Global ad market on track for 8% growth in 2022, despite macro-economic strains
New data from Zenith shows that global advertising expenditure is set to grow 8% in 2022. This will in part be fuelled by the Winter Olympics, mid-term US elections and the football World Cup, which – hosted in Qatar – will for the first time take place in the most advertising-intensive period of the year: the run-up to Christmas.
Amongst the highlights of the report, the figures show that:
- Global ad-spend is forecast to increase by US$58.0 billion in 2022, rising to $781 billion from $723 billion in 2021.
- North America will be the strongest region with 12% ad-spend growth this year.
- India will be the fastest-growing market in percentage terms, expanding by 20.8%, driven by election advertising and the resumption of festivals that were cancelled at the height of the pandemic.
- The cost of television advertising is set to rise 11%-13%.
- 62% of ad budgets will be spent on digital media in 2022, up from 59% in 2021, and this proportion will reach 65% in 2024.
- Online video and social media ad-spend is set to grow 15% annually to 2024, with the former overtaking the latter as the fastest-growing channel for the first time in the past decade.
A cautionary tale
Despite what Group M’s Global President of Business Intelligence, Brian Wieser, has called “a growing decoupling between economic activity and advertising,” it’s clear that the advertising sector is not completely shielded from macro-economic factors.
High inflation, concentrated in essentials like heating, petrol, and food, is forcing consumers to reprioritise their spending, particularly the less well-off, and has led to a drop in consumer confidence.
The sustained growth in demand from advertisers is pushing up media inflation, particularly in television, where the supply of audiences is falling steadily as viewers switch to alternatives. Price rises vary widely for different audiences in different countries, but the global average cost of television advertising across all audiences is expected to rise by 11%- 13% this year.
“In a world where trading is becoming dominated by auctions, competitive advantage is achieved not by scale, but by data,” said Ben Lukawski, Global Chief Strategy Officer, Zenith. “Inflation will hit cheap reach buyers hard, but brands that make smart use of their data will manage costs and grow their business at the same time.”
You can read the latest from Zenith here.