Dentsu's Global Ad Spend Forecasts predict a robust expansion in advertising spend by $33 billion in 2024, reaching a total of $752.8 billion. This represents a year-over-year growth of 4.6%, outpacing the growth seen in 2023 (+2.7% vs. 2022).

Media price inflation continues to be a significant factor in this growth. However, when considering global advertising spend at constant prices, the projected increase for 2024 is a more modest 2.5%, compared to 2023 spending.

Digital advertising is set to command a lion's share of the global advertising spend, reaching $442.6 billion in 2024, which is 58.8% of the total. The growth rate for digital advertising is forecast to be 6.5% in 2024, continuing the trend of single-digit growth first observed in 2023 (6.3%).

The forecasts also show Connected TV ad spend expected to see a significant surge, with growth predicted to double year on year, up 30.8% in 2024.

"Despite the current worldwide geo-political instabilities and economic outlook, in 2024 we can see how significant major political and sporting events are for creating positive growth in ad spend," Will Swayne, Global Practice President - Media at Dentsu, commented.

The report also introduces new 'Cost per Capita' and Gross Domestic Product analysis for holistic ad spend comparison for brands. In 2024, advertising spend is forecast to represent, on average, 0.75% of the GDP of the countries tracked. Advertisers will spend, on average, $139 per capita across the world in 2024, about 75% more than what they spent 20 years ago ($80).

Retail media investments in the digital space are set to accelerate the fastest with a 17.2% three-year CAGR, followed by paid social investments (12.3% three-year CAGR). TV is predicted to return to growth (2.9%) and capture 23.0% of ad spend in 2024. Connected TV is forecast to experience a rapid 30.8% growth. However, print is expected to contract by -3.3%.

Regionally, the Americas, the largest region in terms of ad spend, is forecast to overtake Asia-Pacific as the most dynamic with 5.8% growth in 2024. Asia-Pacific is predicted to grow by 4.0% in 2024, and EMEA by 2.7% growth.

Two sectors in particular are forecast to grow at a much faster rate than the global average: travel and transport (7.5%) and pharmaceutical (7.4%).

The report also shows that in 2024, significant media opportunities arise for advertisers from major cyclical sporting and political events such as UEFA EURO2024 and the US presidential election, driving increased investments both at a market and international level.

"We’re excited to share our latest Dentsu global ad spend forecast for 2024, which predicts moderate growth for Australia and APAC driven by continuing growth in Travel, Automotive and Food and Pharmaceutical, as well as bounce back in the Retail, Finance and Technology sectors," Ken Lam, iProspect Australia National Head of Investment, added.

"Whilst locally, we have seen a relatively strong 2023 so far with total ad spend back only 2% Jan-Oct YTD from a record year in 2022, despite a year of economic uncertainty. With the latest news from RBA to pause interest rates in their final meeting this year, there should be optimism for advertisers heading into 2024, and a great opportunity for brands to accelerate growth through opportunities in emerging tech like AI, advancing automation and digitalisation capabilities to maximise performance, effectiveness and outcomes."