No one was exactly predicting milk and honey, but it seems 2023 ad spend might be even worse than what analysts thought…
According to forecasts from several ad firms, including Magna, global ad revenue will only grow 4.8% to 6.5%, down from the predicted 9%.
But certain categories may be less affected.
Winners and the losers: Marketing sectors such as consumer packaged goods (CPG) and finance could flatline next year.
But entertainment, travel, and betting will continue to “be driven by regulatory relaxation and pandemic recovery,” as well as automotive advertising.
Hold the fort: Magna believes the “market will stabilize and not fall,” with a few trends showing promise:
- Biggest global advertisers remained resilient to inflation, upping prices and passing added costs to consumers with sales remaining relatively constant.
- Advertising on digital ad platforms is expected to grow by 9%, which is more than the overall expected average.
Why we care: The majority of e-commerce stores are in the CPG industry, so it will be interesting to see how they’ll respond to headwinds.
And while advertising is expected to slow, it definitely won’t stop, so make sure you tweak your clients’ expectations—and yours—accordingly.
And if you are worried about headwinds…