Regional ad spending is US$35.7 billion above the 2019 pre-pandemic level in the region, led by India (+16.0%), Malaysia (+11.0%), and Hong Kong (+10.1%) which have all achieved double-digit growth.
Dentsu Global Ad Spend Forecasts predicts advertising spending will increase globally by 8.7% in 2022 with ad spend in the Asia Pacific anticipated to reach US$250.0 billion, with digital making up the majority of spending.
India leads the Asia-Pacific with a growth rate of 16.0% this year and predicted increases in advertising spending of 15.2% in 2023 and 15.7% in 2024, says Dentsu, while spending on advertising in China is expected to rise by 4.0% in 2023 and 5.4% the following year.
Dentsu said the updated forecast of media investment is released in the context of escalating media price inflation, geopolitical tension, upcoming key elections, and the FIFA World Cup.
“Due to continued uncertainty, the current and historical comparison data has also been adjusted to remove Russian investment from the forecast, to better reflect the rest of the international ad spend trends and predictions,” Dentsu said in a statement
Highlights
- Asia Pacific ad spend is expected to grow by 5.1% to reach US$250.0 billion in 2022 – US$35.7 billion above the 2019 pre-pandemic level in the region.
- The forecast indicates that the Asia Pacific advertising market will increase by 3.9% to reach US$259.7 billion in 2023 and a further 4.7% in 2024.
- Digital makes up 60.7% (US$151.7 billion) of overall APAC spend.
- Globally, the Americas is the top advertising spend region for 2022, whilst the fastest growing markets, India at 16.0% growth will stay ahead of the US at 12.8% and Brazil at 9.0% as the fastest growing market.
- China’s advertising spend is forecast to grow by 4.0% in 2023 and 5.4% in 2024.
- India’s advertising market is projected to grow by 15.2% in 2023 and 15.7% in 2024.
APAC to grow 5.1% – led by digital at 60.7% of spending
“The latest Dentsu Ad Spend July 2022 points to a continued recovery despite another year of economic uncertainty, with APAC 2022 ad spend of US$250.0 billion, based on a growth forecast at 5.1%,” said Prerna Mehrotra, CEO Media APAC, dentsu international.
“However, continued lockdowns in key markets, geopolitical tension, and ongoing supply logistics issues could add pressure on businesses with a cascading impact on marketing spends.”
Looking ahead, dentsu expects the 2023 global advertising market to increase by 5.4% to reach US$778.6 billion followed by a further 5.1% increase in 2024.
“This year, India (+16.0%), Malaysia (+11.0%) and Hong Kong (+10.1%) have all achieved double-digit growth,” said Mehrotra, adding that “digital continues to drive growth accounting for 60.7% of all spending in Asia Pacific with Social, video and search predicted to lead digital growth.”
Overall ad spend growth in Asia Pacific ise boosted by key sporting events such as the Indian Premier League, FIFA World Cup, Beijing 2022 Winter Olympics and Paralympics, and country elections in Australia and India.
Digital continues to be the powerhouse driving APAC ad spend, as the fastest growing medium at 11.5% to reach US$151.7 billion, a 60.7% share of total ad spend. Fuelling this is the double-digit growth of Programmatic (32.3%), Paid Social (27.4%), and digital display (13.3%) in 2022.
“Despite factors such as inflation putting pressure on household budgets, combined with 2021 being a tough comparative year, we have only marginally revised down our 2022 global growth forecast by just 0.4 percentage points.”
In SEA, TV spend is still significant, with the largest share (57.2%) of total SEA spend (Indonesia, Singapore, Malaysia, Philippines, Thailand and Vietnam), and a growth rate of 4.6%.
“Even with everything which has happened in recent months, not least the protracted war in Ukraine and its international repercussions, the advertising recovery remains strong on a global scale,” said Peter Huijboom, Global CEO, Media and Global Clients, dentsu international.
“Despite factors such as inflation putting pressure on household budgets, combined with 2021 being a tough comparative year, we have only marginally revised down our 2022 global growth forecast by just 0.4 percentage points.”
Globally, Out-of-Home (OOH) and cinema will both see encouraging double-digit growth in 2022 (respectively 11.5% and 19.6%). Radio is also forecast to grow, much faster than initially considered with an updated forecast of 5.0% for the year, up from 2.0% in the January predictions – which is mainly due to a faster return to the office. As with previous predictions, ad spend in newspapers and magazines will continue to decline.
The full Dentsu Global Ad Spend Forecast – July 22, which also includes details of APAC spend, can be downloaded here: Dentsu Ad Spend July 2022.
Image by John Cameron
