8 months ago| article
The global ad spends forecast predicts the Indian market to surpass the US and Brazil markets in 2022
Jul 14, 2022 09:16:00 AM | Article | Campaign India Team Share -
Dentsu International has rolled out its latest global ad spends forecast report for July 2022.
According to the report, the projection for India is pegged at a growth rate of 16% for this year.
Globally, the US ad rate is pegged at 2.8% and Brazil at 9%, making India the fastest growing market.
The forecast for India will be on a steady growth trajectory with ad expenditures of 15.2% in 2023 and 15.7% in 2024, reports the dentsu predictions.
For APAC, the ad expenditure is pegged at US$250.0 billion, with digital accounting for much of this ad spends amount.
The reason for the bullish upward trajectory for APAC is due to marquee sporting events such as the Indian Premier League, FIFA World Cup (being played in Qatar), Beijing 2022 Winter Olympics and Paralympics, and country elections in Australia and India.
Globally, the two sectors in the media industry that will see an upwards trend is the OOH industry (11.5% growth) and cinema (19.6% growth) in 2022. On the contrary, ad spends in newspapers and magazines will continue to decline this year.
Prerna Mehrotra, CEO media APAC, dentsu International, said, “The latest dentsu ad spend July 2022 points to a continued recovery despite another year of economic uncertainty, with APAC 2022 ad spend of US$250.0 billion, based on a growth forecast at 5.1%. However, continued lockdowns in key markets, geo-political tension and ongoing supply logistics issues could add pressure on businesses with a cascading impact on marketing spends.”
Mehrotra added, “This year, India (+16.%), Malaysia (+11.%) and Hong Kong (+10.1%) have all achieved double-digit growth. Digital continues to drive growth accounting for 60.7% of all spending in Asia Pacific with social, video and search predicted to lead digital growth. Advertisers increase focus and resources into ecommerce, display, and search budgets to respond to the new consumption habits. Marketers need to better understand their audiences and meet their needs with relevant messaging as online behaviour surges in Asia. Use of first party data to identify the most profitable customers, combined with third-party data to target the prospects in the most efficient channels will help drive efficiency and manage costs.”
Peter Huijboom, Global CEO, Media and Global Clients, dentsu International said, “Even with everything which has happened in recent months, not least the protracted war in Ukraine and its International repercussions, the advertising recovery remains strong on a global scale. And, despite factors such as inflation putting pressure on household budgets, combined with 2021 being a tough comparative year, we have only marginally revised down our 2022 global growth forecast by just 0.4 percentage points."
Huijboom added, “Despite global economic uncertainty, brands are continuing to prioritise their spend in channels which will give them both the digital-flexibility and return they seek. It is through our clear and robust insight and understanding of the market we are able to work with clients to navigate what’s next and partner with them on their future investment.”