Australian ad market forecast to grow 6.7% YOY: Dentsu
Global advertising spend is expected to increase by 8.7% in 2022, according to Dentsu’s latest report.
Global ad spend is now expected to reach US$738.5 billion (A$1 trillion) by end of this year – an adjusted number of last report’s forecast considering a strong year in 2021 and inflation’s impact on consumer demand.
The Australian market is expected to reach A$19.2 billion by the end of this year with a forecast 6.7% year-on-year growth, up from 6.1% in the previous report.
Government and political party advertising prior to the Federal election underpinned ad spend particularly across digital and TV, within a market that overall had greater a level of demand during the first half of the year.
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Ad-supported digital ‘screens’ market and digital video, particularly BVOD and TV, are expected to drive the market demand in the country in the upcoming year.
In Australia, TV (9.5%) and BVOD (12.7%) are channels hit hardest by media cost inflation, while display (3%) and print (2%) remained relatively stable.
Melanie McDonald, general manager, media investment, Dentsu ANZ said: “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.”
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Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
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