Advertising spend will see moderate growth in Australia in 2024, according to the latest analysis from dentsu.
Dentsu forecasts local ad spend to hit $US13.4 billion in 2024 from $US13.1 billion this year.
The almost 2.3% lift is a more moderate outlook than the latest forecasts by MAGNA which show Australia's total advertising revenue growing 3.8% in 2024.
However, dentsu expects global advertising spend to grow 4.6% to $US 752.8 billion in 2024 with media inflation driving the increase.
Ken Lam, iProspect Australia national head of investment, says Australia will be driven by continuing growth in Travel, Automotive and Food and Pharmaceutical, as well as bounce back in the Retail, Finance and Technology sectors.
"Whilst locally, we have seen a relatively strong 2023 so far with total ad spend back only 2% Jan-Oct YTD from a record year in 2022, despite a year of economic uncertainty," he says.
"With the latest news from RBA to pause interest rates in their final meeting this year, there should be optimism for advertisers heading into 2024, and a great opportunity for brands to accelerate growth through opportunities in emerging tech like AI, advancing automation and digitalisation capabilities to maximise performance, effectiveness and outcomes.”
Advertising spend is expected to grow across all regions. The Americas, the largest region in terms of ad spend, is forecast to overtake Asia-Pacific as the most dynamic with 5.8% growth in 2024, which is significantly greater than the 2.5% growth it experienced in 2023.
Advertising spend in the region is expected to accelerate the fastest until at least 2025 (4.8% growth). Asia-Pacific is predicted to grow by 4.0% in 2024 (+0.5 percentage point vs. 2023), and EMEA by 2.7% growth (+0.8 percentage point vs. 2023).
The March quarter will be the slowest of the year (4.2%) but growth is forecast to accelerate in the second quarter (4.9%) before peaking during the third (5.5%), supported by major sports events.
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