Latest news with #KateScott-Dawkins
Miami Herald
2 days ago
- Business
- Miami Herald
Social media influencers are about to make a lot more money
After four generations and over 80 years of dominance, television may finally have been surpassed by the next big thing. Television viewership has shifted dramatically in recent years. Related: Paramount Global CEO lands in the middle of critical DC battle In the mid-2000s, smart TVs revolutionized the way Americans watched television. Before that, broadcast and cable accounted for 100% of viewership hours, but smart TVs feature apps that let viewers break away from broadcast schedules to stream their content whenever they like. According to Nielsen, streaming surpassed cable and broadcast viewing time for the first time in 2024, with over 40% of all TV viewing time spent on streaming. This is great for television itself, since there are now more shows to choose from than ever. But the business is hurting, because streaming allows viewers to minimize or altogether avoid advertisements. The shift is most prominent among young people. About 95% of 18- to 24-year-olds report watching streaming content weekly, with most going to Connected TV platforms like Hulu, Roku, and YouTube TV for their entertainment, according to a study this year from AmbioEdu. Ads are the lifeblood of the television entertainment industry. However, with people watching fewer commercial sports, advertisers have had to get creative with getting the word about their products out to the public. Many are turning to social media influencers to make up the difference. Image source: Arboleda/Getty Images It will be a challenging year for advertising salespeople, according to the latest forecast from advertising giant WPP Media. WPP Media is downgrading its projected ad revenue forecast for this year to 6% growth from its December forecast of 7.7%. The London-based company, a subsidiary of WPP (formerly known as GroupM), expects global ad revenue to reach $1.08 trillion this year, according to a report it published this week. But uncertainty around tariffs and geopolitics has advertisers spooked, and they expect to be a bit more conservative in the near term. Despite the outlook, advertisers will still spend over a trillion dollars this year, so how will they deploy their dollars? "It makes it somewhat difficult for advertisers, and it's why I've spoken about one of the big trends this year being a shift to more flexibility and agility, rather than a pullback," WPP Global President of Business Intelligence Kate Scott-Dawkins told the Hollywood Reporter. Related: Comcast spends big bucks to bring back an NBA legend This shift explains why the WPP Media report expects content creator-generated revenue to rise 20% from 2024 numbers to $184.9 billion. By 2030, it's expected to more than double to $376.6 billion. Digital advertising accounts for 73% of global ad revenue, or 81.6% when streaming TV and digital out of home ads are factored in. Meanwhile, television advertising is expected to grow by only 1% in 2025 to $162.5 billion. Streaming accounts for about $42 billion of that ad spend, but that number is expected to decline this year. The U.S. is currently engaged in a cold trade war with most of our major trade partners that could go hot at any second via a social media post from President Trump. That type of uncertainty has left advertisers tepid about spending their dollars. "After a broadly consistent trend of increasing economic openness and the expanding role of trade in economic growth over the last two centuries, the current disruption of global trade and economic deglobalization - shifting trading activity into aligned blocs - is a significant break," said the report, according to The Wall Street Journal. This break is expected to last for years if something doesn't change. "If the current trajectory continues, we do expect this to have a chilling effect on global advertising growth over the next five years." The firm lowered its compound annual growth rate forecast to 5.4% between 2025 and 2030, down from 6.4%. Related: HBO Max debacle leads to shareholder revolt The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Business Insider
2 days ago
- Business
- Business Insider
2025 is the year creator platforms will drive more ad revenue than old media, a new WPP forecast says
YouTube has blown past prestige streamers like Netflix and Disney+ to become the biggest TV company by viewership. And the traditional media business is about to get another wake-up call. This year, ad revenue from creator-driven platforms like YouTube, TikTok, and LinkedIn will exceed ad revenue driven by studios and media companies known for their professionally made content, WPP Media's new mid-year global ad forecast says. WPP Media — a part of ad holding company giant WPP — estimated that the ad revenue generated by those creator-driven platforms would just exceed the $235 billion driven by TV, audio, print, and cinema companies this year. That's a shift from 2019, when WPP estimated that professional content companies' share of content-based ad revenue topped 70%, with creator-driven platforms driving the rest, said Kate Scott-Dawkins, global president of Business Intelligence at WPP Media. WPP acknowledged that the definition of the creator economy can be blurry. It adjusted for the fact that some of the revenue generated by those creator-driven platforms comes from professional sources, as when companies like Disney and Comcast put clips on YouTube. WPP also categorized some of the biggest YouTubers, like MrBeast, who's made the jump to Amazon's Prime Video with a competition show, as professional content creators. While WPP's estimate includes TikTok, it excludes China-based companies. WPP separately calculated the revenue going to creators directly. The firm estimated revenue would total about $185 billion in 2025, up 20% from 2024, and double to more than $376 billion by 2030. WPP estimated that about 60% of that revenue comes in the form of brands and sponsorship deals, with the remainder from other sources, including the revenue split that platforms like YouTube share with creators. WPP said that sources of revenue for traditional media are largely declining. TV advertising is slated to grow just 1% this year, to $162.5 billion. A quarter of that comes from streaming, which is expected to grow rapidly, by 12.5% in 2025 and to about $72 billion by 2030. Audio (which includes video advertising formats attached to podcasts) will be flat at $26.5 billion this year. Print will continue its decline, shedding about 3% to $45.5 billion, according to WPP. Overall, WPP projects global advertising will grow 6% to $1.08 trillion in 2025, a downgrade from its December forecast of 7.7%. The figure excludes US political advertising.
Axios
2 days ago
- Business
- Axios
China now owns 20% of global ad market
China's booming digital economy has boosted its share of the global ad market, challenging the United States' long reign as the world's largest ad market. China's 20% share of the global ad market is now greater than the country's share of global GDP, according to WPP Media. Why it matters: Chinese ad sellers are finding enormous success selling ads to audiences globally, especially in the U.S. But U.S. tech giants are still largely banned from China. By the numbers: Nine of the world's top 25 ad sellers today are Chinese, including TikTok-parent ByteDance, Alibaba, Temu-owner PDD Holdings, Tencent, Baidu, Kuaishou, Meituan and Xiaomi, according to a new ad forecast from WPP Media. In 2025, the top five advertisers globally are all tech firms and two are Chinese: Google, Meta, ByteDance, Amazon and Alibaba. In 2011, the top five advertisers globally were mostly U.S. publishers: Google, Viacom and CBS, News Corp and Fox, Comcast and Disney. Catch up quick: The growth of China's economy and middle class over the past decade laid the foundation for the country's rapid ad expansion. But its mobile-first internet culture accelerated its dominance. Chinese tech firms have been innovating for the smartphone "to an even greater and faster degree than in other markets which went through a desktop phase first," said Kate Scott-Dawkins, the global president of business intelligence at WPP Media, who authored the report. Zoom in: Over the past several years, Chinese ad sellers have gained dominance by leaning into AI-fueled retail media innovation. This year, China's share of all retail media globally is 44.1%, driven by e-commerce giants like and Alibaba, per WPP Media. But rivals are gaining ground. By 2030, China's share of retail media ad dollars globally is expected to dip to less than 40% as the U.S., U.K. and others scale up, according to Scott-Dawkins. Zoom out: China's ascent in the global advertising hierarchy mirrors a broader shift in tech and economic influence. Chinese platforms are shaping ad innovation with AI-driven commerce and mobile-first experiences. Social and entertainment apps like TikTok have supercharged their ad businesses by expanding their live shopping and e-commerce features. Chinese platforms like TikTok and Temu are rapidly scaling in Western markets. But U.S. tech firms like Google and Meta remain largely blocked from operating in China, limiting the opportunity for reciprocal growth.
