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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.
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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.