Page 6 - AeM_July_2022

RESEARCH, ANALYSIS & TRENDS

Global advertising market is expected to

grow significantly against all odds

The most important results of the overall forecast:

• Advertising is expected to grow around the world
by 8.4% in 2022 (excluding US political
advertising), which is slightly below GroupM’s prior
9.7% forecast in December 2021.

• Within APAC, growth of 5.7% is expected, despite
China’s relative weakness that represents 56% of
the region. Excluding China, regional growth is
forecast to be 9.0%, compared to 8.1% previously.

According to GroupM's "This Year, Next Year"  Japan, still the world’s third-largest advertising
Global Mid-Year Forecasts, global advertising market, is forecast to grow at a faster pace
revenues are expected to grow significantly – (8.5%) than previously anticipated (5.6%), and
despite fears of an imminent recession and the without the benefit of a broadly inflationary
ongoing geopolitical situation in the world. economy.

“Coming off the lows of 2020 and the highs of 2021, the  Growth in India is predicted to remain strong
advertising market is settling into 2022, a year that’s (22.1%) and to rise from its position as the
seeing rising inflation, increased wages, mounting world’s tenth-largest market to become the
regulatory pressure on Big Tech and an overall effort seventh largest by 2025.
by consumers and marketers to find their footing in a
world that’s getting increasingly used to living with  Australia is expected to grow more modestly,
COVID-19,” GroupM states. although current levels of inflation are more
moderate there than in North America or
For the future, however, GroupM does not expect any Europe.
dangerous economic situation that could halt growth,
justifying this optimistic assessment with low  South Korea is expected to grow at a much
unemployment figures, high savings deposits in private slower pace, up only 1.0% under current
households and "robust start-ups". expectations versus 1.8% previously.

The proliferation of new small businesses, “coupled The predictions at the halfway point in 2022:
with their likely propensity to advertise at higher levels
than the business they are replacing, venture-funded • Digital Advertising: GroupM expects ad revenue
‘new economy’ advertisers seeking growth and for digital-only platforms to grow 12 percent in
Chinese-based marketers advertising abroad are 2022, an expected slowdown from the 30% growth
rate in 2021.
significant sources of growth despite some drag
brought on by the (expected) deceleration of e- • Taking a broader definition of digital advertising to
commerce and interest rate hikes. Even as individual include traditional media's digital channels,
advertising channels are becoming more digital in GroupM estimates the industry will generate $617
nature, diversification remains an important tool in billion in 2022, which is 73% of its total.
every marketer’s toolbox. Laws are changing,
economies are in flux and media are evolving rapidly, • TV Advertising: Projected growth of 4% in 2022.
but there is still ample room for advertising growth and Notably, according to GroupM, TV is globalizing in
for adaptable marketers to succeed,” GroupM a way it has never been before. U.S.-based
forecasts. streaming services continue to invest aggressively

in local-language content as they expand into
overseas markets.

6 July 2022: Search Marketing