Advertising market to retain positive trajectory in 2023
By Zion Rufus
The advertising market in 2023 is expected to retain a positive trajectory in all regions. Although a significant proportion of the growth will be driven by media price inflation, Dentsu’s ad spend forecast
Global advertising spend is projected to reach US$740.9billion in 2023 according to the latest ad spend forecast from Dentsu.
Although more moderate growth is forecast at 3.8% in 2023, revised down from the previous prediction of 5.4% in 2022, the 2023 advertising market is expected to retain a positive trajectory in all regions – Asia-Pacific (APAC) 4.0%, Europe, the Middle East and Africa 3.8%, Americas 3.7%.
Macroeconomic challenges, including rising inflation of energy, food, and fuel costs, rising interest rates, and the impact on business and consumer spending have led to expectations of slower ad spend growth. However, in Japan the lifting of travel restrictions, coupled with the government stimulus measures to support the return of travel is expected to lead to a surge in advertising demand. Other positive global spend drivers in 2023 will include events such as the Rugby World Cup 2023 and the FIFA Women’s World Cup 2023.
In addition, a significant proportion of the growth in 2023 will be driven by media price inflation. Latest data from the World Federation of Advertisers (WFA) report revealed inflation continues to be highest for Linear TV (Broadcast and Pay) in 2022 driven by continuing demand and declining scheduled TV audiences. Inflation is less for other audiovisual formats such as Connected TV (CTV), Broadcaster Video On Demand (BVOD), Digital Video and traditional media such as Print and Radio, with some exceptions by market and media.
Meanwhile, all the growth drivers are within Digital. Whilst traditional media (Linear TV, Newspapers Print, Magazines Print, OOH, Radio and Cinema) continue to account for US$261.4billion, this is forecast to increase by just 0.3% in 2022 and decline by -2.0% in 2023.
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