Advertising

The outlook for the advertising industry varies by sector. Some advertising sectors will have more growth, such as in online and mobile advertising, whereas other sectors will have slow or no growth, such as radio, magazine, and newspaper advertising. PricewaterhouseCoopers (PwC) estimates advertising industry growth by sector through 2026 in its “Global Entertainment and Media Outlook” report.

The coronavirus pandemic fundamentally altered the course of the advertising industry in 2020 and 2021. Many advertising firms paused their advertising spend and others adjusted their content to reflect solidarity in the time of the pandemic and reaffirm their clients’ core missions. Coronavirus spurred the advertising industry to seek new ways to forge bonds with consumers whose lives had changed dramatically due to pandemic restrictions and concerns.

The post-pandemic recovery is still in progress, businesses are recovering, and the economy is slowly rebounding. Mobile device usage grew during the pandemic and continues to gain in popularity. According to the PwC report, mobile Internet advertising is expected to continue growing in the next few years, with outstream video Internet advertising (which is mobile ads within non-video-based editorial content) experiencing the most growth. The report explains that “E-commerce will likely continue to expand [I]nternet advertising as retailers launch services to sell ad space in their own digital platforms. Shoppable ads also unlock new buying motions and are expected to add growth.” Another factor contributing to Internet advertising growth is the rise in TV cord-cutting. Internet advertising overall in the U.S. is projected to grow by an annual average rate of 6.5 percent through 2026.

Video streaming is another sector of the advertising industry that is growing at a fast rate. PwC predicts that the U.S. video streaming market will experience nearly 8 percent compound annual growth through 2026. This includes the following video on demand categories: subscription, advertised, traditional, and free ad-supported TV. PwC highlighted that the free ad-supported TV market has been growing at a particularly quick pace in recent years (25 percent average annual growth from 2021 into 2023), due to heightened demand for content at low cost. U.S.-based companies will also have “significant” advertising opportunities in the Latin American streaming market, which is expected to have tremendous growth in the next few years.

The TV advertising market experienced slow growth into 2022, but has since been on the upswing and the outlook going forward is bright. Growth in this sector is mainly due to the increase in purchases of smart TVs, as well as the rise of smart TV installations in commercial buildings, malls, showrooms, and other facilities. The research firm IMARC Group predicts annual growth in the global TV advertising market of nearly 4 percent through 2028, to reach nearly $286 billion. According to IMARC, “…the increasing purchases of smart TVs integrated with numerous advanced features along with organic light emitting diode display is propelling the growth of the market. In addition, the growing utilization of programmatic advertising to publish numerous ads on a wide variety of platforms and expand the reach of the ads is offering a favorable market outlook.” More people and businesses will be using smart TVs to stream videos and movies, watch live matches, award shows, and learn about business products and services.

The print advertising sector includes advertisement revenues from print newspapers and consumer magazines, not digital editions. Daily, weekly, and free daily print-edition newspapers and consumer-focused magazines are included in this sector. In 2023, Statista reported that print advertising spending in the U.S. was expected to reach more than $11.3 billion, with magazine advertising being the largest segment (reaching more than $5.8 billion). The U.S. was also expected to generate the most advertising spending in 2023, compared to other countries.

Overall, the global magazine advertising market is projected to decline at an annual rate of 3.7 percent through 2028, according to ReportLinker. Magazine advertising declined during the pandemic and since then, digital advertising, such as social media ads, has become a more popular means of attracting and engaging consumers. Digital ads can be created and shared quickly, whereas magazine ads “suffer from being trapped into a design that was made months before it will be published due to the length of time it takes to prepare a magazine advertis[ement] and the lengthy lead periods needed to acquire time or space. Digital campaigns may be put into action considerably more swiftly and, if necessary, changed as they go. These and other issues are causing magazine advertising to be increasingly replaced by digital advertising methods. As a result, market growth may slow down in the years to come.”

A decrease in radio advertising spending on traditional channels, such as radio commercials to promote companies’ products and services, has been a trend that is expected to continue in the coming years. Slow growth is predicted for the global traditional radio advertising market, at an annual rate of less than 2 percent through 2028. The largest area of growth will be in the satellite radio advertising sector (2.4 percent annual growth through 2028), as more companies spend on radio advertising to raise awareness of their brands and promote their products.

The employment outlook in the advertising industry shows some growth in most sectors. The Bureau of Labor Statistics predicts 10 percent employment growth for advertising, promotions, and marketing managers through 2031, which is faster than the average for all occupations. Employment growth will vary depending upon the occupation and the industry sector. There were about 347,000 advertising, promotions, and marketing managers employed in the United States in 2021, and that number will grow to 380,700 by 2031. This growth is predicted due to media companies’ continued reliance on advertising revenue for profitability, as well as the need to replace workers who leave the field or retire. The BLS predicts that digital media will account for much of the growth in advertising, and in particular digital ads that are made for cell phones, tablet-style computers, and online radio stations. Advertising and promotions managers will also be needed to work on digital media campaigns that are geared to customers through Web sites, social media, or live chats.

Employment of advertising sales agents is expected to decline by 8 percent through 2031, according to the BLS. There were 100,700 advertising sales agents employed in the United States in 2021, already a drop from the 147,900 employed in 2018; and that number is expected to drop to 92,700 by 2031. The decline in newspaper print advertising and the growth of digital advertisements have reduced the need for advertising sales agents. Digital advertisements can be sold and placed through software applications and search engine programs. Advertising sales agents will have the best odds of finding work at Internet-focused companies. Competition for advertising sales agents jobs will be keen, and those with sales experience, a bachelor’s degree, and knowledge of digital advertising methods, including search engine optimization, will have an edge in the job market.

Art directors will have average employment growth, about 4 percent, through 2031. In 2021, there were 121,500 art directors employed in the United States, and about 5,700 new jobs will be added to the field by 2031. Approximately 11 percent of art directors are employed in advertising, public relations, and related services. While traditional print publications will have fewer jobs for art directors, Internet-based publications and digital magazines will have greater need for art directors to help design Web and mobile platforms and to oversee graphic designers and others involved in design and layout.

Job growth for graphic artists and designers will have slower-than-average employment growth (3 percent) through 2031. There were 265,000 graphic designers employed in the United Stated in 2021, and a total of 271,800 will be employed in this field by 2031. About 9 percent of graphic designers work in advertising and related services. Companies will continue to need graphic designers’ services to help advertise and market their services through websites and social media sites.

The BLS predicts that employment opportunities for writers and authors working in media and communications, including advertising copywriters, will grow at an average rate, 4 percent, through 2031. Writers who are well versed in online and social media and comfortable working with a variety of digital and electronic tools will have better chances of landing jobs.