Dentsu predicts continued recovery in ad spend despite uncertainty
By our News Team | 2022
Media price inflation, soccer World Cup advertising and important international elections will boost spending on ads.
Advertising investment is forecast to grow by 8.7% globally in 2022, according to the latest Dentsu Global Ad Spend Forecast. The twice-yearly report combines data from around 60 international markets and predicts that US$738.5-billion will be spent globally in its July updated forecast.
The revised forecast of media investment takes into account escalating media price inflation, geopolitical tension, upcoming key elections, and the 2022 FIFA World Cup in Qatar later this year. Due to continued uncertainty, the current and historical comparison data has also been adjusted to remove Russian investment from the latest forecast.
Image by Mudassar Iqbal from Pixabay
Dentsu’s latest predictions point to a continued recovery despite another year of economic uncertainty, with the global 2022 ad spend figure being based on an adjusted growth forecast to 8.7%.
Looking ahead, the multinational media company expects the 2023 global advertising market to increase by 5.4%, to reach US$778.6-billion. This will be followed by a further 5.1% increase in ad spend in 2024.
“Even with everything which has happened in recent months, not least the protracted war in Ukraine and its international repercussions, the advertising recovery remains strong on a global scale,” said Peter Huijboom, Global CEO, Media and Global Clients at Dentsu International.
“And, despite factors such as inflation putting pressure on household budgets, combined with 2021 being a tough comparative year, we have only marginally revised down our 2022 growth forecast by just 0.4 percentage points.”
He continued: “Despite global economic uncertainty, brands are continuing to prioritise their spend in channels which will give them both the digital flexibility and return they seek.”
Boosted by the soccer World Cup – which will cross over with the traditionally busy end-of-year holidays season for the first time – plus a big retail focus on Q4, TV ad spend will grow by 3.6%, reaching US$192.8-billion. Within this total, Linear TV is growing by 2.0%, Connected TV (CTV) up by 22.3% and Broadcaster Video on Demand (BVOD) growing by 16.0% as audiences shift to digital platforms.
Out-of-Home (OOH) and cinema will both see encouraging double-digit growth in 2022 (respectively 11.5% and 19.6%). Radio is also forecast to grow much faster than initially considered, with an updated forecast of 5.0% for the year (up from 2.0% in the January predictions), which is mainly due to a faster return to office working. As with previous predictions, ad spend in newspapers and magazines will continue to decline.