According to the latest report from dentsu, global advertising spend is set to increase by 8.7% in 2022 – reaching US$738.5 billion (A$1 trillion) by the end of this year.
In Australia, the market is forecasted to hit 6.7% year-on-year growth, and reaching A$19.2 billion by the end of 2022. This number is up from 6.1% in the January dentsu forecast.
In 2022, digital has made up a 64.8% share of spend, which is set to rise by 6.3% as the year ends, Looking ahead, in 2023 this number is expected to lift by 5.9%.
TV ad spend – including BVOD – makes up a 20.5% share, with predictions that number will grow by 5.5% in 2023 and 3.5% in 2024.
Digital and Online Video/CTV/BVOD are expected to be the major drivers behind continued ad market growth in Australia. Growth is expected at 5.4% in 2023 and 4.7% in 2024.
OOH is predicted to grow 11.5% while cinema is set to rocket up 19.6% in 2022. Radio is also forecast to rise faster than January predictions of 2.0%, with the new forecast for the year predicting a 5.0% rise in 2022.
Melanie McDonald, general manager, media investment, dentsu ANZ said: “While it has been a turbulent environmental start to the year, the Australian market continues to see growth in ad spend across all key channels, with digital screens performing particularly well as brands capitalise on market demand.
“As a result, we have revised our predictions for the remainder of the year and are anticipating digital video will continue to grow, particularly BVOD and CTV, supplementing strong demand in the linear TV market.
“Video is increasingly becoming the new ‘shop window’ by offering both branding and performance outcomes for clients. In addition to this, an accelerating eCommerce and retail display landscape will continue to drive budgets.
“It is pleasing to see the bounce back of out-of-home and sustained growth of audio post the two years of lockdowns.
“Given the current climate, it is our role to best prepare clients for what comes next. This means ensuring clients have greater transparency of ad spend, paired with local and global consumer trends so they can maximise their investment and form deeper, more meaningful connections with their customers.”