
Marketing Knowledge
Podcasting guru Jon Savage to discuss whether podcasts are the ‘comeback kid in marketing’s rock ‘n roll band?’
ADVERTISING OUTLOOK
By our News Team | 2022
Revenue will still be above pre-Covid levels, but significantly down on 2021. Social media ads to take a big hit.
Global advertising revenues will grow by 9.2% this year to nearly US$828-billion – 32% above the pre-Covid level of 2019, but a slowdown from the 2021 level when the industry was in a “once-in-a-lifetime planetary alignment of factors”.
The outlook is contained in a recently released study by international media investment and research company Magna, which added that it has downgraded its 2022 growth expectations from 12% (predicted in December last year) to an average 9% growth across all media.
Image by Megan Rexazin from Pixabay
Among the reasons listed are a global economic slowdown, mounting restrictions on data-driven targeting affecting digital advertising, and the Russia-Ukraine conflict.
Nevertheless, 9% in 2022 would remain above pre-Covid growth rates, which averaged 7% between 2015 and 2019.
“Offsetting the effect of a weaker economic environment, organic drivers continue to fuel marketing activity and advertising spending,” Magna said.
“Among these: the competition between brands to gain leadership in new, fast-growing product verticals driven by lifestyle or regulatory changes (e.g. sports betting, food apps, direct-to-consumer disrupters), and the growing adoption of digital advertising by both local businesses and consumer brands, often at the expense of below-the-line marketing channels.”
The report says most industry verticals are expected to stabilise or increase ad spend this year. Travel, Entertainment, Betting and Technology are expected to grow the most, while Automotive and CPG/FMCG budgets may be under pressure due to supply chain and cost issues.
The EMEA economy and ad markets will slow down more than other regions in 2022 because of the impact of the Ukraine war on trade and energy costs and energy supply. Additional headwinds include supply chain issues and the slowdown in Chinese imports, hurting manufacturing industries.
Social media advertising spend slows down
One of the surprises is the strong predicted decline in social media advertising. Growth in 2021 was around 36%, but this is expected to halve to 18% growth in 2022.
According to Magna, this is because social ad formats are being hit by a combination of headwinds, among them:
“Past a difficult 2022, when ad sales must compare with a 2021 year that was still mostly without targeting limitations, the market should stabilise or recover some strength,” Magna said.
Podcasting guru Jon Savage to discuss whether podcasts are the ‘comeback kid in marketing’s rock ‘n roll band?’
While some legislators want a complete ban on TikTok due to spying concerns, US marketers want to spend more on the platform.
Utah is the first state to heavily curb minors’ access to social media, but others may follow with even stricter laws.
Businesses can make more accurate predictions about demand, optimise their operations and make better decisions about inventory management.
High-level Chartered Marketer (Africa) programme equips marketers to operate successfully in the continent’s complex and diverse markets.
Why do some articles captivate readers and encourage them to keep reading, while others make them lose interest after just a few sentences?
Analysis finds social media used by less than 4% of people, while mobile phone connections are equivalent to less than 60% of Malawians.
E-commerce giant is yet another tech company that is finding the market increasingly tough. It has already cut 18,000 jobs.
Survey finds 60% of marketing leaders believe collecting customer data while balancing privacy and customer value is now more challenging.
Charge as if you’re employing a small team. It’s not deception, it’s the money you will use to start hiring and scaling the business.
It is not sufficient for consumers to want to decrease sugar intake. Brands should offer appealing products that help reduce consumption.