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ADVERTISING

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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Photo by Jose Francisco Fernandez Saura from Pexels

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.

Dr Kin Kariisa

Group CEO - Next Media

Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

  • Other current and previous roles played by Dr Kin Kariisa:
  • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
  • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
  • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
  • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
  • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.