Australia’s advertising market will grow by 10% to $A22.8 billion in 2022, according to the mid year MAGNA Global Ad Forecast.
Digital advertising spending is forecast to lift 13% $A16.6 nillion, representing 73% of total ad spend.
Linear advertising formats are growing by 4% this year to $A6.1 billion. This follows 2021’s 12% growth for linear advertising sales, which represent 93% of the pre-COVID linear ad spending total.
Looking to 2023, Australia’s advertising economy will grow by 5% to $A23.8 billion with digital advertising again leading the way (up 7%).
Nick Durrant, MD, MAGNA Australia said: “Magna foresee another year of strong advertising growth in the Australian market, with the total market set to surpass $22.8 billion.
"Digital ad spending will once again be the key engine of growth with digital spend forecast to grow by 13% whilst Linear will grow by a still respectable 4%.
“The second half of the year however carries much uncertainty and aggressive RBA activity to combat inflationary pressure may yet see growth in the ad market constrained.”
Globally, MAGNA says advertising spending, after a strong start of the year, is slowing amid economic uncertainty, but organic and cyclical growth factors will support marketing activity and advertising demand.
The 9.2% global growth forecast for 2022 is down from the 12% outlook made in December. However, the current rate is above pre-COVID growth.
Vincent Létang, EVP, global market research at MAGNA and author of the report: “Most of the headwinds facing the advertising market this year were expected: economic landing following a red hot 2021, continued supply issues generating inflation, and mounting privacy restrictions slowing down the growth of digital ad formats.
"On top of that, the war In Ukraine now exacerbates inflation and economic uncertainty. Nevertheless, MAGNA believes full-year advertising revenues will grow again in 2022, helped by a strong start to the year, on top of organic and cyclical drivers.
"Organic growth factors (continued and broad-based ecommerce spending, digital marketing adoption), strong cyclical drivers (record political spending in the US, Winter Olympics and FIFA World Cup), and the strength of emerging or recovering industry verticals (Travel, Entertainment, Betting, Technology) will generate enough marketing demand to offset headwinds and keep the advertising economy growing in full-year 2022.”
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