2024 is Expected to See Global Ad Spending Soar to $936 Billion
$936 B
Global ad spending is projected to reach $936 billion in 2024, with a forecasted figure of $889 billion for 2023, only 0.1 percentage points lower than the previous prediction in December 2022, according to GroupM. Despite concerns about economic uncertainty, stable growth is expected in the next five years, driven by innovations in AI and digitalization. Another forecast by Magna indicates a potential slowdown in ad growth, with global advertising spending, excluding cyclical events, expected to grow 5.8% in 2024, down from the anticipated 6.5% in 2023.
6%
Television advertising, often undervalued compared to digital counterparts, is experiencing a decline in marketer interest, with only 6% planning to increase TV spending in 2024, according to Kantar. Despite dropping from the third to the twelfth preferred media channel among marketers in 2022, effectiveness expert Peter Field argues that TV ads, including YouTube's unskippable video ads, can match in building attention, emphasizing the importance of recognizing television's impact in marketing strategies.
75%
Gen Z women make up 75% of TikTok users compared to 62% of men, are shaping spending trends on the platform, according to a Morning Consult report. As the app becomes a focal point for online trends, particularly among women in their 20s, it also poses financial risks due to increased usage.
17%
Spotify announced layoff of 17% which is around 1,500 jobs. Now the platform aimed to "rightsize" costs in response to what CEO Daniel Ek termed a new economic reality, despite reporting a profitable third quarter of $70.7 million attributed to reduced spending on marketing and personnel.
4%
Retailers are approaching their critical year-end sales period with a revised inventory strategy, focusing on streamlined supply chains and targeted product offerings rather than excess merchandise. Despite an anticipated slower growth in holiday sales, retailers aim to keep inventory fresh and aligned with consumer preferences in the face of uneven retail spending amid high inflation. The National Retail Federation forecasts U.S. holiday sales to increase by 3% to 4%, reaching $957.3 billion to $966.6 billion in 2023, in contrast to the 5.3% growth observed last year at $936.3 billion.
$1 B
Elon Musk's AI startup, X.AI, the artificial intelligence startup submitted SEC to raise up to $1 billion in an equity offering. Having garnered nearly $135 million from four investors, with the first sale on Nov. 29. Last month, X.AI introduced the Grok chatbot, claiming real-time internet knowledge after two months of training.
$71M
In Q3, Victoria’s Secret reported a 4% decline in net sales to $1.27 billion, with a 7% decrease in comparable sales, particularly in North American intimates sales. Despite an expanded "Store of the Future" fleet, the company experienced a $70.7 million loss, contrasting with a $22.2 million net income from the previous year.