Dentsu shaves projected 2022 global ad spend growth down to 8.7%
Dentsu has presented a bullish forecast of future advertising spending, projecting the global market to rise a mere 8.7% in 2022 as a result of economic headwinds – a decline of 0.4% from its January forecast.
Dentsu remains in a sunny disposition for its July ‘reforecast’
The ad network remains in a sunny disposition for its July ‘reforecast,’ despite continued geopolitical unrest and rampant inflation, projecting steady ad growth for the next two years – rising 5.4% in 2023 and a further 5.1% in 2024. As a result total ad spend should hit a healthy $738.5bn this year, before swelling further to $778.6bn the year after.
Peter Huijboom, global chief executive, media and global clients at Dentsu International, said: “Even with everything which has happened in recent months, not least the protracted war in Ukraine and its international repercussions, the advertising recovery remains strong on a global scale. And, despite factors such as inflation putting pressure on household budgets, combined with 2021 being a tough comparative year, we have only marginally revised down our 2022 growth forecast by just 0.4 percentage points.
“Despite global economic uncertainty, brands are continuing to prioritize their spend in channels that will give them both the digital flexibility and return they seek. It is through our clear and robust insight and understanding of the market we are able to work with clients to navigate what’s next and partner with them on their future investment.”
A key growth driver in the year ahead is the Fifa World Cup, which is expected to push TV ad spend growth to 3.6%. Digital also remains in the ascendancy, accounting for 55.5% of overall 2022 ad spend with a further 14.2% growth.
Expansion is further underpinned by video, paid social, search and programmatic, all of which are set to register double-digit growth of 23.4%, 21.9%,12.9% and 19.9% respectively.
Dentsu’s twice-yearly report draws data from 58 markets, with the US (12.8%), India (16%) and Brazil (9%) providing the lion’s share of growth in 2022.