According to the latest Dentsu global ad spend report, the global advertising market grew 8.0% in 2022, reaching a total of $713.6 billion, an increase of $53.0 billion. While the market started the year strong, growth slowed as the year progressed due to economic uncertainty. Out of the 58 markets analyzed, over a third revised their growth forecast for 2022 down, but all regions still saw positive growth, with the Americas at 13.2%, EMEA at 4.3%, and APAC at 3.9%.
The ad market in 2023 is predicted to continue on a positive trajectory in all regions, with APAC at 4.0%, EMEA at 3.8%, and the Americas at 3.7%. Almost all markets (51 out of 58) are expected to see growth, although it will be more moderate at 3.8%, down 1.6% from the previous prediction of 5.4%.
Total ad spend is expected to reach $740.9 billion in 2023. More than half of the analyzed markets (30 out of 58) have revised their 2023 forecast down from the July 2022 report.
Macroeconomic challenges, such as rising energy, food, and fuel costs and interest rates, as well as their impact on business and consumer spending, are leading to slower ad spend growth expectations. However, the lifting of travel restrictions in Japan and government stimulus measures to support travel are expected to drive an increase in advertising demand in the country. Other positive global drivers of ad spend in 2023 include events such as the Rugby World Cup and the FIFA Women’s World Cup.
A significant portion of the growth in 2023 will be driven by media price inflation, with ad spend at constant prices predicted to be -0.6% compared to 3.4% growth at current prices in the top 12 markets. Inflation is higher for linear TV (broadcast and pay) due to continuing demand and declining scheduled TV audiences, but lower for other audio-visual formats such as connected TV, broadcaster video on demand, digital video, and traditional media like print and radio.