The global ad market has largely weathered the impact of Covid-19 so far, and is on course to reach a value of US$1 trillion in 2025, with more than half of this money paid to just three companies – Alphabet, Meta and Amazon –, according to the latest Global Advertising Trends report from WARC Data.
Following on from a meteoric 23.8% rise to a total of US$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.
A survey of 1.350+ marketing practitioners, carried out recently by WARC (before the emergence of the Omicron variant of Covid-19), shows that two in three marketers already committing budgets to Amazon are intending to increase that spend, while heightened advertiser demand is pushing up the average cost-per-click.
At the same time, two thirds of advertising professionals are planning to up spend on TikTok next year, while YouTube (61% of surveyed practitioners), Instagram (60%) and Google (57%) are also set to benefit from higher spend in 2022.
All product sectors are projected to top pre-Covid investment next year, while most sectors were able to record a full recovery this year. Notable exceptions include transport and tourism, which led growth with an absolute increase of $12.5 billion this year but this is still almost $2.9 billion down on pre-pandemic spending levels.
“Despite potential headwinds, market data show that we are currently witnessing a boom in advertising trade like none seen before, led by increased demand for retail media and ancillary publishers such as Google and Instagram, which is now the world’s largest social platform. Our projections show that this trend is set to continue,” said James McDonald, Director of Data, Intelligence & Forecasting at WARC.