Dentsu Group Announces Revised Edition of “Global Advertising Expenditure Growth Rate Forecast (2022-2024)” –CNET Japan

-In 2022, although it will be slightly downwardly revised from the previous January forecast, it is expected to grow by 8.7%-

Dentsu Group Announces Revised Edition of “Global Advertising Expenditure Growth Rate Forecast (2022-2024)” -2022 is expected to grow by 8.7%, although it will be slightly downwardly revised from the previous January forecast-

Dentsu Group Inc. (Headquarters: Minato-ku, Tokyo, President and CEO: Hiroshi Igarashi) has announced a revised version of the “Global Advertising Expenditure Growth Rate Forecast” compiled based on data collected from 58 markets around the world. did. This forecast is carried out twice a year, and this time it will be an update of the 2022, 2023 and 2024 forecasts. From this time, the figures for the Russian market are excluded, retroactively to future forecasts and past data.
The main results are:

Global advertising spending growth rate in 2022 is expected to grow by 8.7%, even though it has been revised downward by 0.4pt from the previous January forecast.
The 2022 growth forecast has been revised downward by 0.4pt from the previous January forecast, reflecting the decline in consumer spending due to the rise in global expected inflation, but the recovery trend from the corona disaster continues. It is expected to grow by 8.7% due to an increase in demand for advertising due to various global sporting events and elections in major countries. This is the second consecutive year of growth following 2021, which was a 19.6% growth, and the market size is expected to reach US $ 738.5 billion. Digital advertising spending will continue to drive overall growth, with a growth rate of 14.2% in 2022 and 55.5% of total advertising spending.
Although the world situation is uncertain, the advertising market is expected to continue to grow steadily, with growth of 5.4% in 2023 and 5.1% in 2024.

Following 2021, positive growth in all regions in 2022
Continuing from last year, 2022 is expected to see positive growth in all regions such as North America, Western Europe, Central and Eastern Europe, Asia Pacific (including Japan), Latin America and the Middle East. The top five markets are the United States, China, Japan, the United Kingdom and Germany. The markets with high growth potential in 2022 are India, the United States and Brazil.
　　　　

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(Note) Retroactive to future forecasts and past data, excluding figures for the Russian market

■ About the global advertising market in 2022
By medium, digital advertising spending, which grew 15.6% in 2021, will continue to grow at a high 14.2% in 2022, and the ratio of digital advertising spending to total global advertising spending is expected to reach 55.5%. .. We anticipate that video ads (+ 23.4%), social media ads (+ 21.9%), and search-linked ads (+ 12.9%) will drive growth.
TV advertising expenses are mainly 3.6% due to the FIFA World Cup and Qatar tournament, radio is 5.0%, and restrictions on social activities have been relaxed for movie theaters (cineads) and OOH (outdoors / transportation). As a result, we expect growth of 19.6% and 11.5%, respectively. On the other hand, for newspapers and magazines, digital distribution is on the rise, but due to the decrease in paper media, it is expected to grow negatively (△ 4.1%, △ 2.7%), respectively.
By industry, the growth rate of the technology sector is expected to be the highest at 11.3% due to the increase in opportunities to use digital devices. Retail is also expected to grow at 11.0%, one of the leading sectors of the economy, due to growth in the e-commerce market, new entrants and the launch of new retail platforms.

■ About the Japanese advertising market in 2022
The Japanese advertising market in 2022 is expected to grow 0.8% overall, with digital advertising growing 12.5%, mass 4 media growing 0.3%, and other media negative growth. Digital is expected to expand the advertising market with the provision of new digital video services, such as the activation of social commerce and the start of simultaneous distribution by five commercial broadcasting key stations on TVer *, which is an official commercial TV distribution service.
* From April 11, 2022, TVer will start real-time distribution of a number of popular programs centered on the golden prime time of the 5 commercial broadcasters at the same time as terrestrial broadcasting.

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(Note) “Americas”: North America, Latin America, “EMEA”: Europe, Middle East, etc., “Asia Pacific”: Asia Pacific including Japan

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Global Advertising Expenditure Growth Forecasts will be prepared by late June 2022 by collecting data from 58 markets in the Americas, EMEA and Asia Pacific (including Japan) and incorporating expertise in each market. I am. Target media are digital, television, newspapers, magazines, OOH (outdoor / transportation), radio, and cinema.
Advertising costs are denominated in local currency, minus negotiated discounts and agency commissions, and global and regional figures are converted to US dollars at the June 2022 average exchange rate. Forecasts are published twice a year, and actual and latest forecasts are all revised based on constant exchange rates.

The detailed report issued by Dentsu International can be downloaded from the URL below. (English only)
Link(URL)

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