#2 - DIGITAL ADVERTISING
Alphabet and Meta Platforms rode a digital advertising market that grew 16.4% per year from 2010 to 2024, but will digital advertising soon become a post-growth market?
Global digital advertising has been in long-term structural growth:
- Total spend increasing from $66.2 billion in 2010 to $552.6 billion in 2024
- Digital share of total advertising spend rising from 16.9% in 2010 to 65.1% in 2024
- Average annual growth at a whopping 16.4% from 2010 to 2024
Powered by the internet and mobile mega-trends, digital advertising has been taking share hand over fist from other advertising channels like print, television and radio.
The big question for current and future shareholders in companies like Alphabet (Google) and Meta Platforms (Facebook and Instagram) is: what share of advertising expenditure will digital advertising command in the future, and what this means for growth rates?
To help investors form their own opinion on this question, we created a model to forecast the growth rate in digital advertising out to 2040.
Here’s a link to the model in Google Sheets:
