In 2024 the advertising market reached crazy figures

In 2024, the global advertising industry appears to have achieved an unprecedented milestone for the first time in its history: surpassing a total revenue of one trillion dollars—a figure with 12 zeros. It is incredibly challenging to grasp such a vast amount concretely. On TikTok, there are numerous videos explaining the magnitude of such figures, which people often underestimate. A common example relates to the passage of time: one million seconds equals 12 days; one billion seconds are nearly 32 years; one trillion seconds correspond to over 31,000 years. Another method used is to calculate how long it would take to reach such figures if earning a specific amount daily: earning 5,000 euros a day would make someone a millionaire in about seven months; similarly, becoming a billionaire would take five centuries, while reaching one trillion would require over 540,000 years. Once the true scale of one trillion is understood, the projected global advertising industry revenue for 2024 appears genuinely enormous.

It is even more surprising to learn that most of these earnings are concentrated in relatively few companies. According to estimates by GroupM, one of the leading international advertising investment management agencies, the sector's growth has been driven by the results of major tech companies, including Alphabet (the parent company of Google), Amazon, Meta, Alibaba, and China’s ByteDance (owner of TikTok), which together accounted for over half of the total earnings. For this reason, many people—especially online—question whether it is possible to accumulate such immense wealth ethically, especially within just one year.

The Advertising Market Between 2024 and 2025

As reported by the Financial Times, GroupM estimates that global advertising revenues in 2024 increased by approximately 9% compared to the previous year, exceeding analysts' expectations, despite less-than-favorable economic conditions. Furthermore, revenues are projected to increase by another 7% in 2025, but again, most of the earnings will be concentrated among a few key players. GroupM's report highlights that the application of advanced technological solutions, including the use of artificial intelligence systems, will be crucial in sustaining the sector's growth. Notably, innovation is expected to partially compensate for the end of a prolonged period of near-zero interest rates, which fueled the advertising sector’s expansion after the 2008 financial crisis and during the pandemic.

When discussing inflation, the concrete effects of this phenomenon are often overlooked, particularly in markets like advertising, which are highly influenced by external socioeconomic factors. Suppose banks' lending rates to their clients, including large corporations, increase. In that case, the consequences tend to cascade across all levels of the economy, often impacting the lives and consumption of people across entire continents. Recently, the Federal Reserve, the central bank of the United States, once again lowered its reference interest rates—which serve as a base for determining loan, mortgage, and savings rates—significantly impacting various economic sectors, including credit, investment, and consumption markets. This likely means that the advertising market will find fertile ground for further growth. The Federal Reserve's decision was highly anticipated, especially as the U.S. economy is performing well: labor market and consumption data are positive, benefiting many industries. It is no coincidence that the U.S. has long been the world’s largest advertising market. However, China is also thriving. The country's total advertising revenues in 2024 are expected to grow by about 13%, surpassing 200 billion dollars—four times the revenues of the United Kingdom, Europe’s largest advertising market. Among the various forms of advertising, digital advertising constituted the primary source of revenue for the sector in 2024, while traditional advertising channels, such as linear television, print, and radio, continue to record losses.