Across the Atlantic, WARC said Europe was expecting a rise of 0.6% in 2023 and 3.6% in 2024, while the Middle East is expected to see ad budgets upped by 6.2% in 2024. In South Asia, a 12.1% 2024 bump is anticipated, and Southeast Asia will grow by 4.6% in 2024.
Latin America’s ad spend will rise 0.8% in 2023 and 5.2% in 2024. Africa was the only continent set to be down 11.6% this year, with growth returning in 2024.
So where are CMOs spending?
Digital advertising–including display, video, search and social—are dominating CMOs global media plans, according to several of the reports published.
Five major tech firms–Alibaba, Alphabet, Amazon, TikTok owner ByteDance and Meta—will together rake in over half (51.9% of global advertising spend this year). In the process, the companies will see revenues rise 9.1%.
Unsurprisingly, increasingly advanced retail media networks will capture a larger proportion of budgets in 2024.
WARC pits that retail media spending will be up 10.2% year on year, forecast to rise to $141.7 billion in 2024, and on track to overtake linear TV as the third-largest channel by spend within a few years.
“To be sure, Amazon is by far the biggest player in this space, but they are far from the only beneficiaries of marketers shifting spending in this direction,” said Madison and Wall’s Wieser, agreeing it was a “stand out sector” and pointing to companies such as Walmart, Instacart, Ebay, Uber, Criteo, Booking.com and Expedia.
While this is an exciting new space, Dominic Charles, managing director of audience intelligence and marketing science at Wavemaker U.K., urged CMOs not to get distracted by bells and whistles.
“Whilst better than anticipated growth in overall advertising spend is an encouraging sign, these figures still paint a picture of caution in how advertisers are prioritizing their investment,” he observed.
Charles noted how it would be easy for brands to dust off their 2008 recession playbooks, but cautioned that a short-term digital bonanza would carry consequences.
“Channels like TV, radio and newsbrands have been proven to be as, if not more, effective at driving ‘performance’ as digital channels and have the advantage of creating significantly stronger long-term effects to boot,” he argued.
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