Advertising revenues set to hit $1tn in market dominated by technology companies

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Advertising revenues set to hit $1tn in market dominated by technology companies
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Omnicom and Interpublic in talks to merge in $30bn-plus deal to create the world’s largest advertising agency

WPP-owned media agency GroupM says the global advertising industry will surpass $1 trillion in revenue for the first time this year.The global advertising industry will surpass $1 trillion in revenue for the first time this year, with Google, Meta, ByteDance, Amazon and Alibaba expected to earn more than half the total in a market dominated by the technology sector.

The forecast comes as advertising giants Omnicom and Interpublic are in talks to merge in a deal worth more than $30 billion that would create the world’s largest advertising agency and reshape the global marketing industry. The combined US group would probably overtake France’s Publicis and WPP in the UK, which have been vying for the top spot for the biggest holding company in the industry based on net revenues.

Digital advertising is forecast to account for 73 per cent of total revenue by the end of next year – growing at 12.4 per cent globally in 2024 and 10 per cent in 2025 – or 82 per cent when including revenue from streaming and digital newspapers and magazines. The US is the largest advertising market, forecast to be worth about $379 billion in revenues in 2025, despite higher costs of borrowing and more cautious guidance from some retailers including electronics and home improvement stores.

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