Ad spend will grow by 6.2% in Australia in 2022, according to the latest forecasts from GroupM which has readjusted its outlook to a more bullish tone.
This compares to an expected positive growth of 21.5% in 2021, revised higher from mid year estimates of an ad spend lift of 18%.
The forecasts are more upbeat than those just released by Zenith which sees ad spend in Australia growing 5% in 2022, trailing growth of 18% this year.
Globally, GroupM has revised upwards its estimates for 2022, with forecast global growth of 9.7% versus 8.8% previously.
TV, digital platforms, audio, newspapers and magazines, cinema and outdoor media—will collectively account for $766 billion in ad revenue. Combined, they should exceed $1 trillion in revenue during 2025 based upon our new estimates.
GroupM: "The advertising industry is expanding much faster than we anticipated earlier in the year."
Seb Rennie, GroupM Australia chief investment officer: “As we come to the end of 2021 we can reflect on a year of incredibly positive growth, +21.5%, for the overall market.
"Pure digital and digital extensions of traditional media have seen the largest growth reflecting the changing media consumption habits of consumers, the diversification and growth of ecommerce channels and the growth of business rooted in the internet economy.
"Whilst not reaching the heights of the US, China and UK who are leading the global growth; 2022 will bring the Australian media sector more moderate, but positive, growth at 6.2% with a continuation of digital trends from 2021 and the post lockdown release of pent up demand for OOH and Cinema.”
The global outlook:
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