Ad Spend Forecast: Advertising market grows
Dentsu publishes its Ad Spend Forecast 2022 with forecasts on the development of net advertising investments. The semi-annual study is based on data from more than 50 markets in North and South America, Asia-Pacific, and the EMEA region.
Globally, 2022 will be a year of rising advertising spend. After the sharp decline of -7.1 percent from 2020 and the record-breaking growth of 17 percent in the following year, which corresponds to a net investment sum of USD 682.5 billion, the dentsu experts are forecasting global growth of 9.2 percent. The drivers of global development are the Winter Olympics, the Paralympics in Beijing, the FIFA World Cup in Qatar and spending on the mid-term elections in the USA. Remarkably, compared to the global financial and economic crisis of 2008, the upturn in advertising spending is almost three times higher than then, at 9.2 percent. In 2011, growth in the second year after the financial crash reached just 3.4 percent.
Switzerland: Net advertising investment could rise by five percent
Looking at Switzerland, dentsu expects net advertising investment to increase by just under 5.0 percent in 2022, despite ongoing measures to combat the pandemic. Compared to the previous year, at 7.4% percent, this is a rather moderate but solid growth. Digital media is again the strongest driver in 2022 with 8 percent. They account for over 50% percent of investments, which will thus further expand their position as the number 1 advertising channel in Switzerland.
Forecasts strongly dependent on the respective media genre
Print has suffered heavy losses in advertising spending in recent years. Both magazines and newspapers will struggle with the decline in reach and revenue and continue the downward trend from the pre-Corona era in 2022 (magazines -2.0 percent; newspapers -1.8 percent).
In 2021, there was strong investment in TV - demand was even greater than supply, despite strong growth in inflation. For TV, however, advertising spending will grow only slightly next year, at 3.9 percent. Some sectors are still struggling with faltering consumption or supply problems. Added to this is the ever-increasing competition from online video and streaming providers. Advertising investment in radio is expected to show a slight reduction of -1.9 percent this year and account for 2.5 percent of total advertising expenditure.
Heavily dependent on infection, the last two years have been a break for out-of-home (OOH) and cinema, as is well known. However, OOH had already recovered somewhat by the end of last year. Here, advertising spending is expected to grow by 2.1 percent. For investments in cinema advertising for 2022, a double-digit minus is again expected.
Consequences of the Russia-Ukraine war "still difficult to assess".
Jonas Eliassen, CEO dentsu Media Switzerland, comments: "The economy and the advertising market are developing positively for the second year in a row. The consumer sentiment from spring 2021 as a result of low incidences, rising vaccination rates and relaxations had reached marketing quickly and caused a partly surprisingly fast recovery of advertising spendings of almost all channels. Our forecasts show that we will continue to see relevant increases in 2022, with the strongest growth expected in digital spendings. Currently difficult to estimate and not taken into account in our forecasts is the influence the Russian war will have."
Dentsu's full Ad Spend Report can be downloaded at here can be downloaded.
