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Advertising Industry: Difference between revisions
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=== Disclaimers === | === Disclaimers === | ||
Do advertising agencies like Magna and Zenith have a positive bias? | Do advertising agencies like Magna and Zenith have a positive bias? | ||
=== Magna Forecast | === Magna Forecast === | ||
==== June 2023 ==== | ==== June 2023 ==== | ||
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''Magna is using the assumption of Real GDP growth of +1.3% in 2023.'' | ''Magna is using the assumption of Real GDP growth of +1.3% in 2023.'' | ||
=== Zenith Forecast | === Zenith Forecast === | ||
According to Zenith, the advertising industry is expected to maintain its resilience in 2023 despite current economic challenges, driven by the growth of new channels such as retail media and advertising on [https://www.appsflyer.com/glossary/svod/ Subscription Video on Demand] (SVOD) services. They anticipate a 4.5% growth in ad spending. Furthermore, global ad spending growth is expected to pick up pace to 7.2% in 2024, driven by major events like the US Presidential elections and the Olympics. | ==== June 2022 ==== | ||
* The global advertising market will continue to maintain its resilience and Zenith '''forecasts a 4.4% growth in global advertising expenditure for 2023''' | |||
* Global adspend growth is expected to accelerate '''6.9% in 2024 and 4.8% in 2025''' to account for nearly $1 trillion in advertising spending in 2025. | |||
* '''North America''' is expected to continue to provide the biggest contribution to advertising growth between 2023 and 2025 with adspend growing US $53 billion – representing 41% of total adspend during the period. A healthy growth of '''4.3% is expected in 2023 and Zenith forecasts advertising expenditure will then jump to 9.8% in 2024 thanks to the Presidential election and the Olympics.''' | |||
* '''Online, including Retail Media, Search and Social Media''', will continue to lead as the fastest-growing category, constituting 57% of overall adspend in 2023. Zenith forecasts an increase to 59% in '''2025, with a compounded annual growth rate of 6.8%.''' Retail Media will drive the category growth, with an estimated annual global spend of $129 billion in 2025 and an expected compounded annual growth rate of 11.5% from 2022 to 2025. | |||
* Zenith forecasts a compounded growth rate of '''25% between 2022 and 2025 within the Subscription Video on Demand (SVOD) space.''' | |||
==== December 2022 ==== | |||
According to Zenith, the advertising industry is expected to maintain its resilience in 2023 despite current economic challenges, driven by the growth of new channels such as retail media and advertising on [https://www.appsflyer.com/glossary/svod/ Subscription Video on Demand] (SVOD) services. '''They anticipate a 4.5% growth in ad spending. Furthermore, global ad spending growth is expected to pick up pace to 7.2% in 2024''', driven by major events like the US Presidential elections and the Olympics.<ref>https://www.zenithmedia.com/zenith-forecasts-4-5-growth-for-2023-after-7-3-uplift-in-2022-marking-continued-healthy-growth/#:~:text=Zenith%20estimates%20that%20advertising%20on,are%20likely%20to%20follow%20suit</ref> | |||
Online advertising, specifically Search and Social Media, is expected to continue as the fastest-growing category, making up 55% of overall ad spending in 2022 and projected to increase to 57% by 2025, with a compound annual growth rate of 7%. | Online advertising, specifically Search and Social Media, is expected to continue as the fastest-growing category, making up 55% of overall ad spending in 2022 and projected to increase to 57% by 2025, with a compound annual growth rate of 7%. | ||