The dentsu advertising group has published its Global Ad Spend Forecast. According to the study, the global advertising market is rebounding strongly after the regression of 2020. Average growth this year is to be three times faster than in the equivalent period after the 2008 financial crisis (in 2011 it was 3.2%; now 9.2%). Among the markets set to grow faster than the global average are the countries of Central and Eastern Europe (the so-called CEE).
The total amount that advertisers from around the world will spend on advertising in 2022 will, according to the Global Ad Spend Forecast, reach 745 billion dollars. That is 117.2 billion more than before the outbreak of the pandemic.
Digital takes a bigger slice of the advertising pie
In 2022, as much as 55.5% of the value of the advertising market (408.4 billion dollars) worldwide will come from digital. The dentsu group forecasts that in 2024 this figure will reach as much as 59.4%. This means the twilight of the dominance of more traditional forms of advertising.
– In 2022 the larger part of the global pie will belong to digital advertising – says Sławomir Stępniewski, CEO of dentsu Poland and CEE. – For the market this is a breakthrough moment, because never before has digital achieved such a large advantage in the advertising market. In 2019 this figure was 43.2%, but as we can see, the pandemic rapidly accelerated this growth. We estimate that in two years its value will increase by 79.2 billion dollars and the position of digital advertising worldwide will strengthen even further.
In second place, in terms of value on the advertising market in 2022, will be television advertising – 197.8 billion dollars. According to the study, for several years now we have been seeing a decline in its importance relative to digital. In 2019, 32.7% of the value of the global advertising market came from television advertising. By 2024 this is to be just 24.9%.
Strong growth in cinema and OOH advertising
In 2022, alongside digital, the cinema advertising market (growth of 23.4%) and out-of-home, or OOH, advertising (growth of 12.8%) will also take off. The former suffered significantly as a result of the pandemic and, according to the Global Ad Spend Forecast, will not rebuild its position by 2024 (the value of cinema advertising in 2019 was 3.6 billion dollars, and in 2024 it is to be only 2.9 billion). It is forecast that OOH will already experience a significant decline in growth dynamics over the next two years (2.7% in 2023 and 1.9% in 2024).
As might have been expected, according to dentsu, the print advertising market will continue to lose importance. Radio advertising, on the other hand, will record slight growth – an increase in 2022 at the level of 2%.
Poland and other countries are growing stronger
The fastest-growing advertising markets in 2022 will include India (growth of 14.6%), the United States (14.0%) and the CEE countries (11.4%).
– In 2021 it was impossible not to notice the slowdown of the advertising market across the entire CEE region (in 2021 dentsu's growth in CEE was 23.1%), nevertheless it continues to develop faster than before the pandemic (in 2019 growth was 8.4%) – adds Stępniewski. – In 2022 the advertising market in CEE will reach 18.6 billion dollars and, excluding Russia, 10.2 billion dollars. Dentsu CEE, which for two years has operated as one coherent organism, has undoubtedly played its part in increasing the value of the advertising market in the Central Eastern Europe region. Thanks to our transformation we build value and help brands and our clients effectively make use of the digital ecosystem and the marriage of technology and media.
These industries will invest most heavily in advertising
In 2022 the largest increase in money spent on advertising will be noticeable in the travel industry (growth of 10.3%), which suffered greatly as a result of the travel restrictions caused by the pandemic. The next industry that will invest most strongly in advertising this year is the automotive industry (growth of 7.6% in 2022). Although compared with last year we see a decline in dynamics here (11.5% in 2021), this industry is visibly recovering from the blow that was COVID-19 (in 2020 the value of advertising in the automotive industry fell by 15.9%).
The most important advertising events of the year
Dentsu forecasts that the most significant events in 2022 that will positively influence the advertising market worldwide will be, in the first quarter, the Winter Olympic and Paralympic Games in Beijing. Growth is to reach 8.9%. In the second and third quarters, growth of 10.3% and 10.7% is expected. Thanks to the FIFA World Cup in Qatar in the fourth quarter of 2022, dentsu forecasts market growth of 9.2%.
The full dentsu Global Ad Spend Forecast report is available HERE.
