The advertising sector around the world will grow by 8.4 pc in 2022, excluding the globally distorting effects of U.S. political advertising, states GroupM’s This Year Next Year: 2022 Global forecast report.
The growth projected is slightly below GroupM’s prior 9.7 pc forecast from December, a change driven primarily by deceleration in China, which is now forecast at 3.3 pc versus 10.2 pc in December of last year.
Pure-play digital advertising platforms should grow by 11.5 pc on an underlying basis during 2022 versus their previous 13.5 pc forecast
Overall, digital advertising on pure-play platforms (not including spending by advertisers on digital extensions of traditional media and excluding U.S. political advertising activity) represents 67 pc of the industry’s total this year and should amount to 73 pc in 2027.
Within digital advertising, GroupM believes that retail or e-commerce-based media growth should generally outpace all other major forms of digital media in the years ahead.
“The world’s larger social media platforms will likely collectively grow on pace with the broader digital media sector, although TikTok at minimum should continue to take share so long as its usage levels remain high and national security concerns are not acted upon,” the report states.
Expectations in the Indian market are relatively unchanged with a 22.1 pc growth forecast for 2022 as underlying growth there remains strong.
The report further states, “there is also significant potential for long-term expansion still in place in India, where the population is broadly similar in size compared to China, but India’s advertising market is less than one-tenth as big.On current estimates, India is positioned to rise from its position as the world’s tenth-largest market to become the seventh-largest, ahead of Canada, Australia and Brazil by 2025.”
In total, the report estimate that global Connected TV+ advertising amounts to $21 billion in 2022, up by 24 pc over 2021 and accounting for 12 pc of all TV globally.