The advertising industry is highly dependent on the media for ad placement and the creatives for material production. Consumer use of media plays a role in determining the extent of advertising expenditures – in countries where the print is being substituted by all things digital, newspaper advertising spending will suffer while the internet will command a larger share of investments. However, the generally observed trend is that internet ad spend has already overtaken other media, leaving even TV advertising behind. According to market projections, internet will continue to command larger shares of investments, a trend which will be reinforced by the coronavirus pandemic repercussions.
Advertising often varies by market maturity which directly affects the growth rates – developing markets will experience larger ad spend growth than those which are already saturated. North America is an example of a mature market, with ad investment growth projected at around five percent by 2023. On the other hand, the LATAM and MENA regions show the highest potential to develop in the coming years, at an impressive rate of roughly nine percent.
Globally, digital advertising accounts for more than half of ad expenditures and is set upon a steady path toward future growth. Despite the slight dip in 2020 when even digital advertising suffered due to the coronavirus outbreak, the online segment of the industry has already bounced back. Search, social media, and video are now the dominant formats and will characterize the future of advertising, leaving traditional methods behind.
Advanced TV is a term encompassing all forms of watching television that is not done in a traditional way, so excluding broadcast, cable, and satellite. Advanced TV advertising enables delivery of promotional messages straight to TV receivers (e.g. on connected TVs, VoD, OTT TV, etc ) but with greater accuracy. The advantages of this form of advertising include improved targeting and cross-screen measuring, while among the frequently cited challenges are ad fraud and data transparency.
WPP, headquartered in London, has been on the advertising industry stage since 1971. The company became one of the 'top dogs' among global ad agencies based on revenue alone, and generated around 50 billion British pounds (approximately 57 billion U.S. dollars) in annual billings since 2016. WPP also boasts an impressive market cap of roughly 17.5 billion U.S. dollars.
Advertising data on Statista’s platform consists of figures on advertising spending, revenues, and advertising effectiveness. Spending statistics include overall ad spending, as well as data split by media type. Information on ad campaign reach (local and national) and ad revenue figures for online and offline media are also available. In addition, this section provides survey data on advertising perception and consumption, along with consumer responses to promotional activities of brands and companies.