Advertising - NAFTA | Statista Market Forecast

Ad spending in the Advertising market in NAFTA is forecasted to reach US$459.50bn in 2024.
The largest market within NAFTA is TV & Video Advertising with a market volume of US$155.00bn in 2024.
When compared globally, the United States will account for the majority of ad spending with US$425.90bn in 2024.
Within the Advertising market in NAFTA, 84% of total ad spending will come from digital sources in 2030.
The average ad spending per capita in the TV & Video Advertising market is expected to be US$303.80 in 2024.
Additionally, within the Advertising market, Advertising market of the 88% revenue will be generated through programmatic advertising in 2030.
In the NAFTA region, digital advertising is rapidly outpacing traditional media, with a shift towards personalized, data-driven campaigns for higher ROI.

Definition:
Advertising spending refers to expenses for promotional strategies with which brands or businesses purchase advertising space to promote products or services. The primary purposes of advertising include creating awareness, generating interest, and persuading consumers to take a particular action such as purchasing a product, visiting a website, or supporting brands. Advertisers use advertising to reach their target audience while media companies and advertising agencies use it as a source of income.

Structure:
The advertising spending consists of two main channels (traditional advertising and digital advertising). Traditional Advertising refers to above-the-line media that delivers commercial messages to broad audiences. This includes mass media such as traditional TV, traditional radio, printed newspapers, printed magazines, and traditional out-of-home (OOH) advertising formats. Digital Advertising uses the internet to deliver marketing messages to internet users in various forms. This includes digital video, search engine, social media, digital out-of-home, digital banner, digital audio, digital classifieds, and influencer advertising.

Additional information:
The market comprises advertising spending, share by advertising channel, users, average revenue per user, advertising share by industry, ad spending by medium, and digital ad spending share (programmatic and non-programmatic). The market only displays B2B spending and users for the above-mentioned channels. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions for each market can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Traditional advertising such as non-digital ads for TV and radio, as well as out-of-home advertising and print advertising
Digital advertising such as online ads for video, banner, audio, classifieds, and search engines, as well as digital out-of-home, social media, in-app, and connected TV advertising
Influencer advertising

Sponsorships/events and promotion
Product placement
Commission-based affiliate systems

The Advertising market in NAFTA has been experiencing significant growth over the past few years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this development. Customer preferences in the Advertising market in NAFTA have been shifting towards digital advertising. With the increasing use of smartphones and internet access, consumers are spending more time online, making digital platforms an attractive avenue for advertisers. This shift is driven by the convenience and accessibility of digital advertising, as well as its ability to reach a wider audience. Additionally, customers are increasingly seeking personalized and targeted advertisements, which digital platforms can provide through data analytics and targeted advertising. Trends in the Advertising market in NAFTA have also played a significant role in its development. One major trend is the rise of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad space in real-time, optimizing ad placements and targeting. This trend has been driven by advancements in technology and data analytics, which have made programmatic advertising more efficient and effective. Another trend is the growth of mobile advertising. As more consumers use smartphones and mobile devices, advertisers are investing in mobile advertising to reach their target audience. Mobile advertising offers opportunities for location-based targeting and interactive ad formats, making it a popular choice for advertisers. Local special circumstances in the Advertising market in NAFTA have also influenced its development. One such circumstance is the diversity of the market. The NAFTA region consists of three countries with distinct cultures, languages, and consumer behaviors. Advertisers need to tailor their campaigns to each country's preferences and local market conditions. This diversity presents both challenges and opportunities for advertisers, as they need to navigate different regulations, media landscapes, and consumer preferences. Underlying macroeconomic factors have also contributed to the growth of the Advertising market in NAFTA. Economic growth and stability in the region have increased consumer spending power and confidence, leading to higher advertising budgets. Additionally, the rise of e-commerce and digital platforms has created new opportunities for advertisers to reach consumers and drive sales. As the digital economy continues to grow, advertisers are investing more in digital advertising to capitalize on this trend. In conclusion, the Advertising market in NAFTA has experienced significant growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The shift towards digital advertising, the rise of programmatic advertising and mobile advertising, the diversity of the market, and economic growth in the region have all contributed to this development. As the market continues to evolve, advertisers will need to adapt to changing customer preferences and market dynamics to stay competitive.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. In some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

All advertising markets across the globe win, yet some win more than others. Ad spending worldwide reached almost 733 billion U.S. dollars in 2023, up less than three percent from the previous year. For comparison, in 2022, Switzerland ranked 20th among the leading economies by gross domestic product (GDP) with a result exceeding 800 billion dollars. Whereas global ad revenues concentrate in areas with either large populations or high purchase power – preferably both – their evolution depends on a larger set of indicators. It was forecast that, in 2024, South Asia will be the world's fastest-growing ad market, and the only out of nine with a double-digit increase rate: 12.1 percent. The second-placed region, comprising the United States and Canada, was projected to see its ad expenditure rise 7.6 percent.