Advertising Spend is projected to keep rising through the next few years, but the growth is slowing, and spend is increasingly shifting to digital and especially performance channel.
In the current economic climate many advertisers want to use tried and tested means to generate sales and income as we move into a time of economic uncertainty.
dentsu Ad Spend Report
The latest dentsu ad spend forecasts show global growth of 8.0% in 2022, with the advertising market reaching US$713.6billion, up US$53.0billion, building on record growth in 2021, which was 19.8% higher than 2020 as activity returned with the easing of Covid-19 restrictions.
Digital is now the largest part of ad spend, at 55.3%, rising to 58.2% in 2024. While still growing, the pace of digital growth is easing. Digital spend increased by 13.7% in 2022 but is forecast to slow in 2023 to 7.2% revised down from the previous forecast of 9.3% in the July 2022 report.
Amidst the economic uncertainty, growth will be driven by performance outcome-based spend in Search 7.2%, Social 13.5%, Video 7.1% and Retail Media 22.0%. Retail Media - advertising within retail platforms like Amazon - is a particular highlight in this year’s report, with many advertisers wanting to put their ads in a very focussed commerce context, where they can easily see the effects of their activity on sales.
Discover more on dentsu Ad Spend Report for December 2022.
