It’s an ad, ad, ad, ad world

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In recent years, advertising—or at least the advertising that baAnd yet, in many ways, the advertising business is thriving and ascendant. I’m speaking about the manifold efforts Just look at the numbers. Worldwide advertising revenues fell nearly 7% in 2020, as marketers around the world put the brakes on spending amid the COVID-19 pandemic. But in 2021, advertising grew a stunning 22.6%. And from 2022 through 2026, advertising is set to grow at a more rapid pace than both the entertainment and media (EM) industry as a whole and the global economy—at a 6.6% compound annual growth rate. This trajectory means that advertising will be a US$1 trillion market

That’s another way of saying that our world at large, and the EM industry in particular, is becoming more advertising-centric. The growth is largely fed Advertising is set to grow at a more rapid pace than both the entertainment and media industry as a whole and the global economy, becoming a US$1 trillion market Why is this happening? At root, the answer is simple: more consumers are spending more of their time in digital environments, where they can be reached But there are even larger forces at work. We like to think that human beings, as they grow more media-savvy and cynical, will become more resistant to being pitched and sold to at all times. The reality is that we may have a greater tolerance of—and interest in—advertising than critics like to think. And, at a time when some streaming companies that relied solely on subscriber revenues are bumping into growth limitations, adding advertising revenue is now seen as a strategic imperative.

All of this means a shift, over time, in influence and power. The Outlook divides spending into three broad categories: consumer spending (people buying books, cable subscriptions, etc.), internet access (people paying for online access and data), and advertising. In 2017, consumer spending dominated, accounting for 40% of total industry revenue, while advertising accounted for only 29% of total revenues, behind internet access. In 2021, advertising surpassed internet access. And <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" data-src="/media/image/44490413_ex2.gif" class="awcLazy" width="1800" height="844" border="0" alt="A chart showing the share of entertainment and media spending Mad Men may be a thing of the past, but the inheritors of that world may soon have more power and influence than ever.