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Tag: Ad Spend Forecast

  • India fastest-growing market globally at 14.6%: dentsu Global Ad Spend Forecast report

    India fastest-growing market globally at 14.6%: dentsu Global Ad Spend Forecast report

    Mumbai: Advertising expenditure in the Asia Pacific is expected to grow by 5.9 per cent, with India being the fastest-growing market globally at 14.6 per cent, followed by the US, Russia and Canada, according to dentsu’s Global Ad Spend Forecast report. Digital forecast is expected to increase 9.6 per cent to a share of 61.1 per cent of total APAC advertising spend, even as advertising investment overall is forecast to grow by 9.2 per cent globally in 2022, as per the report.

    In APAC, overall ad spend growth is boosted by key sporting events such as the Indian Premier League, FIFA World Cup, Winter Olympics, and country elections in Australia and India.

    Moving towards a second consecutive year of growth following the five per cent market dip in 2020, 2022 is projected to build on a stronger than expected recovery in 2021 which itself saw a record-high 14.4 per cent growth in APAC, totalling $241 billion. The twice-yearly report which combines data from over 50 markets globally, anticipates $745 billion will be spent globally. 

    Digital and television continue to be the two powerhouses driving global and APAC ad spend, yet with opposite dynamics. Following a 24.8 per cent increase in 2021 (vs 29.1 per cent globally), dentsu forecast digital investment to grow by 9.6 per cent (vs 14.8 per cent globally) in 2022, fuelled by Social and Programmatic in APAC. This will result in the digital share of spend increasing to 61.1 per cent ($150 billion) of the total ad spend in APAC, over twice as big as the television share of spend (24.5 per cent) in 2022.

    Linear TV ad spend increased by 5.1 per cent in 2021, the highest rate since 2013. In 2022, dentsu forecast linear TV ad spend to grow by 1.4 per cent to reach $60 billion in APAC. Unlike digital and despite staying in high demand, dentsu is seeing linear TV share of spend on the decline – both globally and in the region – as connected TV and video on demand (VOD) grow.

    Out-of-home (OOH) and cinema will both see encouraging growth in 2022, respectively 12.8 per cent and 23.4 per cent globally (vs 2.8 per cent and 30.0 per cent in APAC). Radio too is forecast to grow, yet at a slower pace of 1.5 per cent in APAC (vs 2.0 per cent globally). As with previous predictions, ad spend in newspapers and magazines will continue to decline globally and in APAC. 

    Globally, the industries that will see growth in ad spend this year will include the beleaguered travel industry which is forecast to see a 10.3 per cent rise. There is also confidence the automotive advertising spend will grow by 7.6 per cent in 2022. Growth follows an 11.5 per cent increase in 2021 and steep declines in 2020 of -15.9 per cent. With pent-up demand and a trend towards personal vehicles in how people want to travel post-pandemic, there is confidence in the recovery of the automotive industry.

    Looking further ahead, APAC ad spend is predicted to grow by 5.6 per cent (vs 4.6 per cent globally) in 2023 and 4.9 per cent (vs 5.8 per cent globally) in 2024 – exceeding growth before the pandemic (4.1 per cent in 2019). Digital is forecast to increase its share of spend domination to 64.6 per cent in APAC (vs 59.4 per cent globally) in 2024. Of course, many factors contributing to the uncertain economic outlook could influence the predictions, from the evolution of the pandemic to supply chain issues, and dentsu recommends the industry keep a close eye on key economic indicators.

    “APAC region is expected to post robust growth in ad spend in 2022. India, Hong Kong and Vietnam will drive double-digit growth with the rest of the region showing strong growth,” said dentsu International CEO Media APAC Prerna Mehrotra. ” The share of digital spends in APAC is set to increase to 61.1 per cent up from 50.1 per cent in 2019 (pre-covid), driven by Greater China and ANZ. TV as a platform will continue to play a key role especially in Southeast Asia and South Asia.”

    “Marketers will need to be nimble, leaning on technology and maximizing opportunities in video, social, connected TV and e-commerce. The use of data to drive business outcomes without compromising privacy or security will continue and we expect data collaboration to be a big focus for 2022. In light of the ongoing global turbulence and recovery, we will continue to work with brands to accelerate efforts to engage consumers and drive attentive reach,” she further added.

    When compared to previous global financial and advertising crises, notably the financial crash of 2008, this rebound is almost three times greater, said the report. In 2022 the growth forecast at 9.2 per cent is nearly three times the 3.4 per cent growth in 2011 – the second-year post-global financial crisis. In 2022 the global ad market exceeded the 2019 pre-pandemic level of spend by 18.7 per cent, whereas in 2011 the global ad market continued to be one per cent lower than in 2008.

    “The bounce back from the early pandemic impact continues to be strong, especially in digital,” remarked dentsu International Global CEO media and global clients Peter Huijboom. “As we spend more time consuming digital media, brands have the opportunity to tap into the increased flexibility in which consumers engage through multiple touchpoints. Businesses who truly understand these developed human behaviours have the best opportunity to build lasting relationships with them.”

    “It also comes as no surprise of the increased popularity in gaming. Dentsu launched its global gaming proposition in 2021. Along with the burgeoning Metaverse, there has never been a more exciting time for brands to experiment, innovate and engage with their customers – as all forms of media are increasingly more central to daily life and routine,” he further said. 

  • Carat predicts global ad spend growth at 5% in 2014 & 2015

    Carat predicts global ad spend growth at 5% in 2014 & 2015

    MUMBAI: Carat, a global media network, published its updated forecasts for worldwide advertising expenditure in 2014 and 2015, with market optimism demonstrated through strong global and regional forecasts.

    Based on data received from 59 markets across America, Asia Pacific and EMEA, Carat’s latest forecast shows overall global advertising revenues accelerating by +5.0 per cent in 2014, an increase on the +4.8 per cent predicted in March 2014, and reaffirming positivity for 2015 with year-on-year growth predicted at +5.0 per cent.

    From a regional perspective, Carat predicts further positive momentum in 2014 for North America and Western Europe, compared with figures announced in March 2014. The US continues to show strong on-going market growth, with levels of advertising spend in North America expected to exceed the pre-recession peak in 2007 for the first time by the end of 2014. Western Europe is predicted  to see a return to positive growth of +2.7 per cent after two consecutive years of declining advertising spend, driven by a strong UK advertising market forecast to grow by a robust +7.5 per cent, this year.

    Whilst forecasts show a slight decline in growth when compared with predictions from March 2014, Asia Pacific and Latin America are still both forecast  to outperform global predictions, with growth rates for 2014 of +5.4 per cent and 12.1 per cent respectively, and the only regions to see double digit growth in some markets.  Carat’s data also highlights that the outlook for 2015 continues to be encouraging with all key markets forecast to return to positive growth.

    In media, digital outperforms previous predictions for 2014 with year-on-year growth forecast at +16.1 per cent. Digital  will also increase its total share of spend, reaching 20.5 per cent in 2014 and 22.6 per cent next year, when it will outpace the combined Magazines and Newspaper global share for the first time. Whilst the steady decline in print is expected to continue, all other mediums are predicted to achieve year-on-year growths of approximately 3-5 per cent in 2014 and 2015.

    Dentsu Aegis Network CEO Jerry Buhlmann said, “Carat’s latest advertising forecast gives us increased optimism for the outlook of global and regional advertising spend. With the global recession further behind us and a healthy trend of 5 per cent year-on-year global ad growth, there is positive momentum building across the industry.”

    He added, “Whilst Digital continues to headline market trend discussions, the components within this dominant media now provide the interesting chapters, with the opportunities in mobile leading the debate. With changes and trends in consumer behaviour driving business opportunities, brands need to deliver innovative and integrated solutions to reap the rewards ahead.”

  • GroupM forecasts ad spends to reach $560 billion by 2015

    GroupM forecasts ad spends to reach $560 billion by 2015

    MUMBAI: WPP’s GrpupM is out with its biannual ‘This Year, Next Year’ report forecasting the global advertising investments.

    As per the report the ad spends will reach $534 billion in 2014, a 4.5 per cent increase over 2013. The company predicts investments in 2015 rising an additional 5 per cent to $560 billion.

    In further says that globally, ad recovery is localised, with 17 markets accounting for 93 per cent of expected ad growth in 2014. Even at its moderate 3.4 per cent rate of ad investment growth this year to $162 billion, the US contributes fully one-quarter of incremental ad dollars. China ranks second as it climbs a predicted 9.8 per cent to $76 billion. Other countries making the cut include Nigeria, Kenya and Vietnam.

    “Many companies are still operating with very strong balance sheets,” said GroupM Global president Dominic Proctor. “Coupled with a rising general confidence and a specific comfort around digital marketing, though notwithstanding some geo-political uncertainty, we are seeing an uplift in some of the ‘older economies’ as well as the new.”

    Of marketplace performance, ‘This Year, Next Year’ report editor Adam Smith stated, “Despite the slowdown in China’s general economy from 2012, its consumer economy continues to expand. This, plus intensive digitisation of advertising, keeps China ad investment rising at or near double-digits, with no large print legacy to correct.”

    It is a different story in Western Europe, where 73 per cent of the regional economy is in the Eurozone, where demand remains suppressed by debt, internal imbalances and deflationary politics. In real terms, the Eurozone remains 20 per cent below its 2007 advertising peak, and the hardest-hit ‘periphery’ of Greece, Ireland, Spain, Italy and Portugal, 47 per cent below the peak.1

    Smith added, “Western Europe, however, is the most-digitised ad region in the world; though this may finally be maturing to judge by digital ad investment growth slowing from double- to high-single digits in 2014 and 2015.”

    Western Europe also has the world’s most print-heavy advertising, though here too, the downward adjustments to annual advertising investment are moderating from double- to mid-single-digits in 2014 and 2015.    

    Elsewhere, GroupM notes that some members of its south-east Asia group (Indonesia, Malaysia, Thailand, Philippines, Singapore and Vietnam) face political and economic challenges, and this year will collectively slip from double- to mid-single digit ad growth.

    “This group will still contribute to the global ad recovery, but we are on alert for central banks ‘tightening into the downturn’ if inflation becomes a problem,” said Smith.

    India, Brazil and Russia remain among the faster-growing ad markets, though GroupM warns that its reduced Russia forecast – from an annual run-rate of 10 per cent to 6 per cent — depends on no worsening in domestic affairs.