Global advertising revenue to hit US$1 trillion in 2026: Report
27 August 2024: Despite economic headwinds, technological disruption and increased geographic and industry competition, the global entertainment & media (E&M) industry has continued to grow in 2023, with total revenues rising 5% in 2023 to US$2.8 trillion – outpacing overall economic growth cited by IMF according to PwC’s Global Entertainment & Media Outlook 2024-28 report published recently.
The outlook, which covers 11 revenue segments across 53 countries and territories, finds that global E&M revenues are projected to hit $3.4 trillion in 2028, growing at a 3.9% compound annual growth rate (CAGR).
Most notably, advertising revenue is set to hit $1 trillion in 2026 and is projected to account for more than half (55%) of total E&M industry revenue growth over the next five years.
Looking across the globe, the US remains the world’s largest consumer spending and advertising market (4.3% CAGR to 2028), representing more than one-third of global spending in 2023.[3] However, other large markets including China (7.1%) and India (8.3%), and less mature markets such as Indonesia (8.5%) and Nigeria (10.1%), are growing more quickly.
Werner Ballhaus, Global Entertainment & Media Leader, PwC Germany, said “As global entertainment & media industry continues to grow, market players face both risks and opportunities. Shifts in consumer preferences, and uncertainty around the continued impact of digital transformation and new and emerging technology such as Generative AI, are inspiring a wave of business model reinvention. If market players are to gain their share of the growing revenue pools we identify, they will have to reimagine how their company creates, delivers, and captures value, leveraging the growth of advertising while also harnessing the powerful opportunity presented by AI. As consumers increasingly consume content online, companies will also need to diversify their product-offerings and continue to connect with consumers on the platforms where they spend more of their time.”
Global advertising revenue to hit $1 trillion in 2026
Global advertising revenue is expected to grow at a 6.7% compound annual growth rate (CAGR) through 2028, ahead of the other two broad E&M segments analysed: connectivity (2.9%) and consumer (2.2%). All the while, total advertising revenue is to hit $1 trillion in 2026 (while 2028 revenues will hit double the revenues of 2020). Advertising is projected to account for 55% of the total E&M industry’s growth over the coming five years based on the three broad E&M segments analysed.
Internet advertising is the largest and one of the fastest-growing components of the advertising industry. It grew 10.1% in 2023, adding $52.5 billion in new revenues, and is projected to rise at a 9.5% CAGR through 2028, when it will account for 77.1% of total ad spending.
www.pwc.com/outlook
