The world’s leading marketing companies are worsening their forecasts for the growth of the advertising market on fears of a downturn in the global economy, writes The Wall Street Journal.
Global advertising revenue will increase 4.8% in 2023 to $833 billion, Magna, a Mediabrands company, forecast. In June, the company expected growth of 6.3%.
In 2022, Magna expects growth of 6.6%, mainly due to heavy campaign spending in the U.S. In June, analysts predicted a 9.2% jump in revenue.
“The economy is slowing more than expected six months ago,” said Magna Executive President Vincent Letang. – “We have lowered our forecasts for virtually all advertising categories for next year, but we still expect the market to stabilize rather than contract.
Experts predict that in consumer products and financial services, advertising budgets next year will remain about the same as this year, while spending on entertainment, travel and gambling advertising may increase due to the easing of regulatory requirements. They also expect a recovery in advertising spending in the automotive sector.
Another forecast from GroupM, a conglomerate of WPP PLC, expects ad spending to grow 5.9% in 2023 versus the 6.4% expected in June. In 2022, GroupM predicts advertising spending, excluding political campaigns, will increase 6.5%, up from 8.4% in June.
“Perhaps we’re feeling some slowdown at the end of this year and are feeling a little more pessimistic, even though we still expect growth, especially in digital advertising,” said GroupM director Kate Scott-Dawkins.
