Is the advertising industry being turbocharged? 2 studies and promising news
What do Zenith’s Advertising Expenditure Forecasts and dentsu’s Ad Spend Report have in common? Both studies predict a bright future for the advertising industry. Read on to discover the key findings from the reports!
The advertising industry continues to boom
Wherever you look, all you see are ads, ads, and more ads. The abundance of creative advertising on the Internet, in magazines, on TV, and out of home shows just how well the advertising industry is doing right now. And the trend isn’t abating. According to Zenith’s Advertising Expenditure Forecasts published in December 2021, the pandemic-related restrictions have had no impact on global advertising investments. In fact, the media agency’s study found that the global advertising industry is continuing to develop positively. The advertising market grew by 15.6 percent last year and is set to expand by 9.1 percent this year. Advertisers are expected to still happily dig deeper into their pockets in the near future, too: Zenith estimates that global advertising investments will rise by a further 5.7 percent in 2023 and by 7.4 percent in 2024. The market would have then reached a whopping volume of 873 billion U.S. dollars – crazy!
Good news for a change rather than doomscrolling – the advertising industry is doing brilliantly
Despite the current challenges in the global economy, those are great prospects for the advertising market. According to Zenith, display and search ads are the main driving force behind that growth. The agency also considers social media to be the fastest-growing advertising segment. The forecast for this area is an average annual growth of 14.8 percent by 2024.
Dentsu’s Ad Spend Report published in July 2022 also shows that there’s nothing stopping the advertising industry. The media agency expects global ad spend to increase by 8.7 percent this year alone, with 5.4 percent growth predicted for 2023. According to dentsu, the positive trend is mainly being triggered by the upcoming elections in the U.S. and the FIFA Men’s World Cup scheduled for November and December.
A positive outlook for Germany – with a slight downward adjustment
At the start of the year, dentsu predicted growth of 5 percent for Germany in 2022. However, those expectations have been reduced slightly due to the economic sanctions associated with the war in Ukraine, high inflation, and falling gross domestic product. Nevertheless, the German advertising industry is still expected to grow by 3.8 percent by the end of the year, so it’s heading in the right direction.