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.
The Ukrainian media Internet advertising market expands by 32% in H1 2018, to UAH 1.094 billion, the Ukrainian Internet Association (UIA) has said. The share of direct sales on this market over the period came to 56.13%. The largest segment of media Internet advertising was banner advertising, which occupies 42.28% of the market. In-stream video (pre-roll, mid-roll, post-roll, pause-roll, overlay-advertisement, picture-in-pause) was – 34.94%, in-page video advertising (content-roll) – 8.18%, other non-standard solutions (pop-up and pop-up pop-ups, catfish and screen-glide formats, synchronous banners, frontlines, full-screen advertising, sound advertisement in a digital audio stream and other types) – 8.71% and sponsorship – 5.89%.
The share of mobile media Internet advertising (targeted at mobile device users) of the total turnover of media Internet advertising was the following: 18.2% for banner advertising, 10.1% for in-stream video, 0.5% for in-page video (content-roll), 0.6% – for non-standard solutions and 0.9% fell on sponsorship.
The share of Programmatic (automated advertising) was 26.23% for purchases by agencies and 53.02% for platforms.
The share of social media and instant messengers (FB, Instagram, Twitter, YouTube, Skype, Viber and other applications) was also determined in advertising – 25.1%.
The methodology for measuring the volume of media Internet advertising was based on a cross-sectional analysis of survey data from the largest advertising agencies, websites and sales houses.
“The survey involved leading online advertising agencies: Dentsu Aegis Network Ukraine, ADV Group Ukraine, ITCG, IPlace, Qreachers, Publicis Groupe Media, TMGU, AdWork, Dievo, MediaHead, Neos, Promodo, newage, WebPromo, SeoMarket and representatives of the largest sites, holdings and sales-houses: Autocentre, Edipress, Lux (24 channel), RBC, RIA, Ukr.net, UMH/Digimedia, Admixer, DMDim/Go2Net, FISH, DigitalDecisions, Adwise, T-Sell, Rontar, All.biz, Online.ua, Novoye Vremia, RST and Obozrevatel,” the association said.
