The amount spent on political advertisements is expected to grow to about $16 billion next year, an increase of more than 30% compared to the 2020 presidential election, according to a new estimate from leading ad agency GroupM, Axios reported.
GroupM, one of the largest paid advertising agencies in the world, estimated that the U.S. political ad market on its own will surpass Australia to become the 10th largest ad market in the world next year.
Axios noted that this estimation is far higher than other projections made about the political ad market. AdImpact estimated that about $10.2 billion will be spent on political ads in the U.S. next year, up from $8.9 billion in 2022.
GroupM's report also noted the declining viewership of linear television in favor of digital sources such as TikTok and YouTube.
"We seem to have reached a significant inflection point in the realization that linear TV is well and truly in decline, growth in advertising is dominated by a handful of large media and commerce companies, and the economics of this industry are predicated on this new world order, where large advertisers and agencies make up a minority of revenue for some of their largest partners," the report read, according to The Hollywood Reporter.
Theodore Bunker ✉
Theodore Bunker, a Newsmax writer, has more than a decade covering news, media, and politics.
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