Advertising is a bellwether industry which means that it is at the forefront of the economy, and just as consumers are having to change their behaviour in response to changing expectations about the future, brands are also starting to change their behaviour.
Advertising is still growing, but it is slowing, with money shifting into digital, as brands look towards effectiveness and measurability…
dentsu Ad Spend Report – December 2022
The latest dentsu ad spend forecasts show global growth of 8.0% in 2022, with the advertising market reaching US$713.6billion, up US$53.0billion, building on record growth in 2021, which was 19.8% higher than 2020 as activity returned with the easing of Covid-19 restrictions.
Looking into the future, we expect growth of 3.8% in 2023, with an acceleration to 4.8% growth is 2024, as the global economy recovers and the advertising market is helped by major events like the Paris Olympics in Paralympic Games.
The key takeaways
There are several lessons we can take from history. First is that economic downturns are times of great innovation, especially in media. Previous downturns have greatly accelerated the adoption of radio, TV and social media, and this is likely to also drive media use.
Second, brands that weather downturns best are the ones that keep advertising, growing their market share at the expense of more cautious rivals . Finally, reduced competition for media inventory may reduce prices and allow smart brands to get very good value from their partners.
Download now the dentsu Ad Spend Report for December 2022.