Mumbai: GroupM has released its This Year Next Year (TYNY) Global mid-year forecast for 2023. Global advertising (excluding US political advertising) is expected to reach $874.5 billion during 2023. India’s advertising revenue growth would be among the highest in the world.
As per the report, global advertising revenue (excluding US political advertising) is expected to grow in the second half of 2023 by 5.9 per cent and by six per cent in 2024.
India’s advertising revenues from traditional and non-traditional revenues collectively would grow 12 per cent during 2023, the highest among the top 10 markets in the world, according to the report. US, which is expected to grow by 5.1 per cent, would reach $322.5 billion while China would grow by 7.9 per cent in the next half year of 2023.
Germany’s ad revenues would grow by six per cent while that of France would grow by 4.2 per cent. Brazil’s advertising revenues for 2023 would grow by 6.6 per cent while Canada would grow by five per cent. The United Kingdom and Japan, each would grow their ad-revenues for the year by 4.8 per cent while Australia would see the lowest growth of a mere 0.2 per cent for the rest of the year.
Among the various channels of advertising, the traditional print advertising medium is expected to see a sharp fall by 4.8 per cent while television advertising would come down by 1.2 per cent for 2023 over last year.
Digital areas of spending by brands and consumer-facing companies are expected to have the highest growth of 12.7 per cent for 2023. Digital pure play ad revenue will account for 68.8 per cent for 2023 of the revenue pie and is expected to reach 74.4 per cent of the total by the year 2028. The single-digit growth is due to a large base and a maturing medium that is digital, mentions the report.
Retail media, which is around 14.4 per cent of the total revenues, will grow 9.9 per cent during the rest of 2023. Retail media, according to GroupM, includes revenue from last-mile delivery providers.
Out of Home advertising (OOH) will grow the highest during 2023 by 12.7 per cent on the back of a full recovery post-pandemic. Hybrid working, which is a combination of WFH and from office combined, is becoming a mainstay worldwide, getting potential consumers to step out of home. The growth percentage is in double-digit, also because of a two-year rout on the back of the covid led lockdowns and business disruptions.
Digital OOH is expected to grow 12 per cent on the back of a massive recovery in the Chinese market, where it will grow by 39.7 per cent. China has been among the worst affected between 2020-2022, where the covid virus is said to have originated from.
The top 25 global ad-sellers accounted for 75.3 per cent of the advertising revenue during 2023, as per the report. It was 74 per cent during 2021.
“We are at an inflection point where the secular drivers of advertising growth above and beyond GDP growth are maturing, the pandemic upheaval is receding and the dynamic rise of digital advertising has slowed. This is the basis of our underlying forecast of mid-single-digit advertising growth over the next five years. However, the pervasive impact of AI on the world of advertising could change that,” elucidates GroupM in its report.
“Advertisers in this environment will be well-served by having proactive guidelines and the right partners to navigate these waters so that choices in budget allocation and the use of AI are made intentionally with the long-term health of the business in mind,” the report pointed out in its final remarks.
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