fbpx

ADVERTISING SPENDING

E-commerce and media consumption shifts will drive digital ad sales

By our News Team | 2022

Digital advertising is expected to rise by 8% next year, says Magna. OOH and digital video will be among the best performers.

Magna, the global media investment and intelligence company, has downgraded its growth estimates for the global advertising industry and is now expecting 5% growth in 2023, versus the 7.5% predicted in its June 2022 report.

It attributes this expected downturn to a deteriorating macroeconomic environment that includes factors such as the Russia-Ukraine war and the international cost-of-living crisis.

 

Advertising Spending

Photo by Andres Ayrton from Pexels

But digital ad sales are expected to rise by 8%, reaching US$557-billion in global sales and comprising 65% of all ad sales. 

E-commerce and ongoing shifts in media consumption habits will drive digital ad sales, Magna believes, with digital video expected to be the fastest-growing ad format. 

A recovery in social media?

A recovery in social media could see ad sales increase 7% in the segment, while search is expected to gain 10%.

OOH had a brighter-than-most 2022 and is expected to make a full global recovery in 2023, reaching $33.5-billion in ad revenue.

Strong growth is expected for ad-supported video on demand and linear addressable. Resilient pricing and sport genres are also expected to cushion the TV sector, while rising concerns around brand safety could slow digital investments for some marketers, potentially benefiting TV.

”Marketers continue to value the brand safety that editorial media vendors deliver, combined with expanding cross-platform  opportunities,” said Vincent Létang, Executive Vice President of Global Market Research at Magna and author of the report.

Major global markets such as China and India could experience a recovery next year. China, the second largest ad market reflecting 15% of global revenue, is expected to grow 7% to $128-billion following a weak 2022 performance of 3% growth. The slow year was largely driven by China’s zero-Covid policy, which has led to internal protests and market disruptions.

India, which is among the top 15 advertising markets globally, is expected to grow 14% next year, with South Korea’s market expected to grow 7%. However, key markets such as Germany, Italy, Spain and Japan are forecast to have little growth.

View all articles »

PUBLICATIONS

Strategic Marketing for Africa Magazine

CONTACT INFORMATION

info@africanmarketingconfederation.org

Upcoming Events

AMC CONFERENCE

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.