In a new report, GroupM projected that the advertising industry will surpass $1 trillion in total revenue for the first time this year and grow 7.7% to $1.1 trillion in 2025.
- More than half of that trillion dollars will go to the top five digital advertising companies: Google, Meta, ByteDance, Amazon, and Alibaba.
- Digital advertising is expected to account for 81.7% of revenue in 2025.
- Total TV revenue is only expected to grow 1.9% in 2025 to $169.1B.
- Streaming TV is expected to grow 12.9% next year, while linear TV declines 3.4%.
- However that doesn't mean linear TV is dying. Linear will represent 72.6% of total TV revenue in 2025 (roughly $122B).
- Global retail media ad revenue is expected to grow another 13.8% to reach $176.9B in 2025, following an 18.2% growth increase this year. Next year it is expected to surpass TV revenue for the first time ever.
GroupM’s report only touched on the possible effect of AI tools such as autonomous bots, but predicts that they will have a pronounced impact on the space. (It's hard to show advertising to consumers when bots are doing the shopping for them.)
Kate Scott-Dawkins, global president of business intelligence, noted that “Competition in the age of AI does require significant resources and scale,” and that “most folks will tell you that we’re still a little ways away from really being able to hand over the reins” to AI.