Ad spend is still growing this year, but is down on predictions
By our News Team | 2022
Global advertising sector is now predicted to grow at 8.4% in 2022, more than one percent less than previous expectations, says report.
The global advertising sector is being predicted to grow 8.4% this year, according to international ad agency GroupM, which is part of the WPP network. However, this figure is slightly down on the 9.7% prediction made by the agency late last year.
This less bullish outlook is being attributed to “numerous problems at the forefront of daily life in many of the world’s largest advertising markets”. Among these is the impact of the Russia-Ukraine conflict, supply chain limitations, ongoing lockdowns in China, and higher prices for consumers – particularly food.
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China, where advertising accounts for 20% of the global ad market, is struggling economically due to Covid-induced lockdowns and the impact on global ad spend will likely be significant.
US political advertising, which accounts for billions in advertising revenue each year, is specifically excluded from the GroupM industry forecasts.
Many ad industry people are overly negative
“Although the overall economy and environment is more negative now than it was in December … people in our industry – and I think many pundits – are overly negative relative to the reality of how the overall economy is faring,” Brian Wieser, the President of Business Intelligence at GroupM, is quoted as saying by Reuters news agency.
Reuters further noted: “The advertising market, which typically tracks the broader health of economies, is settling after experiencing highs in 2021, when it was boosted by strong economic recovery and personal consumption.”
According to the GroupM report, digital advertising continues to take more share of the market and digital advertising platforms should grow by 11.5% during 2022. This is down on the previous forecast of 13.5% growth this year.
Digital currently represents 67% of the industry’s total advertising expenditure, and should reach 73% in 2027, the agency predicted.