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CEO North America > Business > Industry > Landscape of the US advertising year

Landscape of the US advertising year

in Industry, Opinion
- Landscape of the US advertising year
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Recent estimates show that the US advertising market is poised for further growth in the next few years and what 2019 meant for the industry.

Advertising burst upon the United States in the 1800s, and since then, the landscape has been ever-growing.

And since the rise of digital, advertising revenue and spending has peaked in all the possible formats even more, especially driven by mobile growth. This burst has become inevitable and is now expected to surpass all expectations. On one side, GroupM expects ad revenue to grow to $281 billion a year by 2024, up from $227 billion this year. Unsurprisingly, GroupM adds, the increase will mainly be driven by a steep rise in online advertising sales, which are expected to grow by $60 billion between 2019 and 2024.

Considering total global advertising market during 2020, GroupM estimates that this number will amount to $628 billion, however, it would likely approach $700 billion on a broader definition that includes spending on direct mail and directories around the world.

In spending, eMarketer estimates that US advertisers spent more than $10 billion on programmatic fees this year—almost 38% of their nonsocial programmatic display budgets. That was almost $2 billion more than they spent on the “ad tech tax” in 2018, but it does represent a slight decrease in the share of programmatic display budgets going to fees rather than working media.

Some key takeaways to consider in ad spending for 2020 and the next years:

  • Both TV and radio advertising revenues are expected to remain more or less at the same level through 2024 with minimal ups and downs along the way. Radio accounted for $31 billion in activity in 2019, and has generally been less robust than outdoor or television in recent years.
  • The time-spent streaming television, movies and other content is up 53% YoY with about two-thirds of people (63%) streaming ‘on demand’.
  • Japan, China, UK, and Germany rounded out the top five ad revenue markets in 2019.
  • Accounting for 52% of global advertising tracked here during 2020, Internet-related advertising is now unambiguously the most important medium globally, with $326 billion in ad revenue during 2020, up from $294 billion in 2019.
  • Television ad revenue declined by -3.6% in 2019 and is expected to do so for 2020 and further years, excluding U.S. political advertising.

- Landscape of the US advertising year

Tags: Ad spendingAdvertisingAdvertising revenueCEOCEO Northam

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