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Visualizing the Evolution of Global Advertising Spend (1980-2020)

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Visualizing the Evolution of Global Advertising Spend (1980-2020)

The Evolution of Global Advertising Spend (1980-2020)

Marketers may still “sell the sizzle” and not the steak, but shifts in the media landscape and consumer behavior mean that advertisers must constantly adapt their media strategies.

In the above infographic from Raconteur, we can take a closer look at how global advertising spend has evolved over recent decades across the media sphere.

The Media Landscape Shapes the Ad World

In advertising, dollars go where the eyeballs are.

Recently, all eyes have been on the digital realm—a trend that coincided with the disastrous fall of the print industry. As people mass-migrated to digital platforms in the 2010s, marketers were hot on their heels, and the fall of print media began.

In 2014, TV ad spend met a similar fate, peaking at nearly $250 billion. However, despite its rather sharp decline, TV still remains the largest in terms of global advertising spending.

The demise of the newspaper is shown dramatically in the above graphic, beginning in 2007 before the financial crisis, and correlating with the ascent of search engine ad spend. Peaking at $125 billion before the social media boom, newspaper advertising has never recovered.

Winners in a Digital World

In less than five years, internet ad spend nearly doubled: $299 billion was spent on global internet advertising in 2019 compared to $156 billion in 2015.

Reaching $160 billion in one year, digital display advertising—a broad category including banner ads, rich media, advertorial and sponsorship, online video and social media—accounted for the largest global ad expenditure in 2019.

Comparing all digital display ad spend in isolation with TV and newspaper, we can see the continued significance of the shift to digital, and how it’s projected to continue.

global advertising spend

Looking at the main visualization, it’s clear that budgets have shifted, with digital channels now accounting for more than half of total advertising spend.

Although digital spending is up across the board, search engine ad spend began to plateau in the late 2010s, while social and ecommerce mediums both continue to rise. Impressively, between 2012 to 2020, the percentage of U.S. senior marketing budgets allocated to social media more than doubled, ballooning from almost 9% to nearly 21%.

“People share, read and generally engage more with any type of content when it’s surfaced through friends and people they know and trust”

– Malorie Lucich, Head of Product & Tech Communications, Pinterest

Advertisers aren’t the only ones spending money online. More than $183 billion is expected to be spent online by consumers as a result of the 2020 pandemic.

Screen Life: Time is Ad Money

It’s not only that people have shifted their focus from analog to digital. They are also spending many of their waking hours in front of a screen.

  • Adults in the U.S. spend an average of 11 hours a day in front of a screen, and the ad dollars that vie for our digital attention are also rising.
  • Globally, the daily average of time spent online was almost 7 hours during the pandemic, up from 3.2 hours at the beginning of lockdowns.

As a result of COVID-19 lifestyle shifts, time spent watching digital video is expected to increase. According to eMarketer, digital video spiked among UK adults during the pandemic—to 2.75 hours, and almost by 30 minutes daily in total video and TV screen time.

Smartphone Boom: From Big Screens to Small

Social media and digital ad spend also corresponds with a steady uptick in global smartphone ownership and usage.

In February of 2019, for instance, 81% of U.S. residents owned a smartphone. By 2024, it’s expected that 291 million Americans (almost 90%) will be using a smartphone.

us smartphone users

In China, smartphone usage has almost doubled in 5 years—and is predicted to surpass 3.4 hours a day by 2022. Statista estimates there will be 1.13 billion smartphone users in China by 2025, making up nearly 14% of the world’s population by 2025.

As billions of users spend hundreds of hours with their small screens every year, it’s possible that mobile-based ad spend—including uber-popular apps like TikTok—will become even more commonplace.

The Digital Future is Now

As a result of the pandemic, it is projected that global advertising spending could fall by 8.1% this year. However, 53% of all global ad spend is expected to flow online. And the rise of search, social media, video, ecommerce—in contrast to TV and print—becomes clearer.

Although search ad spend recently plateaued, its rise over the last decade has been dramatic. With digital content consumption doubling since the pandemic began, the growth of social, e-commerce, and search ad spend are likely to continue.

If these trajectories are any indication, advertising budgets will only be getting more digital.

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Which Streaming Service Has the Most Subscriptions?

From Netflix and Disney+ to Spotify and Apple Music, we rank the streaming services with the most monthly paid subscriptions.

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Which Streaming Service Has The Most Subscriptions?

Many companies have launched a streaming service over the past few years, trying to capitalize on the digital media shift and launching the so-called “streaming wars.”

After Netflix grew from a small DVD-rental company to a household name, every media company from Disney to Apple saw recurring revenues ripe for the taking. Likewise, the audio industry has long-since accepted Spotify’s rise to prominence, as streaming has become the de facto method of consumption for many.

But it was actually the unexpected COVID-19 pandemic that solidified the foothold of digital streaming, with subscription services seeing massive growth over the last year. Although it was expected that many new services would flounder along the way, media subscription services saw wide scale growth and adoption almost across the board.

We’ve taken the video, audio, and news subscription services with 5+ million subscribers to see who came out on top—and who has grown the most quickly—over the past year. Data comes from the FIPP media association as well as individual company reports.

Streaming Service Giants: Netflix and Amazon

The top of the streaming giant pantheon highlights two staples of business: the first-mover advantage and the power of conglomeration.

With 200+ million global subscribers, Netflix has capitalized on its position as the first and primary name in digital video streaming. Though its consumer base in the Americas has begun to plateau, the company’s growth in reach (190+ countries) and content (70+ original movies slated for 2021) has put it more than 50 million subscribers ahead of its closest competition.

The story is the same in the audio market, where Spotify’s 144 million subscriber base is more than double that of Apple Music, the next closest competitor with 68 million subscribers.

Meanwhile, Amazon’s position as the second most popular video streaming service with 150 million subscribers might be surprising. However, Prime Video subscriptions are included with membership to Amazon Prime, which saw massive growth in usage during the pandemic.

ServiceTypeSubscribers (Q4 2020)
NetflixVideo203.7M
Amazon Prime VideoVideo150.0M
SpotifyAudio144.0M
Tencent VideoVideo120.0M
iQIYIVideo119.0M
Disney+Video94.9M
YoukuVideo90.0M
Apple MusicAudio68.0M
Amazon Prime MusicAudio55.0M
Tencent Music (Group)Audio51.7M
ViuVideo41.4M
Alt BalajiVideo40M
HuluVideo38.8M
Eros NowVideo36.2M
Sirius XmAudio34.4M
YouTube PremiumVideo/Audio30M
Disney+ HotstarVideo18.5M
Paramount+Video17.9M
HBO MaxVideo17.2M
Starz/StarzPlay/PantayaVideo13.7M
ESPN+Video11.5M
Apple TV+Video10M
DAZNVideo8M
DeezerAudio7M
PandoraAudio6.3M
New York TimesNews6.1M

Another standout is the number of large streaming services based in Asia. China-based Tencent Video (also known as WeTV) and Baidu’s iQIYI streaming services both crossed 100 million paid subscribers, with Alibaba’s Youku not far behind with 90 million.

Disney Leads in Streaming Growth

But perhaps most notable of all is Disney’s rapid ascension to the upper echelons of streaming service giants.

Despite Disney+ launching in late 2019 with a somewhat lackluster content library (only one original series with one episode at launch), it has quickly rocketed both in terms of content and its subscriber base. With almost 95 million subscribers, it has amassed more subscribers in just over one year than Disney expected it could reach by 2024.

ServiceTypePercentage Growth (2019)
Disney+VideoNew
Apple TV+VideoNew
Disney+ HotstarVideo516.7%
ESPN+Video475.0%
Starz/StarzPlay/PantayaVideo211.4%
Paramount+Video123.8%
HBO MaxVideo115.0%
Amazon Prime VideoVideo100.0%
Alt BalajiVideo100.0%
YouTube PremiumVideo/Audio100.0%
DAZNVideo100.0%
Eros NowVideo92.6%
Amazon Prime MusicAudio71.9%
Tencent Music (Group)Audio66.8%
New York TimesNews60.5%
SpotifyAudio44.0%
HuluVideo38.6%
ViuVideo38.0%
NetflixVideo34.4%
Tencent VideoVideo27.7%
iQiyiVideo19.0%
Sirius XmAudio17.4%
Apple MusicAudio13.3%
YoukuVideo9.6%
PandoraAudio1.6%
DeezerAudio0%

The Disney+ wave also spurred growth in partner streaming services like Hotstar and ESPN+, while other services with smaller subscriber bases saw large growth rates thanks to the COVID-19 pandemic.

The lingering question is how the landscape will look when the pandemic starts to wind down, and when all the new players are accounted for. NBCUniversal’s Peacock, for example, has reached over 30 million subscribers as of January 2021, but the company hasn’t yet disclosed how many are paid subscribers.

Likewise, competitors are investing in content libraries to try and make up ground on Netflix and Disney. HBO Max is slated to start launching internationally in June 2021, and ViacomCBS rebranded and expanded CBS All Access into Paramount+.

And international growth is vital. Three of the top six video streaming services by subscribers are based in China, while Indian services Hotstar, ALTBalaji, and Eros Now all saw surges in subscriber bases, with more room left to grow.

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How Do Esports Companies Compare with Sports Teams?

With some esports companies more valuable than traditional sports teams, we visualize esports vs sports in franchise value.

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How Do Esports Companies Compare with Sports Teams?

Are esports on the same level as “real” sports? These comparisons range from tricky to subjective, but the monetary value of companies speak for themselves.

The world’s largest esports companies have definitely risen to the occasion. Valued at almost half-a-billion dollars, they’ve started to pass some sports franchises in value.

In the above graphic, we compare Forbes’ valuation of the top 10 esports companies in 2020 against median franchises in the “Big Four” major leagues (NFL, MLB, NBA, and NHL). Despite competitive gaming’s rapid growth, there’s still a long way left to go.

Esports Impress but NFL Teams Reign Supreme

The world’s top esports companies have grown quickly, and impressively.

As of 2018, there was only one esports company worth more than $300 million in valuation. By 2020, four of the top 10 were valued at more than $300 million.

Esports CompanyGames with FranchisesValue (2020)
TSMLeague of Legends$410M
Cloud9League of Legends, Overwatch$350M
Team LiquidLeague of Legends$310M
FaZe ClanCall of Duty$305M
100 ThievesLeague of Legends, Call of Duty$190M
Gen.GLeague of Legends, Overwatch, NBA 2K$185M
Enthusiast GamingCall of Duty, Overwatch$180M
G2 EsportsLeague of Legends$175M
NRG EsportsCall of Duty, Overwatch$155M
T1League of Legends$150M

When compared to traditional sports valuations, esports companies have already reached major league hockey status.

TSM, the world’s most valuable esports company in 2020, has a higher valuation than five NHL franchises. In fact, four esports companies were estimated to be more valuable than two NHL franchises, the Florida Panthers and Arizona Coyotes.

But other sports leagues are further away. While the median value of an NHL franchise in 2020 was $520 million, the MLB, NBA, and NFL all saw median values of over $1.6 billion.

Esports vs. Sports FranchisesLowest Valued TeamHighest Valued TeamMedian
NFL$2.0B$5.7B$3.0B
NBA$1.3B$4.6B$1.8B
MLB$980M$5.0B$1.6B
NHL$285M$1.6B$520M
Esports (Top 10)$150M$410M$188M

Differences in Esports vs Sports Structures and Growth

Try as we might to make a clean apples-to-apples comparison between esports and traditional sports teams, there are significant differences in the business models to consider.

For starters, major esports companies own multiple franchises and non-franchise teams across many games. Cloud9 owns both the eponymous Cloud9 League of Legends franchise and the London Spitfire Overwatch franchise, for example, as well as non-franchise teams in Halo, Counter Strike: Global Offensive, Fortnite, and other games.

The revenue streams for esports companies are also extremely varied. Companies like TSM, 100 Thieves, FaZe Clan and Enthusiast Gaming made 50% or more of their revenue from outside of esports, having instead expanded into diverse companies with an equal focus on content creation and apps.

But it’s this greater ability to diversify, and the still-increasing size of esports fandom, that continues to grow esports valuations. In fact, TSM’s estimated 2020 revenue of $45 million is less than half of the Arizona Coyotes’ estimated revenue of $95 million, despite a $100+ million valuation difference in favor of TSM.

That’s why the continued maturation of esports is only going to make traditional sports comparisons easier, and closer. Instead of having to pit companies against franchises, direct league-to-league comparisons will be possible, and the differences will likely shrink from billions to millions.

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