently projected for 2022.

Broadcast radio: Investment in broadcast radio ads rose by 8.4% or $2.5 […]

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