The most recent ad spend re-forecast for 2023 indicates that digital marketing has reached maturity.
Stronger growth ahead, with
2024 global advertising market now expected to increase by 4.7%, to reach
US$762.5 billion, with a further 3.8% growth into 2025. • Digital projected to
settle into almost consistent incremental growth for three years, to account
for around $3 in every $5 spent in advertising worldwide. • Global advertising
spend expected to grow by 3.3% in 2023, with inflation driving increase to
reach US$727.9 billion.
UK, London, May 31, 2023:
According to the most recent Densu Global Ad Spend Forecasts research,
advertising spending would increase globally by 3.3% in 2023. This mid-year'reforecast'
of the twice-yearly report projects that global spending would total US$727.9
billion by the end of the year.
The updated Densu Global Ad
Spend Forecasts for 2023 indicate that growth will continue, but slightly
slower than the 3.5% forecast in the December 2022 report, primarily because of
macroeconomic issues. When you look behind the headlines, the research also
reveals that rather than rising advertising volume, growth is being driven by
rising media pricing, with an estimated 0.6% decrease in advertising spend
annually*.
The global prognosis, on
the other hand, is more promising, with spending expected to grow more quickly
in 2024 and increase by 4.7% to reach US$762.5 billion, according to
predictions made by Densu experts in over 60 markets. Major athletic and
sociological focus events like the UEFA Euro Championship and the US
presidential election are driving this increased ad spending.
Digital will continue to
grow through 2023, but at an uncommon single digit rate (7.8%), which has only
happened twice in the previous 20 years: in 2009 (as a result of the effects of
the financial crisis) and in 2020 (as a result of the COVID-19 pandemic).
Looking ahead, single-digit growth in the digital sector is anticipated to
become the norm, with a rise in revenue of about US$26 billion per year in 2024
and 2025, against a market share of about 60%.
"For years, we've seen
the industry shift towards digital, more than doubling investment in the last
five years, thanks in part to the almost limitless potential to reach, engage,
and sell to individual consumers," said Peter Huijboom, Global CEO, Media
International Markets, Densu. It has been one of the major forces behind
growth, but with limited marketing expenditures available to organisations, it
is obvious that we are now beginning to reach a point where digital channels
are beginning to mature alongside more traditional ones in the campaign
mix.Some markets, like India, where digital potential is still in its infancy,
are still experiencing tremendous increase in digital spending, which helps to
elevate the entire world economy. However, technological advancements, updated
platforms, and new channels are also important.
"For years, we've seen
the industry shift towards digital, more than doubling investment in the last
five years, thanks in part to the almost limitless potential to reach, engage,
and sell to individual consumers," said Peter Huijboom, Global CEO, Media
International Markets, Densu. It has been one of the major forces behind
growth, but with limited marketing expenditures available to organisations, it
is obvious that we are now beginning to reach a point where digital channels
are beginning to mature alongside more traditional ones in the campaign
mix.Some markets, like India, where digital potential is still in its infancy,
are still experiencing tremendous increase in digital spending, which helps to
elevate the entire world economy. However, technological advancements, updated
platforms, and new channels are also important.
The remaining media
channels are keeping steady, with small year-over-year improvements for
Out-of-Home (+3.8%), Cinema (+2.1%), and Audio (+0.8%). Print ad spending,
however, is still declining (-4.8%). In 2026, according to Huijboom's long-term
extrapolations, this spending pattern might cause out-of-home advertising to
overtake print advertising as the third most popular format. Huijboom
continues, "Of course, we're excited about the impact Generative AI could
have on our industry with the arrival of new in-channel opportunities for
brands to embrace, so we'll need to see if it remains the case."
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